Hey Guz- how's it going? I hear you took that job where you are working
those funky hours. I thought you would appreciate this little story about
the ant and the grasshopper!!! Remember to vote!!! Later, Jeff

>From: Nathan Bennett DNET <NBennett@deltanet.net>
>To: "'Jennifer Yax'" <jay@severson.com>,        "'jfbosu@hotmail.com'"
><jfbosu@hotmail.com>
>Subject: FW: Remember to Vote
>Date: Mon, 23 Oct 2000 09:01:03 -0700
>
>My dad sent this to me.  I think you will enjoy this.
>
>Subject: FW: Rember to Vote
>
>
>Ant it the truth!
>
> > Subject: FW: Remember to VOTE!!!!!!!!!!!!!!!!!!
> >
> > A story you must read!
> >
> > THE CLASSIC VERSION -
> >
> > The ant works hard in the withering heat all summer long, building his
> > house and laying up supplies for the winter.  The Grasshopper thinks
>he's
> > a fool and laughs and dances and plays the summer away.  Come winter,
>the
> > ant is warm and well fed.  The grasshopper has no food or shelter so he
> > dies out in the cold.
> >
> > THE MODERN VERSION -
> >
> > The ant works hard in the withering heat all summer long, building his
> > house and laying up supplies for the winter.  The Grasshopper thinks
>he's
> > a fool and laughs and dances and plays the summer away.  Come winter,
>the
> > shivering grasshopper calls a press conference and demands to know why
>the
> > ant should be allowed to be warm and well fed while others are cold and
> > starving.  CBS, NBC and ABC show up to provide pictures of the shivering
> > grasshopper next to a video of the ant in his comfortable home with a
> > table filled with food. "America" is stunned by the sharp contrast.  How
> > can this be, that in a country of such wealth, this poor grasshopper is
> > allowed to suffer so?
> >
> > Kermit the Frog appears on Oprah with the grasshopper, and everybody
>cries
> > when they sing "It's Not Easy Being Green."
> >
> > Bill and Hillary Clinton make a special guest appearance on the CBS
> > Evening News to tell a concerned Dan Rather that they will do everything
> > they can for the grasshopper who has been denied the prosperity he
> > deserves by those who benefited unfairly during the Reagan summers, or
>as
> > Bill refers to it as "temperatures of the 80's."
> >
> > Jesse Jackson stages a demonstration in front of the ant's house where
>the
> > news stations film the group singing "We shall overcome".  Jesse then
>has
> > the group kneel down to pray to God for the grasshopper's sake.
> >
> > Al Gore exclaims in an interview with Peter Jennings that the ant has
> > gotten rich off the back of the grasshopper, and calls for an immediate
> > tax hike on the ant to make him pay his "fair share".
> >
> > Finally, the EEOC drafts the "Economic Equity and Anti-Ant Act",
> > retroactive to the beginning of the summer.  The ant is fined for
>failing
> > to hire a proportionate number of green bugs and, having nothing left to
> > pay his retroactive taxes, his home is confiscated by the government.
> > Hillary gets her old law firm to represent the grasshopper in a
>Defamation
> > suit against the ant.  The case is tried before a panel of federal
>judges
> > that Bill appointed from a list of single-parent welfare recipients who
> > can only hear cases on Thursday's between 1:30 and 3:00 PM when there
>are
> > no talk shows scheduled.  The ant loses the case.
> >
> > The story ends as we see the grasshopper finishing up the last bits of
>the
> > ant's food while the government house he is in, which just happens to be
> > the ant's old house, crumbles around him since he doesn't maintain it.
> > The ant has disappeared in the snow.  And on the TV, which the
>grasshopper
> > bought by selling most of the ant's food, they are showing Bill Clinton
> > standing before a wildly applauding group of Democrats announcing that a
> > new era of "fairness" has dawned in America.  The grasshopper is found
> > dead in a drug related incident and the house, now abandoned, is taken
> > over by a gang of spiders who terrorize the once peaceful neighborhood.
> >
> > Remember to Vote

_________________________________________________________________________
Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com.

Share information about yourself, create your own public profile at
http://profiles.msn.com.


Shirley,

Please, invite Jacob  for an exploratory interciew.

VK, SG, ZL, KP, BL, TT, CS, TH

Vince
---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 03/08/2001
09:33 AM ---------------------------

Zimin Lu
03/08/2001 09:17 AM
To: Vince J Kaminski/HOU/ECT@ECT, Stinson Gibner/HOU/ECT@ECT
cc:
Subject: Candidate for us

Jacob Kang, currently a leading developer for PROS energy applications,
is interested in  a job in derivatives valuation.

Let me know if we want to bring him for a interview.

Zimin

---------------------- Forwarded by Zimin Lu/HOU/ECT on 03/08/2001 09:07 AM
---------------------------

"Jacob Y. Kang" <jacobyk@yahoo.com> on 03/07/2001 11:10:24 PM
To: zlu@enron.com
cc:
Subject: My cover letter and resume

Dear Zhimin,

The attached files are my cover letter and resume.
Thank you very much and I really appreciate your help
on this matter.

Ying

These two files do not contain any virus even though
there are error signs on the virus check status.

__________________________________________________
Do You Yahoo!?
Get email at your own domain with Yahoo! Mail.
http://personal.mail.yahoo.com/
 - Cover Letter_Enron.doc
 - Resume_Ying.doc


I don't know who I'm playing against... but here's my lineup.

I'm leaving for the weekend now.

QB BEUERLEIN CAR
RB JAMES  IND
RB SMITH  MINN
WR ROBINSON CHI
WR GONZALEZ KC
WR MATHIS ATL
K DENVER
D JACKSONVILLE

Gary T.


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 04/27/2001
08:19 AM ---------------------------

<Mckinsey_Quarterly_NewsLetter@quantumecommerce.com> on 04/26/2001 08:45:38 PM
Please respond to <Mckinsey_Quarterly_NewsLetter@mckinsey.com>
To: <vkamins@enron.com>
cc:
Subject: The McKinsey Quarterly Newsletter---April 2001

*****************************************************
The McKinsey Quarterly Newsletter

April 2001
http://www.mckinseyquarterly.com

******************************************************

==========On The McKinsey Quarterly Web site this month==========

Valuing dot-coms after the fall
The Internet roller coaster may rank as the market's most dramatic
upheaval over the past 20 years, but it certainly hasn't been the only
one. Remember biotech? Real estate? Leveraged buyouts? What about Japan
Incorporated? Sooner or later, investment values always revert to a
fundamental level based on cash flows. Get used to it.
http://mckinseyquarterly.com/login.asp?ArtID=1015

Mobile portals mobilize for scale
As investors have cooled to new ventures, survival is now at the top of
the agenda for mobile portals. Whether a portal stays alive will depend on
its ability to offer accessibility, awareness, and the right services. The
rest of the struggle---rapid expansion to ensure long-term survival and,
eventually, global dominion---will come down to guts and determination.
http://mckinseyquarterly.com/login.asp?ArtID=1022

The innovative organization
The idea that new businesses prosper best when separated from their
corporate parents has now become conventional wisdom. Although new
ventures do need space to develop, strict separation can prevent them from
obtaining invaluable resources and rob their parents of the vitality they
can generate. The solution? A balance of partitioning and integration.
http://mckinseyquarterly.com/login.asp?ArtID=1017

Programmers abroad: A primer on offshore software development
More and more companies are going offshore to develop and maintain their
software. The reason is simple: this approach saves time and money.
Without discipline in managing offshore relationships, however, a company
not only can squander the cost and time savings it had hoped to gain but
also may face late deliveries, escalating costs, mismatches between
expectations and deliverables, and even outright failure.
http://mckinseyquarterly.com/login.asp?ArtID=1018

+++++++++++++++++Also on the site this month++++++++++++

The alchemy of LBOs
http://mckinseyquarterly.com/login.asp?ArtID=1021

Late edition: Another chance for newspapers on the Web
http://mckinseyquarterly.com/login.asp?ArtID=1024

Unlocking the value in Big Pharma
http://mckinseyquarterly.com/login.asp?ArtID=1019

Magazines' home companion
http://mckinseyquarterly.com/login.asp?ArtID=1016

A performance index for B2B marketplaces---a mckinseyquarterly.com
exclusive
http://mckinseyquarterly.com/login.asp?url=photo_essay/y2001/home.asp

**************************************************
SHARE THE WEALTH!
If you know colleagues who'd be interested in The McKinsey Quarterly,
please forward this e-mail message to them!

**************************************************

------------------------------------------------------------------------
You are receiving this monthly newsletter because you're a registered user
at mckinseyquarterly.com, the on-line journal of business and economics
published by McKinsey & Company.

To unsubscribe, click the link below. Or, if your e-mail program does not
support hyperlinks, copy and paste the address into your browser.
http://mckinseyquarterly.com/quickunsub.asp?userid=251060
------------------------------------------------------------------------
Address other questions or comments to: quarterly_info@mckinsey.com
------------------------------------------------------------------------


Yes. Isn't that nice!

 -----Original Message-----
From: 	Taylor, Gina
Sent:	Friday, February 15, 2002 4:20 PM
To:	Harris, Steven; Hyatt, Kevin
Subject:	Article

I wanted to be sure you saw this.

