Q: Neither EWS/RAC/EGF employees nor family members or others living in their household or financially dependent on the EWS/RAC/EGF employee may purchase or sell securities of any entity (or derivatives thereof) listed on the Restricted List for your or their personal or related accounts or recommend the purchase or sale of such securities to any person, except with the prior approval of the Compliance Department in consultation with the ENA Legal Department. In addition to the trading restrictions above, should you at any time possess non-public material information about any public company, you, your family members and anybody that is financially dependent on you, are restricted from trading in that issue, and you may not disclose the non-public material information to anyone that does not have a business need to know. With respect to investments in privately held companies, you are responsible for complying in all respects with the policy entitled "Conflicts of Interest, Investments, and Outside Business Interests of Officers and Employees" in the July, 2000 Enron Corp. Code of Ethics. Please consult the Compliance Department with any questions you may have regarding a potential investment in a privately-held company. Company Name Stock Symbol 3 TEC Energy Corp. TTEN Active Power ACPW Adrian Resources ADRRF Applied Terravision Systems, Inc. TER CanFibre Group Ltd. CFGL Carrizo Oil & Gas Inc. CRZO Catalytica Energy Systems, Inc. CESI Crown Energy CROE CyNet, Inc. CYNE Enserco Energy Service Company, Inc. ERC eSpeed, Inc. ESPD FuelCell Energy, Inc. FCEL Hanover Compressor Co. HC ICE Drilling Enterprises Inc. IDF Impact Energy IEY Industrial Holdings, Inc. IHII Kafus Environmental Industries, Inc. KS KCS Energy KCS Nakornthai Strip Mill Public Co Ltd NSM SET Paladin Resources PLC PLR LD Southwest Royalties SWROY Syntroleum Corp. SYNM Tejon Ranch Corp. TRC TransCoastal Marine Services, Inc. TCMS Verado VRDO The Restricted List is solely for the internal use of EWS/RAC/EGF. No one may engage in discussions regarding whether a security is or is not on the Restricted List with persons outside EWS/RAC/EGF without specific clearance from the Compliance Department in consultation with the ENA Legal Department. No employee of any Enron Business Unit may engage in the trading of any Position for the benefit of any party other than an Enron Business Unit (whether for their own account or for the account of any third party) where such Position relates to (i) any financial instrument, security, financial asset or liability which falls within such employee's responsibility at an Enron Business Unit, or (ii) any other commodity not covered by (i) included in any Commodity Group. Position shall mean, collectively, the risk components (including, but not limited to, price risk, basis risk, index risk, credit risk and liquidity risk) of all products (commodities, financial instruments, securities, equities, financial assets or liabilities) which have been authorized for trading in the Enron Corp. Risk Management Policy, any of the Enron Corp. Policies or approved for trading through any amendments to this Policy. The prohibitions listed above do not replace or modify the policies set forth in EWS's Policies and Procedures Regarding Confidential Information and Securities Trading, Enron Corp.'s Risk Management Policy, or Enron Corp.'s Code of Ethics . Should you have any questions regarding the above, please contact me at ext. 31939
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A: Restricted List

Q: Attached is the latest EEI contract for your review. If you have any changes you think should be incorporated, please let me know before the the 16th of November. As you all are aware, I have been working with EEI to come up with the definition of an "Into" product. I circulated a draft definition at the last EEI meeting. There will be a conference call on Tuesday Nov.9th from 230 to 430 to further discuss with EEI members. Let me know if you would like to participate. In the meanwhile if you have any comments on the draft Into definition I circulated, please get me our comments as soon as possible. I will be meeting with the traders later today to discuss with them. Thanks for everbody's help on this project. The end may be near.
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A: EEI Update- Standardized Master Purchase and Sale Agreement and Into Definition Conference Call

Q: Afghanistan Ground War We believe plans are progressing for ground action in Afghanistan to begin over the next week. Rumsfeld and Bush are both overseas and it is unlikely that the attack would commence prior to their return. Forces earmarked for deployment include US Marines, US Rangers and British Marines. The Pentagon has reportedly suggested to London that it reclassify its marine commandos and paratroopers as "special forces" so the operation may still be depicted as an SF one. The tactical aims of such operations - which will see troops inserted by helicopter from Pakistan and then extracted via the same route - will be to destroy identified Al Qaeda targets in areas theoretically under Taleban control. Anthrax More incidents today with media outlets and politicians being the primary targets. There is a wide variety of media reporting on this, most of it unreliable. We reiterate that the U.S. government is equipped to handle isolated incidents of cutaneous anthrax exposures, but is not equipped to handle air-dispersed anthrax attacks on a wider scale, or more contagious biological weapons such as smallpox. The main impact of the current incidents (aside from those directly affected) is psychological; a further escalation of the sense of worry, which increases both political and economic pressure on the Bush Administration. Politically, there will be increased pressure "to do something" not only against the bin Laden network, but possibly Iraq. Economically, the anthrax incidents are simply another serious blow to consumer confidence. The Congressional incidents also are delaying passage of the fiscal stimulus package. Terrorist Sophistication Targeting Critical Infrastructure Not to be Overlooked The anthrax incidents also represent yet another attack against US critical infrastructure. Just as the World Trade Center and Pentagon attacks represented attacks on our transportation infrastructure, financial infrastructure, and government infrastructure, so too do the anthrax attacks target our government infrastructure (Congress, Gov. Pataki) and our communications infrastructure (Fox/CBS/ABC/NBC & mail delivery). Both the September l1th attacks and the anthrax incidents have hit targets that are significant both as critical infrastructure and as symbols of American power. The threat at Three Mile Island reported last night suggests that the possibility of attacks against energy infrastructure should certainly not be ignored and should probably be expected.
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A: US Responds to Terror #5

Q: Mr. Lay & Mr. Fastow, Just a word of encouragement, thank you for what you do for this company. People are so quick to judge aren't we. Stay strong, stay the course and most importantly, lean on the Lord for wisdom. He will help you (us) through this time. Sincerely,
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A:
Thank you and Stay Strong