IN: This is an email
We are going to try to get to the point of uploading our nomination into pegasys this month so we are changing the meters to correctly reflect what Sitara has vs what PGLC has. The trade zone TTP is available now and I am going forward and moving November deals into the new trade zone. I am making a list of all the deals I am changing if anyone needs it. THESE ARE THE CORRECT METERS TO BE USED EFFECTIVE NOVEMBER 1, 2001 PGLC/TTP/TTP - All buys and sales that are not being nominated from a contract - ALL "CHICAGO PEOPLES" EOL DEALS ARE MAPPED TO THIS METER PGLC/NGPL/NGPL - All buys that are to be nominated specifically from an NGPL Transport Contract PGLC/NBPL/NBPL01 - All buys that are to be nominated specifically from an NBPL Transport Contract PGLC/ANR/ANR -All buys that are to be nominated specifically from an ANR Transport Contract

What is the subject?

OUT: New Meters for PGLC

IN: This is an email
Dan, I have reviewed the Wildhorse (Mesa) Gathering, Processing, and Transport Agreement. This agreement is still valid and the gas is dedicated to this Agreement through 2013. The agreement present some problematic issues which I will outline. 1. Gas Quality - The gas quality provisions only require Wildhorse to transport the gas if the gas meets the downstream carriers (in this case Northwest Pipeline) gas quality specifications. We propose to put in a treating plant which would allow the gas to meet the specifications, however there are no provision in this Agreement which allow us to insert a plant between Northwest Pipeline and Wildhorse. Wildhorse could delay are extract value from us for this connection. This is an uncertainty. 2. Wildhorse Obligation to Perform - Based on my understanding of the facts, at some point during the term of this agreement, Northwest Pipeline enforced their gas quality specifications and refused to take the gas at the downstream side of Wildhorse's Gathering System. As a result, Wildhorse shut in Enogex's production and it has been shut in ever since. Wildhorse has a right to do this under this Agreement (see #1 above) and therefore Wildhorse has not breached its obligation to transport under this Agreement. Wildhorse's obligation was suspended when Northwest refused receipt of the gas. 3. Unprofitability - Assuming Wildhorse worked with us to install the treating plant which conformed the gas to Northwest Specifications, they could refuse to provide gathering service under this agreement if it was still uneconomical for them to do so. If they decided it is uneconomical for them to do so, they have the right to provide Enogex with various potential solutions which include (i) renegotiating the terms (ii) allowing Enogex to operate Wildhorse's equipment at Enogex sole cost, expense and risk, or (iii) release the gas from the Agreement. The problem here is that there is no time limit under which Wildhorse must reach a solution with us and no specific solution they must reach. Wildhorse could drag this out for some extended period of time and they could extract significant value. My recommendation is that we make Enogex's resolution of these issues with Wildhorse a condition precedent to closing and funding this deal. I know the timing is late. However if Enron funds this deal and takes on the risk of negotiating with Wildhorse to resolve either a new deal or a release of the gas, everyone needs to understand that such negotiation could take substantial time and Wildhorse will have significant leverage. Let me know if you wish to discuss this further or have any questions.

What is the subject?

OUT: Wildhorse Gathering Agreement

IN: This is an email
In today's eSpeak session you made the following comments: "To the best of my recollection, the only asset we sold in the second quarter to a subsidiary company was our Clean Fuels business, which we sold to EOTT, and on that transaction there was virtually no profit." In fact, EGM recognized $120 million in mark to market earnings from an offtake agreement that was inextricably linked to the sale. The recognition of these earnings would not have been possible without the sale. My confidence in your integrity compells me to alert you of my concern with your statements from the eSpeak session. I urge you to investigate the transaction further. After you have done so, I believe you will agree with me that your statements appear misleading to anyone with a better understanding of the deal. Regards,

What is the subject?

OUT:
EGM earnings from EOTT transaction