Gina

Development of Sonoran Pipeline Project Halted

02/15/2002
PR Newswire
(Copyright (c) 2002, PR Newswire)
HOUSTON, Feb. 15 /PRNewswire-FirstCall/ -- Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and Calpine Corporation (NYSE: CPN) today announced the termination of the proposed Sonoran Pipeline project. The Sonoran Pipeline was unable to secure sufficient binding commitments to make a successful project given market conditions. Securing firm transportation agreements was a stipulation that executives of both companies initially stated was necessary before development of the project could begin. Neither company has spent significant dollars on the proposed development of the pipeline and it was not expected to begin service until 2004.
Both KMP and Calpine will continue to evaluate other opportunities to serve the growing California market.
Phase I of the proposed Sonoran Pipeline would have extended from the Blanco Hub and terminated near Needles and Topock, Calif., with the possibility of a second phase extending into northern California.
Based in San Jose, Calif., Calpine Corporation is an independent power company that is dedicated to providing customers with clean, efficient, natural gas-fired power generation. It generates and markets power, through plants it develops, owns and operates, in 29 states in the United States, three provinces in Canada and in the United Kingdom. Calpine also is the world's largest producer of renewable geothermal energy, and it owns 1.3 trillion cubic feet equivalent of proved natural gas reserves in Canada and the United States. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, visit its website at www.calpine.com .
Kinder Morgan Energy Partners, L. P. is the nation's largest pipeline master limited partnership with an enterprise value of approximately $9 billion. KMP owns and operates more than 20,000 miles of pipelines and over 70 terminals. Its pipelines transport more than two million barrels per day of gasoline and other petroleum products and up to 4.3 billion cubic feet per day of natural gas. Its terminals handle over 50 million tons of coal and other bulk materials annually and have a liquids storage capacity of more than 53 million barrels for petroleum products and chemicals. KMP is also the leading provider in the U.S. of CO2, which is used in enhanced oil recovery projects.


[IMAGE]
[IMAGE]

	[IMAGE]

[IMAGE]
[IMAGE]
[IMAGE]
[IMAGE]
[IMAGE]
ADVANCED SEARCH

[IMAGE]

[IMAGE]
	[IMAGE]
	[IMAGE]

	Wednesday  April 25th 2001

	Subscribe now! | E-mail & Mobile Editions |  Screensaver

	[IMAGE]
	[IMAGE]

[IMAGE]

OPINION

WORLD

BUSINESS

FINANCE

SCIENCE

PEOPLE

BOOKS & ARTS

MARKETS

DIVERSIONS

[IMAGE]

[IMAGE]

[IMAGE]
[IMAGE]
[IMAGE]
[IMAGE]
[IMAGE]
Our new travel section
[IMAGE]
[IMAGE]
[IMAGE]
[IMAGE]

[IMAGE]
[IMAGE]
[IMAGE]
[IMAGE] [IMAGE]
[IMAGE]  SURVEY:  SOFTWARE

 Find  thought-provoking articles about the future of software in the newly
published  Economist survey. This essential reading provides a history of
open source  software, details the growing trend towards software leased via
the Internet,  and explains the battle of operating system platforms. Click
here to read about the future of software.

    [IMAGE]

PRINT EDITION
THE ECONOMIST
 [IMAGE]Full contents
[IMAGE]Subscriptions

[IMAGE]
[IMAGE]
[IMAGE]
[IMAGE]
[IMAGE]
[IMAGE][IMAGE]	[IMAGE]	[IMAGE]	[IMAGE]	On the Global Agenda
				 April  25th 2001

				Japan's  maverick wins
				Junichiro  Koizumi, a politician regarded by party elders as a dangerous
maverick,  has been elected leader of Japan's ruling Liberal Democratic
Party  and is set to become prime minister. He could be a breath of fresh
air for Japan*if his reformist zeal can survive the next few weeks
				Full  article

				Freeing  trade in the Americas
				Protesters  captured much of the media attention at the Summit of the
Americas  in Quebec on April 20th-22nd. The leaders themselves were
undeterred.  They took an important step towards their goal: creating the
largest  free-trade area in the world.
				Full  article

				Cavallo's  crisis
				Political  confusion, mounting economic woes and waning confidence threaten
to  push Argentina into a debt default. Unless Domingo Cavallo, the economy
minister, can pull the country back from the brink, the consequences  for all
Latin America will be dire
				Full  article

				Upsetting  China
				George  Bush's long-expected decision about which arms to sell to Taiwan
does  not go as far as many in the Republican Party had demanded, but it  is
enough to alter the balance of power in Asia, and enough to upset  the
Chinese
				Full article

				Dialling  up trouble
				Mobile-telephone  operators are in big trouble. Some equipment suppliers are
stumbling  too. Mergers and takeovers beckon throughout the industry
				Full article

				Getting  America moving again
				The surprise  cut in American interest rates on April 18th underlined the
Federal  Reserve's determination to avoid recession in the world's largest
economy. But will the Fed's newly aggressive strategy work? And what  are the
long-term implications for monetary and fiscal policy?
				Full article

				NEW  ON ECONOMIST.COM: GLOBAL EXECUTIVE

				Global  Executive is a new career and management section on Economist.com
that provides guidance for executives with an international  outlook. With
job postings, personalised career advice, observations  on employment trends
and reviews of the latest management books,  it's indispensable to the
internationally-minded business executive.  Visit Global  Executive today.

				SEARCH
				The EconomistGlobal LibraryThe webThe EIU Advanced search

				[IMAGE]
				Customer service

				To stop receiving this newsletter, please send an e-mail with "unsubscribe"
in the subject line to global_agenda-off@ lists.economist.com

				If you are a registered user at The Economist website, you can sign up for or
cancel the text and html versions of this newsletter or change your e-mail
address by amending your details.

				If you would like to advise us of a new e-mail address and are not registered
at The Economist website, please send an e-mail with your request to:
economist-newsletters@lists.economist.com

				?
					[IMAGE]	[IMAGE]
					[IMAGE]	[IMAGE]
				[IMAGE]  	[IMAGE]	[IMAGE]
						[IMAGE]

						GO TO ECONOMIST.COM
						 , Copyright 2001 The Economist Newspaper and The Economist Group. All rights
reserved.
						Legal disclaimer | Privacy Policy | Terms & Conditions
						[IMAGE]
						[IMAGE]


Per my call and your response.

On Arcos - the horse is out of the barn-  They start shipping turbine engines
in a month and the HRSG steel in less-

----- Forwarded by John G Rigby/ENRON_DEVELOPMENT on 04/17/2001 06:25 PM -----

	John G Rigby
	03/28/2001 09:26 AM

		 To: Bob Carter/HOU/ECT@ECT, Kay Mann/Corp/Enron@Enron, Sheila
Tweed/HOU/ECT@ECT, Scott Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc:
		 Subject: Variations- Change Orders- GE - impacts on manufacturing- Need your
thoughts today .

One of the World Hunger issues is that GE does  not want Enron to be able to
issue a unilateral change order which would impact the manufacturing schedule.

We have the same issue in the Arcos Power Island deal.

Following is what I intend to propose to solve the Arcos problem and might
work  for World Hunger:

" Purchaser acknowledges taht Seller's ability to accomodate changes in
manufacturing scope in a timely or cost effective manner diminish as Seller
gets further along into the manufacturing process, and after a point changes
can only be made after assembly completion or in the field without adversely
affecting Seller's manufacturing obligations to other clients (a "Client
Impact").  Where such a Client Impact circumstance exists, Seller shall
identify such constraints to Purchaser in its proposal submitted pursuant to
Clause 17.2.(b) [time and cost estimate to accomodate the Change
Order-Variation Order], which Purchaser shall take into account in evaluating
Seller's proposed cost and time changes arising out of such Variation scope
change. "

I would appreciate your thoughts as to whether this works for us in the World
Hunger document-  I do  not want to propose for Arcos if it gives you great
difficultly for World Hunger.


You speak from 8:30 - 10:00 - Dogwood Room on the 3rd floor.


Thanks so much!

   Kate Symes @ ECT                11/28/2000 06:45 PM

To: Kimberly Hundl/Corp/Enron@ENRON
cc:

Subject: Re: Deal #467090 Puget Sound Energy, Inc.

I'm sorry it's taken me so long to track down this name and number, but I
finally spoke with someone at Puget who said Suzanne McFadden is the person
you need to talk to. Her number is 425-462-3844.

If you need any other information, please don't hesitate to ask.
]
Thanks,
Kate

Kimberly Hundl@ENRON
11/28/2000 07:41 AM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Deal #467090 Puget Sound Energy, Inc.

Can you please get a contact name and phone number for this counterparty from
Mike Swerzbin as soon as possible? -I need to get a verbal confirm on this
deal so that we can send out the confirmation letter and the number we have
in the system has been disconnected.  Also, we're checking on that other deal
that I asked you about yesterday (I thought we confirmed it under the
original deal # so I wasn't sure if we needed to confirm it again)
Thanks!
Kim


NewEnergy, Inc. has changed its name to AES NewEnergy, Inc.  This is a name
overlay in GCP.


It's official.  I'm going to start up there March 12th.  As for a place to
live, I'll probably make a quick trip up there sometime next week to look at
apartments.

Robin

From: Richard Tomaski@ENRON on 02/22/2001 02:59 PM
To: Robin Rodrigue/HOU/ECT@ECT
cc:
Subject: Re:

The sooner the better.  Do you have a place to live yet?

Let me know when its official, so I can tell the group you're coming.

Richard

	Robin Rodrigue@ECT
	02/22/2001 08:42 AM

		 To: Richard Tomaski/Corp/Enron@ENRON
		 cc:
		 Subject: Re:

Hey Richard,

I think we've finally gotten an answer out of the analyst program.  I'm just
waiting on the paper work now.  I spoke to Laura yesterday about a possible
March 12th start date.  Let me know if that date's okay for you.

I'll let you know if anything changes.

Robin

From: Richard Tomaski@ENRON on 02/22/2001 08:29 AM
To: Robin Rodrigue/HOU/ECT@ECT
cc:
Subject:

What's going on?  I haven't heard from you in awhile.  Laura indicated to me
that she was able to do something with the analyst program to hopefully solve
your cost of living issue.  We would still love to have you in Chicago.  Let
me know what you are thinking.

You may have told Laura, but I haven't spoken to her much in the last couple
of weeks and we were all wondering up here in Chicago.

Richard


We just received a letter from the PX asking us to enter into an indemnity
agreement with them or requiring us to post collateral for the full amount of
the unsecured credit exposure.  We are researching this issue from the EES
side.  Wanda and Don, we are sending this letter to you.  Can you determine
what amounts we are talking about for EES?   This letter has also been sent
to EPMI and Portland General and I assume will be reviewed by their legal
team.  Bill Bradford, have you sent this on to Portland General.?
If I have missed someone that this memo should have been forwarded to, please
forward it on.
Jeff Dasovich, can you forward to Mike Day?

