Subject: "Memo".

Body: As mentioned in our floor meeting recently, attached are listings of teams that we are forming to better address the business needs of Enron as it expands both in volume and scope. Supervisors of each RAC sub group provided the names for the groups with the understanding that they may have to be adjusted from time to time. Only the more senior people were included, but others will be included as appropriate. Many will have to be multidimensional. There will be no formal leader of the teams because each member is responsible for the activities of the team, regardless of the RAC group that you are in. Following are several thoughts concerning this process for consideration. - The purpose of this exercise is to better serve the customer, the commercial business units and achieve this within our control framework. - Ancillary benefits include cross training of RAC employees and heightened awareness of RAC issues. "De-silo-ization" . - All existing reporting relationships remain unchanged, for the moment. - Successful implementation of this effort will require a positive attitude among the teams. - Existing RAC responsibilities remain in effect. - Teams should meet weekly, at least, to discuss issues. Transactions will require more frequent informal meetings. - There are no excuses for forgetting to consider the impact on a deal of credit, market risk or our portfolio. - All team members are responsible for all aspects of a transaction. Offer to help out if needed. - If formal cross-training is necessary, force it to happen. - Encourage weak links in team to perform. - Each quarter RAC management will conduct portfolio reviews of the business unit with the team present. This may take one quarter to implement. - If it makes sense to sit together for logistical reasons try to arrange it with your supervisor. - Individual performance on the teams will be strongly considered in the PRC and compensation processes. The existing EES team has been quite successful and in large part was a catalyst to the recent reorganization there. You can have an impact. This process should begin immediately. Thanks in advance for your cooperation in this effort. Rick

Subject: "Banco Nazionale del Lavora".

Body: Per Bill's email, I faxed a proposed form of Enron Corp. Guaranty to the counterparty. Please do not approve any trades with this counterparty until due diligence is done on Italian law, which appears the be the place of incorporation of the counterparty. I will not assign the review of Italian law to an attorney until we receive your credit worksheet. If you feel we need to proceed with this now let me know and I will get someone to start looking at it.

Subject: "The Shed".

Body: I was going to bed the other night when my wife told me that I had left the light on in the shed, she could see from the bedroom window. As I looked for myself, I saw that there were people in the shed taking things. I phoned the police, but they told me that no one was in his area to help at this time, but they would send someone over as soon as they be available. I said OK, hung up, and waited one minute, then phoned the police back. "Hello. I just called you a minute ago because there were people in my shed. Well, you don't have to worry about them now because I've shot them all." Within five minutes there were half a dozen police cars in the area, an Armed Response unit, the works. Of course, they caught the burglars red-handed. One of the officers said: "I thought you said that you'd shot them!" I replied with "I thought you said there was nobody available!"

Subject: "Enron Portland - Dec. Futures".

Body:
Dave - I'm the new Deal Control staff person here in the Portland office, and I've been told you're the person to contact regarding counterparty match-ups for our futures deals this month. The futures were done today, and if you could let me know of the corresponding counterparties as soon as you find out, that would be very helpful. If there is anything I should know about your job or how we might help each other work better, please let me know. Thanks a lot,