IN: Susan, Attached are redlined copies of the CSA Amendments. We made a change to the Monthly Contract Quantity to exclude Force Majeure events and Section 2.4 Shaft energy interruptions. Please review and call me with any questions. x-33512. Since we have circulated the prior amendment, I think it would avoid the most confusing by giving these amendments a new execution date. I also added a section which specifices that these versions replace the amendments dated June 18, 1999. The NBV letter values will also be redone. The numbers will have to be changed. The investors have asked that instead of a Contract Year Schedule, a quarterly schedule be included. I don't have the numbers from Mark yet, but will forward those changes as soons as I get them. Mark indicated that he had discussed these changes with both you and David.

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OUT: CSA Amendments

IN: Paul Kaufman phoned with the following brief report from the Western Governor's Association "Energy Summit" that took place today. Paul will follow up with more detail when he gets back to a computer. The governors issued the following recommendations: California should immediately implement FERC's order issued last Friday and aggressively pursue all available DSM and conservation opportunties. The Western region should likewise be much more aggressive in identifying and implementing DSM and efficiency opportunities. Increase supply as soon as possible. FERC should do an investigation into the potentially negative effects that price caps can cause in the industry. FERC should add to its investigations an investigation into what caused the price spikes in the first week of December. Work with the Bush transition team to make sure that someone from the new administration is focused on the issue. Hoecker said that he is not inclined to impose a region-wide cap until California takes the actions it needs to take to help alleviate the situation (e.g., reforming regs governing utility forward contracts). Jeff

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OUT: Summary of Western Gov's Energy Summit

IN: Attached please find the September 2001 report (Exhibit No. 7 format) showing current month activity in the System Levelized Account (SLA). Information for this report comes from data provided by Gas Accounting Dept. Several items to note for this time period: Monthly MIP decreased from $2.8522 for August to $2.0535 for September. The cash portion of the SLA increased $3.9 million and the future liability portion decreased $7.3 million for a net decrease of $3.4 million. The two major components of the change in cash were: Purchases of 1.5 Bcf @ $2.25 for $3.4 million (cash out). Shippers longed Northern 0.26 Bcf @ $3.29 for $0.8 million (cash out). This file contains reports for the months of January through September. To print the desired month's report, simply click on the respective tab. pmb

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OUT: Monthly Report on SLA Activity

IN: Diane has passed her 5 year mark with the company, and as such is entitled to all the rights and priviledges of a veteran. Please congratulate her with me and come admire her gift! Cara

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OUT:
Please Congratulate Diane Cutsforth on her 5 Year Anniversary with Enron