From: Jeff Dasovich@ENRON on 01/04/2001 02:58 PM
Sent by: Jeff Dasovich@ENRON
To: Jeff Dasovich/NA/Enron@Enron
cc: Alan Comnes/PDX/ECT@ECT, Angela Schwarz/HOU/EES@EES, Beverly
Aden/HOU/EES@EES, Bill Votaw/HOU/EES@EES, Brenda Barreda/HOU/EES@EES, Carol
Moffett/HOU/EES@EES, Cathy Corbin/HOU/EES@EES, Chris H Foster/HOU/ECT@ECT,
Christina Liscano/HOU/EES@EES, Christopher F Calger/PDX/ECT@ECT, Craig H
Sutter/HOU/EES@EES, Dan Leff/HOU/EES@EES, Debora Whitehead/HOU/EES@EES,
Dennis Benevides/HOU/EES@EES, Don Black/HOU/EES@EES, Donna
Fulton/Corp/Enron@ENRON, Dorothy Youngblood/HOU/ECT@ECT, Douglas
Huth/HOU/EES@EES, Edward Sacks/Corp/Enron@ENRON, Eric Melvin/HOU/EES@EES,
Erika Dupre/HOU/EES@EES, Evan Hughes/HOU/EES@EES, Fran Deltoro/HOU/EES@EES,
Frank W Vickers/HOU/ECT@ECT, Gayle W Muench/HOU/EES@EES, Ginger
Dernehl/NA/Enron@ENRON, Gordon Savage/HOU/EES@EES, Harold G
Buchanan/HOU/EES@EES, Harry Kingerski/NA/Enron@ENRON, Iris Waser/HOU/EES@EES,
James D Steffes/NA/Enron@ENRON, James W Lewis/HOU/EES@EES, James
Wright/Western Region/The Bentley Company@Exchange, Jeff Messina/HOU/EES@EES,
Jeremy Blachman/HOU/EES@EES, Jess Hewitt/HOU/EES@EES, Joe
Hartsoe/Corp/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Kathy
Bass/HOU/EES@EES, Kathy Dodgen/HOU/EES@EES, Ken Gustafson/HOU/EES@EES, Kevin
Hughes/HOU/EES@EES, Leasa Lopez/HOU/EES@EES, Leticia Botello/HOU/EES@EES,
Mark S Muller/HOU/EES@EES, Marsha Suggs/HOU/EES@EES, Marty Sunde/HOU/EES@EES,
Meredith M Eggleston/HOU/EES@EES, Michael Etringer/HOU/ECT@ECT, Michael
Mann/HOU/EES@EES, Michelle D Cisneros/HOU/ECT@ECT, Mike D Smith/HOU/EES@EES,
Mike M Smith/HOU/EES@EES, mpalmer@enron.com, Neil Bresnan/HOU/EES@EES, Neil
Hong/HOU/EES@EES, Paul Kaufman/PDX/ECT@ECT, Paula Warren/HOU/EES@EES, Richard
L Zdunkewicz/HOU/EES@EES, Richard Leibert/HOU/EES@EES, Richard
Shapiro/NA/Enron@ENRON, Rita Hennessy/NA/Enron@ENRON, Robert
Badeer/HOU/ECT@ECT, Roger Yang/SFO/EES@EES, Rosalinda Tijerina/HOU/EES@EES,
Sandra McCubbin/NA/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Scott
Gahn/HOU/EES@EES, Scott Stoness/HOU/EES@EES, Sharon Dick/HOU/EES@EES,
skean@enron.com, Susan J Mara/NA/Enron@ENRON, Tanya Leslie/HOU/EES@EES, Tasha
Lair/HOU/EES@EES, Ted Murphy/HOU/ECT@ECT, Terri Greenlee/NA/Enron@ENRON, Tim
Belden/HOU/ECT@ECT, Tony Spruiell/HOU/EES@EES, Vicki Sharp/HOU/EES@EES,
Vladimir Gorny/HOU/ECT@ECT, Wanda Curry/HOU/EES@EES, William S
Bradford/HOU/ECT@ECT, Mike D Smith/HOU/EES@EES, Donna
Fulton/Corp/Enron@ENRON, mjackso7@enron.com, psmith3@enron.com
Subject: Brief Summary of Today's Activities in California (at Least Thus
Far)

The Commission voted out the order 5-0, essentially as it appeared
yesterday.  Three key changes:
They clarified that the surcharge applies to Direct Access customers (but the
entire "rate freeze" structure remains intact for now).
The Commission reversed itself and chose not to adopt TURN's "netting out" of
gen revenues and CTC collections, and said instead that the Commission will
consider it as an option in the next phase (a move likely made in order to
lower chances of a successful utility appeal).
The Commission added to the decision language saying that it will study the
pros/cons of securitizating the utilities' power purchase costs.  They will
submit a report on the issue to the Governor and Legislature.
On this last point, wire reports are rampant about the possibility that
legislation will be introduced as early as today proposing to securitize the
utilties' power purchase costs.  This action has reportedly been the result
of discussions that occured through the night between the governor's office,
the utilities and the ratings agencies in reponse to the fact that the
decision issued by the PUC falls well short of what's needed to keep the IOUs
credit worthy and solvent.  As a result of those wires stories, the
utilities' stock has come back (Edison was down as low as 6.25 and is
currently at 10 7/8; PG&E was at 8 7/8 and is currently at 11 7/8).  We're
working with Sandi McCubbin, who heads-up our legislative activities in
California, to get more info and will report back.
The hearing was dominated by highly charged anti-generator, anti-marketer
rhetoric, which is likely to play a prominent role in the press accounts.
Only FERC was demonized more.
Each of the Commissioners, including the most recent "interim" appointee,
made strong statements regarding the undesirability of utility bankruptcy.
The Commission left open the possibility of "doing more" at their next
meeting (two weeks from today), which means the negotiations with the
utilities and ratings agencies are likely to continue. And if an agreement is
reached, it could end up on the next agenda.


Thanks for the email, Kim.  It was nice to get.  Of course you can stay in touch.

Have a great holiday.

Jeff

 -----Original Message-----
From: 	Frumkin, Kim
Sent:	Monday, November 19, 2001 11:20 AM
To:	Shankman, Jeffrey A.
Subject:	re: hey

thank you for giving me an opportunity to work in a really terrific place-
and please, would you remember me when you land on your feet-
may i remain in touch with you?

thanks Jeff-this has been a great opportunity for me
just wanted to say i appreciate it


Menu for people working Christmas.

	Honey smoked Turkey
	Scalloped Potatoes (Steve)
	Green Bean Casserole (Lynn)
	Fruit Salad - (Lynn)
	Vegetable Tray	(Randall's)
	Bread (Randall's)
	Pie


9302 Cyresswood Drive
Spring Tx 77379


----- Forwarded by Mark Taylor/HOU/ECT on 08/29/2000 04:02 PM -----

	Jeffrey T Hodge
	08/29/2000 09:02 AM

		 To: Mark Taylor/HOU/ECT@ECT
		 cc: John Craig Taylor/HOU/ECT@ECT
		 Subject: re: Bid Solicitation

Mark:

I believe that these fall in your arena.  Craig will be calling you later
today to discuss.

Thanks,

Jeff
----- Forwarded by Jeffrey T Hodge/HOU/ECT on 08/29/2000 09:01 AM -----

	John Craig Taylor
	08/28/2000 04:48 PM

		 To: Jeffrey T Hodge/HOU/ECT@ECT
		 cc:
		 Subject: re: Bid Solicitation

Let's talk Tues a.m. regarding this, if convenient for you. Thanks

Craig Taylor
ext. 3-7131
---------------------- Forwarded by John Craig Taylor/HOU/ECT on 08/28/2000
04:46 PM ---------------------------

glosej@NiagaraMohawk.com on 08/18/2000 06:44:34 AM
To:
cc: leuthausers@NiagaraMohawk.com, vanvalkenburghr@NiagaraMohawk.com,
piscitellip@NiagaraMohawk.com, o'neillt@NiagaraMohawk.com
Subject: Bid Solicitation

Attached are two WORD documents that provide the details of
Niagara Mohawk's solicitation of bids to purchase swap agreements
to cover the basis from Henry Hub to various delivery points.
Please review the documents and call/E-Mail to discuss any
questions.

Niagara Mohawk's credit contact is Pat Piscitelli.  His phone
number is (315) 428-6482 and E-Mail address is
piscitellip@Niagara Mohawk.com

Please E-Mail me back to confirm your receipt of this message.

Jeffery A. Glose
Sr. Energy Contract Specialist
Niagara Mohawk Power Corporation
Supply Services - HCB3
Syracuse, New York
13202
phone:    (315) 460-2262
fax: (315) 460-2660
E-Mail:   glosej@NiagaraMohawk.com

(See attached file: Swap Form.doc)(See attached file: Bid
Solicitation.doc)

 - Swap Form.doc
 - Bid Solicitation.doc


Per your request.
---------------------- Forwarded by Kay Mann/Corp/Enron on 06/13/2000 04:57
PM ---------------------------

Linda J Simmons@ECT
06/13/2000 08:45 AM
To: Kay Mann/Corp/Enron@Enron, Heather Kroll/HOU/ECT@ECT, Ozzie
Pagan/HOU/ECT@ECT, Jeffrey M Keenan/HOU/ECT@ECT, Tom Chapman/HOU/ECT@ECT
cc:

Subject: VEPCO PPA

----- Forwarded by Linda J Simmons/HOU/ECT on 06/13/2000 08:44 AM -----

	"Nancy Wodka" <nwodka@bracepatt.com>
	06/12/2000 04:20 PM

		 To: <linda.j.simmons@enron.com>, <lisa.mellencamp@enron.com>
		 cc: "William Frederking" <wfrederking@bracepatt.com>
		 Subject: VEPCO PPA

Lisa:  Attached is a draft of the Power Purchase Agreement with VEPCO, based
on the current version of the term sheet.  In preparing the draft, we did
encounter several additional questions for Enron's consideration.  These are
noted with brackets and, in some cases, italicized notes, in the draft and
are also highlighted below.  You may want to address these issues before this
goes to VEPCO.

Cover and first page-- Should the party to the agreement (for the moment) be
ENA or a special purpose company?

