additional controls - residual assets louise : i spoke with rick buy yesterday about improving our monitoring controls over potential assets that we might own due to some residual claim or " clawback " that enron retained when the primary asset was disposed , i . e . midwest gas storage . while we don ' t have hundreds of these situations , i am aware of several deals where we retained overriding royalties , exploration options , calls on cash flow after certain debt is paid off , etc . hopefully , most of these have been captured in our compliance system but as illustrated with midwest , our system does not appear airtight .
therefore , i propose that we immediately review all of our current and disposed portfolio for any " hidden " assets or claims that have not been properly captured . additionally , we will shore up our monitoring procedures where necessary . one of our deliverables will be to provide you and other members of senior management with a list and description of potential assets .
in addition to rac , i would like to have participation from the commercial and legal side on our review team and suggest that perhaps dick lydecker ' s group would have the appropriate resources .
i would appreciate your concurrence and feedback at your convenience . regards , rick c .
additional controls - residual assets
louise : i spoke with rick buy yesterday about improving our monitoring controls over potential assets that we might own due to some residual claim or " clawback " that enron retained when the primary asset was disposed , i . e . midwest gas storage . while we don ' t have hundreds of these situations , i am aware of several deals where we retained overriding royalties , exploration options , calls on cash flow after certain debt is paid off , etc . hopefully , most of these have been captured in our compliance system but as illustrated with midwest , our system does not appear airtight .
therefore , i propose that we immediately review all of our current and disposed portfolio for any " hidden " assets or claims that have not been properly captured . additionally , we will shore up our monitoring procedures where necessary . one of our deliverables will be to provide you and other members of senior management with a list and description of potential assets .
in addition to rac , i would like to have participation from the commercial and legal side on our review team and suggest that perhaps dick lydecker ' s group would have the appropriate resources .
i would appreciate your concurrence and feedback at your convenience . regards , rick c .