re : additional controls - residual assets louise : i agree with your assessment that this project will essentially be managing the legal risk that accompanies these residual interests . since 99 % of these interests resulted from deal guys trying to salvage value from troubled assets that never paid out , i initially thought that lydecker ' s assessment of any potential value would be helpful . as you point out , however , this is step 2 of the process with step 1 being compilation of the list which my group can handle alone . i will let you know when we get the list together . thanks for your input ! rick c .
- - - - - original message - - - - -
from : kitchen , louise
sent : friday , april 06 , 2001 10 : 41 am
to : carson , rick l .
cc : buy , rick
subject : re : additional controls - residual assets
i don ' t quite understand the need for dick ' s group - all we need now is a complete list of everything and then we can decide what to do with it . there will be items which fall under many different groups . these are assets which are probably best managed from a legal perspective as essentially all we are managing is the ongoing legal risk .
i really forsee getting the list and making mark haedicke responsible for them on a long term basis .
tried to call you to discuss . let ' s talk later - of course you can use dick ' s group if you think appropriate - i just think this is probably a legal risk issue .
louise
from : rick l carson / enron @ enronxgate on 04 / 06 / 2001 09 : 39 am
to : louise kitchen / hou / ect @ ect
cc : rick buy / enron @ enronxgate
subject : 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 .
re : additional controls - residual assets
louise : i agree with your assessment that this project will essentially be managing the legal risk that accompanies these residual interests . since 99 % of these interests resulted from deal guys trying to salvage value from troubled assets that never paid out , i initially thought that lydecker ' s assessment of any potential value would be helpful . as you point out , however , this is step 2 of the process with step 1 being compilation of the list which my group can handle alone . i will let you know when we get the list together . thanks for your input ! rick c .
- - - - - original message - - - - -
from : kitchen , louise
sent : friday , april 06 , 2001 10 : 41 am
to : carson , rick l .
cc : buy , rick
subject : re : additional controls - residual assets
i don ' t quite understand the need for dick ' s group - all we need now is a complete list of everything and then we can decide what to do with it . there will be items which fall under many different groups . these are assets which are probably best managed from a legal perspective as essentially all we are managing is the ongoing legal risk .
i really forsee getting the list and making mark haedicke responsible for them on a long term basis .
tried to call you to discuss . let ' s talk later - of course you can use dick ' s group if you think appropriate - i just think this is probably a legal risk issue .
louise
from : rick l carson / enron @ enronxgate on 04 / 06 / 2001 09 : 39 am
to : louise kitchen / hou / ect @ ect
cc : rick buy / enron @ enronxgate
subject : 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 .