Definitions--  We included a defined term "Emergency Start-Up" (a start up or
increase in energy scheduled during a day) and a place in Exhibit A to
include a price for this, although this was not covered in the term sheet.

Section 2.2--  We included a provision for VEPCO to take test energy (energy
charge only; no demand charge)--do you want this?

Section 2.3--  This was taken from the term sheet, but is it correct that COD
will be July 1 (since the demand charge is supposed to start June 1?)  Also,
it would be best to define "commencement of construction" to avoid
controversy down the road.  We could either do this now or put in a
placeholder that indicates it needs to be defined or be silent, whichever is
your preference.  Also, bear in mind that we have not included a specific
remedy (e.g., liquidated damages) if the Seller does not achieve that
milestone on time.  Under the default provision (Section 8.1(c)), there would
be a 30 day period to cure before Buyer could terminate (extendible to 90
days if a longer period of time is needed and Seller diligently pursues the
cure).  Would you prefer the right to pay ld's and extend the time period?

Section 3.1(b)--  Should the 1400 hour limitation apply to all sales under
this PPA or only sales from the Facility?  I.e., would you use this Agreement
to sell to VEPCO power in addition to what would be available from the
Facility?  Also, is this a calendar year limitation--i.e., could they take
1400 hours in the period June-Dec. 2001 or does the 1400 hours need to be
pro-rated for the first year?

Section 3.4-- Since this is not a base load plant, the normal definition of
Availability as the number of hours in a year of operations compared to the
total hours in the year would not seem to be applicable.  Instead, we stated
that the Facility would be capable of being available 92% of the year (other
than due to Force Majeure and 336 hours (2 weeks) of scheduled
maintenance)--i.e., that if they tried to schedule it, it is expected to be
available.  Is that what Enron intended?  Additionally, the term sheet stated
that a remedy for failure to meet Availability would need to be agreed--why
wouldn't cost of cover damages be appropriate? Also, please note that we
included language stating that Seller will not perform maintenance during
peak periods.

Section 3.5(b)-- Please note the bracketed language re taking Blocks of
Energy.  We have 50 MW minimum blocks but the capacity is 223--should we
allow the last Block to be 23 if they've scheduled all the rest?

Section 3.5(c)-- Please see the bracketed language at the end of this Section.

Section 4.7-- Should there a required minimum take of Energy?

Article 6-- The Genco/Santee Cooper form of PPA we used as a model did not
have any provisions on metering.  (See placeholder note in Article 6.)  Do
you want to add such a provision, ignore it or just include a placeholder for
now?

Section 9.1-- Is 30 days from invoice correct for the payment due date or
would you prefer a shorter period?

Article 15-- The Genco/Santee Cooper form had mediation as a required step
prior to arbitration.  Should we keep that?  Also, the form of arbitration is
"baseball" arbitration--i.e.,  the arbitrators have to chose one party's
position or the other's.  Is that what you want?

Section 16.2--  We used New York for governing law, on the premise that it
will be difficult to get VEPCO to agree to Texas law and we would not
recommend Virginia law for this contract.

Exhibit A-- There are a number of questions on the pricing exhibit--please
see the bracketed notes therein.

Please call and let us know how you would like to proceed on this draft.

 - VEPPPA.DOC


The attached expense report has been approved.  Please process for payment.
Jeff Skilling
---------------------- Forwarded by Jeff Skilling/Corp/Enron on 02/01/2000
04:17 PM ---------------------------

	From:  Katherine Brown                           02/01/2000 03:54 PM

To: Jeff Skilling/Corp/Enron@ENRON
cc:

Subject: Sherri Sera's expense report


I just received a voice mail from Kathy Edwards, attorney for Indicated Shippers.  She said her clients were not willing to "carve-out" the two issues of competitive bidding and scheduling rights for the Commission to decide as separate policy issues.  Indicated shippers said both issues have to be a part of a settlement.

Based on the input I have received from TW thus far, Indicated Shippers demands may make a settlement impossible.  We need to consider whether TW is willing to go further in regard to either or both of the Indicated Shippers positions (so far TW has said no).  Additionally thought should be given to whether appointment of a settlement judge at this time might be helpful.

I will try to get a call set up to discuss.  In the mean time, any feedback you have would be helpful.  Greg


Here's my itinerary.  I have called the hotel to assure we have two double
beds.

:-)

---------------------- Forwarded by Julie A Gomez/HOU/ECT on 03/23/2001 10:11
AM ---------------------------

VIKKI ANAYA <vanaya_vitoltvl@yahoo.com> on 03/23/2001 09:29:38 AM
To: JGOMEZ@ENRON.COM
cc:
Subject: TRAVEL TICKTED ==NEW YORK ==03APR

                                          AGENT VA/VA BOOKING REF
ZVB7US

                                          GOMEZ/JULIE MS

  ENRON
  1400 SMITH
  HOUSTON TX 77002

  DATE:  MAR 23 2001                   ENRON

SERVICE               DATE  FROM           TO             DEPART
ARRIVE

CONTINENTAL AIRLINES  03APR HOUSTON TX     NEW YORK NY    520P    953P
CO 1568    Y          TUE   G.BUSH INTERCO LA GUARDIA
                            TERMINAL C     TERMINAL M
                            SNACK                         NON STOP
                            RESERVATION CONFIRMED         3:33 DURATION
                  AIRCRAFT: BOEING 737-800

                            ===UPGRADE CONFIRMED====2E

HOTEL                 03APR INTERCONTINENTAL
                      08APR 111 EAST 48TH STREET
                            NEW YORK, NY 10017 1297
                            UNITED STATES OF AMERICA
                            TELEPHONE: 1-212 7555900
                            FAX: 1-212 6440079
                            CONFIRMATION: 2078036
                            SINGLE ROOM
                            RATE: ENR USD 269.00 PER NIGHT
                            GUARANTEE GIVEN
                      CXL:CANCEL BY 4PM 24HRS PRIOR

CONTINENTAL AIRLINES  08APR NEWARK NJ      HOUSTON TX     555P    852P
CO 221     Y          SUN   NEWARK INTL    G.BUSH INTERCO
                            TERMINAL C     TERMINAL C
                            SNACK                         NON STOP
                            RESERVATION CONFIRMED         3:57 DURATION
                  AIRCRAFT: BOEING 737-800

                            ===UPGRADE CONFIRMED===2B

      AIR FARE 1795.34      TAX 143.16          TOTAL USD
1938.50
                                            AIR TOTAL USD
1938.50

                                        INVOICE TOTAL USD
1938.50

PAYMENT: CCAX371389004621007/1002/A000028

RESERVATION NUMBER(S)  CO/I6RMMD

GOMEZ/JULIE MS                           TICKET:CO/ETKT 005 7026273395

CO  FREQUENT FLYER COAJ814332
***********************************************
THIS IS A TICKETLESS RESERVATION. PLEASE HAVE A
PICTURE ID AVAILABLE AT THE AIRPORT. THANK YOU
***********************************************
                  THANK YOU FOR CALLING VITOL TRAVEL

__________________________________________________
Do You Yahoo!?
Get email at your own domain with Yahoo! Mail.
http://personal.mail.yahoo.com/


Please find attached the CTG Presentation that Billy Lemmons as asked me to
forward to you.

Thanks, and if you have any questions, please feel free to call.

Kay  3-0643

Billy Lemmons@ENRON
01/18/2000 03:18 PM
To: Kay Chapman/HOU/ECT@ECT
cc:
Subject: Offsite Slides

Kay,
 Per our conversation this morning, please distribute to the attendees of
yesterday's offsite.
  Thanks,
   Billy


We're off!!!

by 0.70 contracts....talk to you tomorrow!

Robin Rodrigue
06/08/2000 06:00 PM
To: Ryan Watt/CAL/ECT@ECT
cc: Nicole LaPorte/CAL/ECT@ECT

Subject: Re: How's it looking?

Sorry it took so long.

Robin

Ryan Watt
06/08/2000 06:49 PM
To: Robin Rodrigue/HOU/ECT@ECT
cc:
Subject: How's it looking?


In response to the tragic events of September 11th and due to popular demand, eSource is offering a valuable Country Risk Analysis for those monitoring global implications and risk due to recent developments in Afghanistan, Pakistan, and India.

This report, prepared by the Economist Intelligence Unit (EIU) and available through eSource at no charge, contains the following information:

?          Political Background
?          Country Infrastructure
?          Economic Policy and Sectors
?          Trade

To request a copy of this report logon to http://esource.enron.com/RequestSearch.asp <http://esource.enron.com/RequestSearch.asp>

Submit your request online by entering applicable employee data in the required fields and referencing "EIU Pakistan/Afghanistan" or "EIU India" in the "Describe Request" box.

eSource continues to provide additional country risk and analysis information from a variety of reputable sources including CountryWatch.com and World Markets Country Analysis & Forecast, which can be accessed at http://esource.enron.com/ <http://esource.enron.com/>  Select "The World" from the right tool bar and then "Country Reports."

If you are not interested in receiving these messages in the future, please let us know, and we will kindly adjust our mailing list.


I await a return call from customer message I left with same yesterday.

Debra Perlingiere
Enron North America Corp.
Legal Department
1400 Smith Street, EB 3885
Houston, Texas 77002
dperlin@enron.com
Phone 713-853-7658
Fax  713-646-3490


there may be other attendees


I am in the process of setting up two new products  to be traded on
EnronOnline. The two products are Heating Oil Option products and the draft
of the Long Descriptions are attached. If you have any issues concerning
these products please let me know. I will keep you all updated on any revised
versions,
Thanks
jr


October 11th 2000.

From : Vivek Menezes

To : Mr. Kenneth L. Lay (klay@enron.com)

Chairman & CEO,

Enron Corp.

Dear Mr. Lay,

Further to my emails dated 22/2/2000 & 14/6/2000 introducing Tata Housing  as
a premium real estate developer in India, and specifically, our commercial
complex Technopolis KnowledgePark at Andheri (E), Mumbai. We have been given
to  understand that Enron have acquired an additional space in Kamla Mills
Compound.  We were surprised to note that Enron did not consider Technopolis
KnowledgePark  inspite of it being a ready to move in building with all the
facilities required  for a good Call Center.

A few of these facilities being -

?High speed (100 MBPS) data network with switched interconnection  between
offices.
?Provision for ISDN lines.
?5000 line MTNL exchange on campus
?Power from Tata Electric Cos, which is 20% cheaper than the  Government
supply.
?In addition, a good quality restaurant and 24 hours ATM  facility.
?Central Air-conditioning & Building Automation System.

All these facilities and more were explained to Mr. Edward de Valcourt,
Project Director Communications, Enron Corp., when he visited Technopolis
KnowledgePark on 16/6/2000. Inspite of that, we have once again not been
considered. I would like to take this opportunity to inform you that we
currently have approximately 1,00,000 sq.ft. of space available at
Technopolis  KnowledgePark. We are also in the process of constructing the
IInd Phase in the  same complex which is approximately 60,000 sq.ft. and can
be made entirely  available to you, if required.

Further, we have another building of approximately 1,00,000 sq.ft. located
strategically at Kanjurmarg. This too could be ideal for your requirement.
We  would also like to inform you that Tata Housing has a large land bank and
can  offer properties to Enron for Call Centres across the country.

We request you to once again look into the same and revert to us at the
earliest.

Thanking you

Yours sincerely,

TATA HOUSING DEVELOPMENT CO. LTD.

Vivek Menezes

Manager ) Marketing & Sales

cc : Mr. Sanjay Bhatnagar ) CEO

??? : Mr. Wade Cline ) COO

??? : Mr. P. Sreekumar

??? : Mr. Hemant Luthra

??? : Mr. Edward de Valcourt)emailed  at(Edward.de.Valcourt@enron.com)

????? Enron India Pvt. Ltd.

56, Maker Chambers VI

Nariman Point

Mumbai ) 400 021.


Please get me three copies--check with other folks in group and see if they
want one.  Thanks..  DF
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 04/07/2000
10:22 AM ---------------------------

	From:  General Announcement                           04/06/2000 06:58 AM

Sent by: General Announcement
To: All Enron Worldwide
cc:

Subject: New 1999 Annual Reports Have Arrived

The new 1999 Annual Reports are now available for distribution.  If you
haven't already requested books, you may order these through Forms
Management.  You can either use Moore Source or complete a Forms
Requisition.  The Item # on the new books is #42990.  Please keep in mind
that the quantity on these is "per book", not by the box.

If you have questions about how to order, you may contact Micael Shea on
713/853-5418 or Ruby Kinsfather at 713/853-3869.


---------------------- Forwarded by Richard B Sanders/HOU/ECT on 06/16/99
10:57 AM ---------------------------
   Rachael Adams                06/14/99 04:38 AM

To: Mark Frevert/LON/ECT@ECT, Mark E Haedicke/HOU/ECT@ECT, Danny
McCarty/LON/ECT@ECT, Richard B Sanders/HOU/ECT@ECT, Scott Sefton/LON/ECT@ECT,
Jeff Skilling/Corp/Enron@Enron, James V Derrick@Enron, Kenneth
Lay/Corp/Enron@Enron
cc: Mary Nell Browning/LON/ECT@ECT, Richard Harper/LON/ECT@ECT, Paul
Turner/LON/ECT@ECT
Subject: Memorandum

Please see the attached memorandum from Mary Nell Browning, Richard Harper
and Paul Turner.

Rachael


Anne, can you look at this deal and check to see how it was priced?
---------------------- Forwarded by Mike Grigsby/HOU/ECT on 03/20/2001 04:41
PM ---------------------------

Darla Saucier@ENRON
03/20/2001 01:26 PM
To: michael.grigsby@enron.com
cc:
Subject: FW: Newark Group Billing for February

Are you the trader on this deal???  See details below.  Should this deal be
in Sitara under two separate deals with the counterparties listed below???
Please advise ASAP.   They will not pay until this matter is resolved.

Thanks
Darla

---------------------- Forwarded by Darla Saucier/NA/Enron on 03/20/2001
01:02 PM ---------------------------

"Gong, Heidi" <hgong@tngus.com> on 03/14/2001 04:09:00 PM
To: "'darla.saucier@enron.com'" <darla.saucier@enron.com>
cc: "Cockrum, Alanna" <acockrum@tngus.com>

Subject: FW: Newark Group Billing for February

There is another problem on the invoice.  According to the PG&E
transportation billing Newark Sierra Paperboard used 72758 mmbtu and
California Paperboard used 14650 mmbtu.  The total mmbtu invoiced should
be 87408 mmbtu not 87800 mmbtu.  Please bill California Paperboard 14650
mmbtu instead.  Thanks!

 -----Original Message-----
From: Gong, Heidi
Sent: Wednesday, March 14, 2001 12:07 PM
To: 'darla.saucier@enron.com'
Cc: Cockrum, Alanna; 'suzanne.christiansen@enron.com'
Subject: Newark Group Billing for February

Please split your invoice # 22964SA to two separate billings and fax to
the below 2 locations.  We will send the check to :
Enron North America Corp
1400 Smith St.
Houston,  TX   77002
Attn:  Veronica Espinoza

72758 mmbtu to:

Newark Sierra Paperboard Corp.
800 W. Church St.
Stockton,  CA  95203
Attn: Heidi Gong
Tel #  (209) 466-7088 x201
Fax #  (209) 464-9125
Email: hgong@tngus.com

15042 mmbtu to:

California Paperboard Corp.
525 Mathew St.
Santa Clara,  CA   95052
Attn:  Alanna Cockrum
Tel #  (408) 727-7377 x229
Fax #  (408) 988-0585
Email: acockrum@tngus.com


ISDA PRESS REPORT - MARCH 2, 2001

*  Fed Study Hints Credit Risks Correlation Should Tighten -
Dow Jones
* House Passes Bankruptcy Reform - BNA
* What's A Default? - Derivatives Strategy
* Derivatives Give Extra Nudge To Falling Nikkei - Reuters

Fed Study Hints Credit Risks Correlation Should Tighten
Dow Jones - March 2, 2001

NEW YORK -(Dow Jones)- Banks should be prepared to tighten the coordination
between credit risks they are exposed to in different markets, as they adapt
to the changing requirements of the Basel Accord on capital requirements, a
Federal Reserve study says.

Specifically, the report cites exposure to derivatives as one area where
broader and more tightly integrated models of credit risk are likely to be a
future requirement for banks.

"Especially in such cases," of "positions that involve derivatives," banks
"credit risk models should reflect not only the uncertainty in future
exposures, but also the potential correlation of exposures across credits,"
the paper says.

The New York Federal Reserve study, entitled "Using Credit Risk Models For
Regulatory Capital: Issues And Options," is for future publication in a
forthcoming Economic Policy Review.

"The goal of this paper is to generate discussion and air alternative
scenarios" among regulators and among banks as they adapt their credit risk
models in future, said a co-author of the report, Beverly Hirtle, vice
president at the New York Federal Reserve for banking studies, speaking with
Dow Jones Newswires Wednesday.

Other co-authors were Mark Levonian, a director in the Banking Supervision
and Regulation Division at the Federal Reserve Bank of San Francisco, Marc
Saidenberg, a Bank Supervision officer and Stefan Walter, a vice president
at the New York Fed and David Wright, an assistant director of the Banking
Supervision and Regulation Division at the Board of Governors of the Federal
Reserve System.

When questioned, Hirtle said the study's reference to derivatives and to the
possible need for some banks to tighten correlations among different
instruments of credit risk going forward wasn't based on specific events or
problems in the financial sector.

Derivatives exposures were one factor that made a number of banks and
companies vulnerable to financial shocks during the 1990s, including Barings
Bank, German company Metallgesellschaft, Japan's Sumitomo Bank and the hedge
fund Long Term Capital Management.

"For positions that involve derivatives or that otherwise depend to a
material extent on market factors, standards likely would require integrated
models of market movements and credit exposures," the report said.

Unlike exposures to loans, exposures to derivatives can change more rapidly,
Hirtle said.

Correlating Different Loans Is Key

Hirtle stressed the importance of banks correlating the levels of credit
risk among loans to different borrowers.

When "a loan to a particular borrower has a rating in a bank's internal
ratings system" and the bank then decides that loan is "is better or worse"
than previously, then "if you looked across all of the loans in a bank's
books, that tends to mean other credits are also being downgraded" or
upgraded, Hirtle said.

"That correlation is a very important factor in the risks facing banks" and
one which many banks are already aware of, Hirtle added.

She also gave an example in general terms of how a chain of events might
lower the worth of a credit for a bank.

A firm might be downgraded by a credit ratings agency and they might draw
down on a line of credit from a bank, so the bank's exposure goes up and the
value of the loan goes down, Hirtle said. "That's an example of how three
factors can move against a bank at the same time," she added.

Banks' adaptation of their internal controls to monitor risk will be partly
driven by changes to an international agreement on the subject.

The coming revisions to the Basel Accord, planned for introduction by 2004,
aim to update the way that banks globally account for risk.

The new version of that agreement "will likely incorporate a greater
reliance on banks' internal risk rating systems in assessing regulatory
minimum capital requirements," the Fed paper said.

Derivatives Give Extra Nudge to Falling Nikkei.
Reuters English News Service
By Risa Maeda

A plunge in the Tokyo stock market partly reflects hedge selling related to
equity derivatives products, analysts said on Friday, forecasting more such
sales ahead if the benchmark Nikkei average crumbles further.

Selling related to derivatives products - mainly structured bonds with
returns linked to the Nikkei's level - has gathered steam since the Nikkei
dipped below 13,000, the analysts said.

On Friday it stood at 12,261.80 - a 15-year low.

The so called "Nikkei-linked bonds" have grown especially popular in the
last two years as cash-rich individual investors hunger for returns beyond
current rock-bottom interest rates offered by conventional government debt.

Financial Services Minister Hakuo Yanagisawa said on Friday that the recent
sharp drop in share prices was due in part to trading in equity derivatives
products.

"Equity derivatives products have been accelerating the decline (in Japan's
stock market)," Yanagisawa said.

Nobuaki Kurisu, chief fund manager at Sumisei Global Investment Trust
Management, also cited derivatives -related selling as a factor in the stock
market's plunge, and added that such selling should keep market volatility
high for the time being, making institutional investors hesitant to buy.

Analysts said speculators have been selling Nikkei futures contracts in the
past weeks, trying to nudge the Nikkei average to pre-determined levels that
will in turn trigger hedge-related selling. Many of the trigger points were
believed to be set at or below 12,600.

THE RUSH TO HEDGE

Equity linked derivative bonds, which usually mature in six months to one
year, offer higher interest rates than ordinary bonds if the Nikkei stays
above a pre-determined level.

But once the Nikkei drops below that level, the return at the bond's
maturity will be lower than the initial investment. This causes brokers to
hedge by lightening existing long positions or selling in the market.

"Arrangers of these products have to sell either Nikkei futures or a basket
of Nikkei 225 component stocks to hedge, and there are more trigger points
if the average dips to 12,000 and further to 11,500," said Hirokazu Kabeya,
analyst at Daiwa Institute of Research.

He said up to 100 billion yen ($852.2 million) worth of these bonds have
been launched at each of three different pre-set Nikkei levels - between
13,000 and 12,500, between 12,500 and 12,000 and between 12,000 and 11,500.

Another equity derivatives product which has attracted retail investors over
the past two years has been exchangeable bonds (EBs), often linked with the
stock prices of blue-chip high-tech issues such as Sony Corp and Nippon
Telegraph and Telephone Corp (NTT)

EBs are automatically redeemed if the value of a selected stock rises above
a pre-determined price.

If the value falls below the pre-determined price, as has often been the
case recently, the EBs are redeemed with stock certificates carrying latent
losses, causing many investors to unload the unwanted certificates in an
already bearish market. ($1=117.33 Yen).

House Passes Bankruptcy Reform
BNA - March 2, 2001
By Adam Walsh

Three years in the making, sweeping bankruptcy reform legislation (H.R. 333)
passed the House 306-108 March 1, sending waves of contentment through much
of the financial services sector and the ranks of Republicans, none of whom
voted to oppose the measure.

In the end, 93 Democrats crossed party lines to support the bill, which has
moved through the House before only to be pocket vetoed by former President
Clinton last year. The majority of Democrats opposed the measure, deploring
it for its treatment of lower- and middle-income Americans who depend upon
bankruptcy to achieve a "fresh start."

A Democratic replacement amendment, which Rep. F. James Sensenbrenner Jr.
(R-Wis.) said would "eviscerate" the present bill, was defeated 256-162.
Also, the House moved to defeat a motion by Rep. John Conyers (D-Mich.), the
ranking member of the House Judiciary Committee, to recommit the bill back
to committee. Conyers proposed a measure limiting the marketing of credit
cards to those who are under 21.

"This bill seeks to restore personal responsibility and integrity to the
bankruptcy system and ensure these laws are fair to both debtor and
creditors," Sensenbrenner said following the bill's passage. "Abuse of the
current system--estimated to cost the rest of us approximately $4 billion
each year--is the driving force behind this bipartisan, balanced, and
comprehensive legislation."

In a statement, Edward L. Yingling, executive director of the American
Bankers Association, said ABA "is very pleased to see bankruptcy reform pass
the House today by such a broad bipartisan margin." Saying the current
bankruptcy code permits individuals with higher incomes to walk away from
debts, he called bankruptcy reform "an urgent matter because the system is
broken and needs to be fixed."

In general, H.R. 333 and S. 220, its companion bill in the Senate, seek to
force more bankruptcy filers to file under Chapter 13, which requires some
repayment of debts, instead of Chapter 7, which discharges most debts.

Means Test Main Feature of Measure

Before moving off the House floor, three substantive amendments were made to
H.R. 333, in addition to one technical amendment. The first, which passed by
voice vote and was offered by Rep. Sheila Jackson-Lee (D-Texas), adds a
debtor's monthly public school expenses as an allowable expense under the
bill's means test and puts public school expenses on an equal footing with
that of private school expenses, which is already included in the bill. The
means test is the reform measure's primary feature. It is designed to serve
as a kind of calculation device to determine who can file under Chapter 13
and who can file under Chapter 7.
A second and third amendment also passed by voice vote. Offered by Rep. Mark
Green (R-Wis.), the second amendment would remove the names of children from
bankruptcy filings in order to shield minors from would-be predators. The
final substantive amendment offered jointly by Financial Services Committee
Chairman Michael Oxley (R-Ohio) and the committee's ranking member, Rep.
John J. LaFalce (D-N.Y.) aims to reduce uncertainty and limit systemic risk
in the banking system by simplifying the terms for settling large financial
contracts in the event that one counter-party becomes insolvent.

Former House Banking Committee Chairman James A. Leach (R-Iowa) rose to
support the bill, citing this sole amendment as reason enough to do so. A
similar amendment was made to the legislation during markup in the Senate
Judiciary Committee Feb. 28. Both amendments conform legal definitions
throughout the body of law that cover the bankruptcy of large financial
institutions.

House Majority Leader Dick Armey (R-Texas) rose to support the bill saying
it was a "matter of enormous pride" that the House adopt bankruptcy reform
legislation.

Rep. Mel Watt (D-N.C.) took a different view, alleging that the bill was the
result of special interests. "At the end of the day, this bill will not be
amended because it is a political statement," Watt said on the floor.
"People who wanted this bill knew that they could not get it unless they
exempted the poorest people from the system." Watt referred to a portion of
the bill's means test that exempts wage earners who make less than half of
their state's median income. The establishment of two classes of
debtors--one poorer and one richer--would be the "lasting legacy" of this
bill, Watt said.

Rep. Jerrold Nadler (D-N.Y.) called the bill a "poster child" for campaign
reform legislation. Commenting on the House rule that limited debate on H.R.
333, Rep. Adam Schiff (D-Calif.) said the House was delegating its
legislative responsibilities to the Senate.

The bill now must wait until the Senate passes its version before a
conference can be appointed to work out differences between the two bills
(see related report in this section).

What's a default?
Derivatives Strategy - February 2001
By Barclay T. Leib

Credit derivatives only came into existence in the latter half of the 199
Os, and the documentation behind the product has been lightly tested. But on
September 22 last fall, some credit derivatives traders got a rude wake-up
call. That was the day Bank of America and Chase announced the extension of
$2.8 billion in loans to the troubled Conseco Corp. While this helped
Conseco avoid an immediate bankruptcy declaration and sent the company's
bonds modestly higher, the loan extension was technically deemed a
restructuring. As such, it was also deemed a credit event-which allowed some
fast-footed dealers to deliver long-dated Conseco securities against credit
default swap agreements. Bonds that had previously been trading at a 60
handle could suddenly be tendered at par.

Since credit default events had been rare to that point- Rite Aid, Armstrong
Corp. and school-bus manufacturer Laidlaw being the only three high-profile
examples-several banks were caught completely off-guard by the Conseco
situation. "I think there was a gentleman's perception that this loan
restructuring should not have caused a default trigger, even though the
nitty-gritty of the [International Swaps and Derivatives Association]
document clearly allowed it to be such," notes a credit derivatives broker.
"Even fewer dealers thought it was an appropriate response to get delivered
longer-dated paper when it was a short-term loan that got extended."

Ever since, the usefulness of credit default swaps has been called into
question, and the market has been abuzz with proposed language changes to
the ISDA derivatives document. For all the deal flow these days, it's
suddenly become apparent that many people aren't entirely sure what it is
they've been trading: Is this a product that is supposed to pay off on
credit impairment, or is it a product intended to protect capital in case of
a cataclysmic inability to recover ones principal? Most people believe it
should be the latter, but the Conseco event suddenly raised disparate
interests and views that previously had been shoved under the rug.

Tailor-made contracts with specific restructuring provisions-either included
or not-can always be designed and traded, but suddenly no one knows what the
standard documentation for the interdealer market should be-and that has
regulators and industry groups scrambling for answers. In a research report
called "Restructuring: A Defining Event for Synthetic CDOs," dated December
22, the rating agency Fitch even stated that recent developments may
eventually necessitate changes in its rating criteria for credit derivatives
and the collateralized debt obligations into which they are sometimes
packaged. According to Roger Merritt, managing director in Fitch's global
loan products group, "a narrower definition as to what constitutes a credit
event, or the complete elimination of restructuring, should, in fact,
correspond with a lower incidence of credit protection payments for
synthetic CDOs and credit derivatives.

Important insurance
Credit default swaps stipulate that in one of several possible events-the
declaration of a bankruptcy; the failure to pay interest on a loan or bond,
or the restructuring, repudiation or acceleration of a loan that lowers the
overall creditworthiness of a counterparty-the buyer of the swap may deliver
to the seller any loan or bond extending out to a predefined maturity, and
receive back par value in return. In a market where it can be difficult and
time-intensive for bank portfolio managers to resell an actual loan, this is
an important and attractive product for lenders. Although delivery is
typically based on physical settlement of loans or bonds at their par value,
contracts are sometimes written for cash settlement of par value minus any
recovery from the sale of the asset.

Because of the product, loan portfolio managers on both sides of the
Atlantic have morphed in recent years into active traders, while insurance
company and hedge fund managers gained a new way to position themselves.

Within the credit default swap contract, restructuring is clearly a trigger
event important to many commercial banks. "There are increasing pressures on
banks to mark loans to market, and when a loan is restructured, it is
clearly a loss of value-often a step taken just to avoid an immediate
default," explains Hetty Harlan, a managing director in charge of credit
derivatives trading for BofA's portfolio management group. Harlan thus
considers structurings "de facto" or "prepackaged" defaults and a legitimate
credit event under standard ISDA document.

"Such loans become expensive to hang onto in terms of loan loss reserves or
charge-offs," she explains, "so we need to have some relief at that point to
help mitigate the risk of doing so. Nobody wants to throw a company into
bankruptcy if there's a glimmer of hope that a company may turn around with
time. Banks shouldn't be in a position where they have to push for default
because restructuring does not qualify for relief. That is in nobody's best
interest."

Not everyone in the credit market thinks this issue is quite that simple and
straightforward, however. According to sources close to the Conseco
situation, Bank of America was actually the first institution to start
delivering Conseco paper against long credit default swaps it had previously
purchased. Harlan claims the bank only delivered the restructured loans, but
other sources say BofA delivered the cheapest bonds it could get its hands
on. Merrill Lynch quickly followed. But since Bank of America also had a
hand in the loan extension, some cried foul at the potential conflict of
interest.

"Since the loan was renegotiated on the last day of the contract, BofA
certainly could have considered it a repaid loan, and then extended a new
loan if it had wanted to couch it in such terms," says one dealer. "That
path would have avoided the technical default. In lieu of that, however,
Bank of America termed the extension a restructuring, and quickly delivered
Conseco paper to get it off its books."

"At the end of the day, calling the Conseco loan a restructuring was
probably the commercially normal thing for BofA to have done," ventures
another senior dealer. "It knew the implications of its actions, and
coincidentally was happy to benefit. This is a financial market, not a
social club. You have to have compelling big-picture incentives for people
not to do short-term things in their economic best interest."

Nonetheless, these events highlight a moral hazard issue, and more than a
few fund and insurance sellers of credit derivatives protection felt burned.
After all, how can a bank extend a loan, collect big fees for doing so, then
come crying to the market that they need added compensation under their
credit default swaps? Many think there's something fundamentally wrong here.
Moreover, they argue, if Bank of America had been short credit default swaps
instead of long, might it have potentially followed a different path that
would have once again benefited its own book but potentially left those
actually betting on a Conseco default with less satisfaction?

Slow down, don't move too fast
A s a result of this debate, many U.S.-based dealers last MOctober
petitioned for the complete removal of restructuring as a trigger event in
credit derivatives documentation. Not long after, these dealers started
quoting standard credit derivative contracts with the restructuring language
removed. The broker market became a two-tier market of credit default swaps
"with restructuring" and "without restructuring."

But many again cried foul. "I was very taken aback," says BofNs Harlan, "A
credit default swap without a trigger for restructuring is a much less
valuable instrument to us. By proposing such a change, dealers were just
trying to simplify and provide a quick fix to the problem issue. But this
quick fix would truly eat away at the contract's very usefulness to many
buyers-particularly banks." Since then, Harlan has continued to insist that
restructuring be included in all new contracts she enters into.

European credit derivative participants also balked at the new direction
decided upon by their American counterparts. The European capital markets
contain a much higher percentage of bank loans vs. bond debt, and few
bankers want to lose the protection of a loan restructuring clause as a
trigger for credit default swaps. After all, isn't a loan restructuring just
one step removed from outright bankruptcy? And if people don't recognize it
as such, what's the point of buying credit protection in the first place?

The result to date of this Continental drift: all credit derivatives
transacted between U.S. and European counter-parties continue to include
restructuring in the documentation. But many contracts negotiated solely
between U.S. counterparties do not. The credit derivatives market has
effectively bifurcated itself into two distinctly different products, and
although it hasn't yet reached a critical stage, participants are concerned
that this bifurcation may start to hurt overall market liquidity.

Regulator warnings
If the rancor from European bankers was not already loud I enough, the
global regulatory community also posted a strong stop sign in front of the
"without restructuring" contracts. At the Chase-Derivatives Strategy Credit
Derivatives Conference in mid-November, Federal Reserve Board official
Thomas Boemio threw down the proverbial gauntlet. "If restructuring is taken
out of ISDA documentation," he said, "the Fed will ignore credit derivatives
for purposes of capital relief." There were loud oohs and aahs from the
bankers and dealers in the audience at Boemio's pronouncement. After all,
credit derivatives were born very much to help banks satisfy Fed-mandated
regulatory capital requirements. Take that regulatory relief away, and core
demand for the product would certainly be reduced.

Since that conference, dealers have met many more times to try to hash
things out. ISDA executive director and CEO Bob Pickel traveled to London in
early December to try to smooth the ruffled feathers of European bankers. At
the first of those meetings, held in the stately Fleet Street offices of
Goldman Sachs, several European bankers explained that French regulatory
officials had joined the Fed's Boemio in reiterating that credit derivatives
documentation needs to retain loan restructuring default clauses in order to
be deemed "good offset" to a loan or bond position. Such news caused further
groans from dealing participants across the Atlantic.
"I don't think the Fed or the Commission Banquaire [the French regulator]
have truly thought out their position on this," says one senior credit
derivatives dealer at a major New York investment bank. "Since all bank
loans can only be restructured with the 100-percent approval of those
holding these loans, where's the harm in allowing capital relief at least
until such a restructuring transpires?" In other words, if a bank has a
two-year loan covered by a two-year credit default swap, that bank would
naturally agree to a loan extension only on terms attractive to it. If not
offered such terms, it would simply demand repayment of the loan, even if
such demands forced the company into bankruptcy.

For its part, the Fed seems to have larger issues of fairness and security
in mind. It doesn't want banks to appear to have capital protection after
buying credit default swaps, only to be forced to effectively abandon such
protection by a corporate counterpart playing hardball in a loan
renegotiation process. For example, would a bank give up its collection
rights on a $20 million credit default swap if it had $1 billion in total
loans that could be thrown into the nonperforming category by a bankruptcy
declaration? Without a hard and fast rule that a loan restructuring is a
credit event, it might feel obliged to do so.

A pendulum
Over its short history, credit derivatives documentation has swung from
being overly vague to potentially too specific. ISDA's initial credit
derivative definitions, drafted in 1995 as an addendum to the ISDA master
derivatives document, stipulated that in order to trigger a credit event,
the change in the terms of any loan or bond obligation had to result in
terms that were "materially less favorable to any holders of the
obligation." Many deemed this language too vague and subjective; it tended
to encourage litigation rather than avoid it.

After the 1998 turmoil surrounding Russian paper- which many viewed as a
default, but some called a period of acute market stress-there was general
agreement in 1999 to try to tighten up the documentation language. Very
specific definitions of a credit event were introduced. Even then, some
participants were not fully confident of the new verbiage, but after much
discussion, exhaustion ruled. "People grew so sick of the debate on
restructuring that in the end, it was just easiest to go with the new
definitions and come back to the issue at a later date," says Richard
Kennaugh, co-head of credit derivatives trading at Chase Securities. "At the
time, the 1999 definitions were thought to at least be better than what was
used before."

The 1999 definitions lasted all of 18 months before hitting their first
stumbling block. Now, participants complain that the definition of a credit
default actually became far too precise back in 1999. The Conseco situation
showed how a technical default could trigger a credit derivatives exercise,
but without the debt of the underlying company being truly hurt. At the
center of the snafu is the presumption that, when a bank loan is
restructured, all other corporate debt becomes harmed and thus due and
payable. Events have clearly proven otherwise: not only has Conseco not
fallen into bankruptcy, but its various tranches of debt and bonds continue
to trade at markedly different valuations in the market.

"Almost every major institution wants some change to the restructuring
language now," says Kennaugh. "The status quo is not an acceptable option.
We have to establish a better standard for interdealer business, or risk
less liquidity and a great deal of added basis risk within dealer books."
Although achieving consensus will not be easy, Kennaugh's hope is that some
standard acceptable to investors, hedgers and dealers alike can be
established. Then anything different from that standard will continue to be
available in the market at a premium or discounted price depending upon the
specific language used.

The million-dollar question
So what should ISDA do to set the credit derivatives market back on course?

There are two basic paths-with numerous permutations buried within-the trade
group could take. First, it could try to narrow the definition of
restructuring and limit the deliverability under a restructuring to the
actual loans or bonds in question, or to paper with a shorter tenor than the
restructuring period. The language to accomplish this might require some
tricky drafting, but the goal would be to give sellers of credit derivatives
more solace that they could not be blindsided on a loan restructuring with
the delivery of longer-dated paper, while the buyers of credit default swaps
would still maintain the regulatory ability to tender restructured paper.

This compromise, however, could create a "two-step delivery option." On the
occasion of a loan restructuring, the holder of a credit default swap might
be able to either tender the actual loan affected or a similar short-term
piece of debt, or hold onto the credit derivative for the possibility of an
actual bankruptcy event at a later date. If bankruptcy eventually
transpired, then any paper out to a predefined maturity would be renderable.
In other words, there could be one central contract, but with a new delivery
twist within it.

"That might be a possible outcome," says BofA's Harlan. "But banks are so
conservative, I think almost everyone would exercise the credit derivative
on the first go-round. The pressure just to get troubled debt off one's
books would dominate the potential reward of gleaning even greater value
from the default swap later on."

Others aren't so sure this solution would work. "It might introduce too much
uncertainty into the delivery process. People want to know what they are
going to get, and when," says Hilmar Schaumann, head of credit derivatives
trading for Swiss Re New Markets in New York
At the moment, credit default swaps can be triggered by either the buyer or
seller of the swap, in order not to leave the seller hanging with a
contingent liability. If a narrowed restructuring delivery option is
introduced, it is likely that only the buyer of the default swap would have
the power to decide whether to deliver a specific restructured loan.

Some also argue that, to be completely fair, the party long the credit
default swap and tendering the loan should be forced to hand over any added
fees collected from the restructuring. This is not currently standard
practice.

The inclusion of a "materiality clause" is another possible permutation of
the restructuring language being bandied about. Such a clause could
stipulate that a restructuring only be considered a default event if the
credit rating of the underlying corporate entity subsequently deteriorates
beyond a stated level. Given the large range of potential underlying
credits, however, the specific drafting required here might be even more
difficult for participants to agree on in advance.

The other major alternative would be to continue allowing the two
contracts-one with restructuring and the other without-to simply develop of
their own accord, with Darwinian forces of supply and demand deciding which
is more useful and popular as a core product.

Restructuring would just become another check-box among many on the ISDA
document that people could either use or ignore. Such an approach might
result in more documentation mismatches and basis risk on dealer books, but
it might also keep diverse end-user participants more satisfied.

"ISDA cannot unilaterally tell the market what it should use," says Jeremy
Barnum, head credit derivatives trader at J.P. Morgan. "People will trade
what contracts they want to trade, and we may have to wait to see which
contract that will be. There is a perception that without regulatory capital
relief, the market just dies, but that is patently wrong. Banks are
increasingly a small percentage of the market. If banks still want relief
with restructuring included, that price exists today and will continue to
exist. It just may not be the standard contract anymore.

It is possible, of course, that the market will end up with a refined
restructuring definition and a check-box approach to whether restructuring
is included in a deal or not. Barnum, for one, thinks it is unrealistic to
expect a single contract that unifies bank loan people and bond
investors-two groups with fundamentally different needs and desires. "But
ISDA had the foresight to structure its document in a menu framework where
you can check off prepackaged definitions," he says, "so we're likely just
headed to another check-box solution, maybe with some improved definitions
within."

Whatever ISDA decides, it must do so quickly, before other credit derivative
problems pop up. A year ago, for example, Xerox credit default swaps were
trading at just 30 basis points per annum. Now they are 1,000 basis points
bid, with no offer. Overall Xerox has $17 billion in out standing debt and
is quickly approaching full usage of its bank lines of credit. Separately,
many of its interest rate and equity swap agreements have embedded credit
clauses that  will force it to liquidate these contracts should it be
downgraded below a certain credit rating. It's easy to imagine yet another
situation where Xerox may technically fall into default on certain
obligations, but continue to pay interest on other paper.

It is also noteworthy that Conseco credit default swaps involved only a few
hundred million dollars in notional obligations, while the outstanding
amount of credit derivatives written on Xerox is quite a bit greater.
Lawsuits haven't sprung from the Conseco situation, but they could for Xerox
since there is more money on the table.

"We're just starting to see the world of distressed securities realize that
some of these clauses that many thought didn't matter actually matter a
great deal," says Leslie Rahl, president of Capital Market Risk Advisors.
"Xerox in particular may be a good example of documentation language that
was intended to protect counterparties in a downgrade situation, but now may
have unintended negative consequences if these clauses actually get
triggered."

Rahl acknowledges that credit trigger levels need to be precise, but she
also worries that they introduce a certain amount of systemic risk. "Given
the proclivity of rating agencies to downgrade whole industry sectors at the
same time," she says, " credit triggers are the one thing in my mind that
could cause systemic risk and bring on required knee-jerk reactions.

While ISDA is at it, some also think that language revolving around
"successor corporations" should be examined. ISDA documentation provides
that after a merger, spin-off or other corporate restructuring, a credit
derivative will apply to the surviving corporation that inherits the
majority of the original debt. But what happens to a credit derivative
contract if, say, AT&T gets split into four equal parts with equal debt
loads? Perhaps the credit derivative should really be split into pieces as
well, particularly given the massive debt load to be transferred.
Unfortunately, ISDA must work in a world in which financial nuances wreak
havoc on derivatives contracts originally designed to be relatively simple
and fungible.

"Have you every tried to cash in an insurance policy?" asks Rahl. "If you
haven't read the fine print, it's not always as easy as it should be," she
says. "This is what the credit derivatives market is currently grappling
with." In other words, credit derivatives documentation may have worked
reasonably well in good times, but what happens in bad?

That's an important question given the current spate of earnings warnings
and massive corporate debt loads. If more credit problems flare up soon,
ISDA documentation will likely come under even more scrutiny, with Conseco
simply having been the first warning shot across the bow of the credit
derivatives market. In a litigious society where a presidential election can
be contested for six weeks, don't expect an easy path to defining when a
real default begins and mere credit impairment ends.

Scott Marra
Administrator for Policy & Media Relations
ISDA
600 Fifth Avenue
Rockefeller Center - 27th floor
New York, NY 10020
Phone: (212) 332-2578
Fax: (212) 332-1212
Email: smarra@isda.org


night night.


Please see below.

Debra Perlingiere
Enron North America Corp.
Legal Department
1400 Smith Street, EB 3885
Houston, Texas 77002
dperlin@enron.com
Phone 713-853-7658
Fax  713-646-3490

----- Forwarded by Debra Perlingiere/HOU/ECT on 03/12/2001 02:51 PM -----

	"Webb, Beth" <WebbB@dsmo.com>
	03/09/2001 09:14 AM

		 To: "'Debra.Perlingiere@enron.com'" <Debra.Perlingiere@enron.com>
		 cc:
		 Subject: RE: Enron/GISB Contract

Debra,

I think this just takes us back to your Feb. 22 proposal.  Since the second
sentence seems to be somewhat problematic for Enron, we will withdraw our
request for that sentence.  My only other change would be that the ".1"
appearing after the "4" and the "11" in the last sentence should also be
deleted.

Hopefully this will resolve the issue.

Best regards,  Beth

-----Original Message-----
From: Debra.Perlingiere@enron.com [mailto:Debra.Perlingiere@enron.com]
Sent: Thursday, March 08, 2001 5:33 PM
To: WebbB@dsmo.com
Subject: Re: Enron/GISB Contract

Beth,

We will agree to this version with the following changes:

"Enron recognizes that, when NEGM is acting as Buyer hereunder, NEGM is
purchasing gas on behalf of certain gas companies (the "Repurchasers") to
whom it immediately resells such gas at the Delivery Point(s).  In addition
to any other circumstances for which NEGM is entitled to claim force
majeure
pursuant to this Contarct, Enron agrees that NEGM as Buyer shall be
entitled
to claim force majeure if a Repurchaser purchasing gas from NEGM is unable
to take delivery of gas as a result of an event of force majeure at such
Delivery Point)s).  The parties further agree that the term "Transporter"
when used in this Contract, including, but not limited to, in Sections 4.1.
and 11.1, shall include any company acting in the capacity of a transporter
for any Repurchaser and agree that Section 4.3 of the Contract will apply
to invoices from such Transporters for Imbalance Charges received from such
Transporters to the same extent as if such invoices were received
by NEGM, provided that any such Repurchaser scheduled and nominated the
same
volumes as Enron and NEGM scheduled and nominated on behalf of such
Repurchaser at the Delivery Point(s)."

Please let me have your thoughts.

Regards,
Debra Perlingiere
Enron North America Corp.
Legal Department
1400 Smith Street, EB 3885
Houston, Texas 77002
dperlin@enron.com
Phone 713-853-7658
Fax  713-646-3490

============================================================================Th
is e-mail message and any attached files are confidential and are intended
solely for the use of the addressee(s) named above. This communication may
contain material protected by attorney-client, work product, or other
privileges. If you are not the intended recipient or person responsible for
delivering this confidential communication to the intended recipient, you
have received this communication in error, and any review, use,
dissemination, forwarding, printing, copying, or other distribution of this
e-mail message and any attached files is strictly prohibited. If you have
received this confidential communication in error, please notify the sender
immediately by reply e-mail message and permanently delete the original
message.

To reply to our email administrator directly, send an email to
postmaster@dsmo.com

Dickstein Shapiro Morin & Oshinsky LLP
http://www.legalinnovators.com


BUSINESS HIGHLIGHTS

Oil Products Group
The Enron Global Markets Oil Products Trading Team is at it again.  On
December 27, 2000 they successfully completed four EnronOnline trades with a
total volume of 40 million barrels and a total notional value of
approximately $145 million.

? USGC Heating Oil Crack - 1.3 million barrels/month for calendar year 2001
for a total of 15.6 million barrels and a notional value of $60.84 million;
? USGC Heating Oil Crack - 700,000 barrels/month for 1Q 2001 for a total of
2.1 million barrels and a notional value of $12.18 million;
? USGC Gasoline Crack - 1.2 million barrels/month for calendar year 2001 for
a total of 14.4 million barrels and a notional value of $54.72 million;
? USGC Jet/Heat Swap - 650,000 barrels/month for calendar year 2001 for a
total of 7.8 million barrels and a notional value of $17 million;

This team has completed trades withe the largest volumes and highest notional
values to date on EnronOnline.

Steel Trading
On the steel trading side, we have just hired 4 steel traders, expanding the
steel team to 10 people totaling over 75 years of accumulated steel
experience.  Financial Hot Rolled steel swaps are on EnronOnline. Put and
call options are quoted and physical steel will be launched during the first
quarter of 2001.  The next goal for both originators and traders will be to
"Enronize" the new traders and educate the steel industry on our risk
management tools.

IN THE NEWS

"Enron, once focused on shipping natural gas through pipelines, made huge
strides into new markets in 2000 by developing technology to trade everything
from electricity to Internet data capacity." -- The Year's Top Business
Stories in the Houston Chronicle

NUGGETS & NOTES

"Work hard, Play hard" - Jeff McMahon - President & CEO - EIM

"January 1 the real game has begun...........have you seen our budget!" - Ray
Bowen - MD & COO - EIM

EIM employees to Marsha Schiller - Executive Assistant and floor coordinator
for EIM , " I need a desk!"  I don't want to sit in the window!"

Congratulations are in order for Tim Belden, VP/West Power Trading and his
wife Sue.   They started off the New Year celebrating the birth of their son,
Jackson Fletcher Belden.  Jackson arrived, December 28, 2000, weighing 8lbs
10oz, 20 inches long.  Mother, baby, and father are doing well.

WELCOME

New Hires ENA/EIM/EGM
ENA ) Alexandra Villarreal

Transfers ENA/EIM/EGM
ENA ) Frank Vickers

LEGAL STUFF

The information contained in this newsletter is confidential and proprietary
to Enron Corp. and its subsidiaries.  It is intended for internal use only
and should not be disclosed.


---------------------- Forwarded by Drew Fossum/ET&S/Enron on 01/24/2001
03:16 PM ---------------------------

Drew Fossum
01/24/2001 10:42 AM
To: Michael Moran/ET&S/Enron@ENRON
cc:

Subject: Re: Review Forms

Good point.  I'll put it in the forma nd be sure to discuss with her.  df

Michael Moran
01/22/2001 04:58 PM
To: Drew Fossum/ET&S/Enron@ENRON
cc:

Subject: Re: Review Forms

These look good to me. My only question relates to Susan Scott and the
suggestion that she sometimes bends over too far to satisfy her clients and
thus might lose here effectiveness as the lawyer. This point is not
mentioned. If you plan to cover this in the sitdown that is fine. I think it
is a point that deserves mentioning to her.


This is a very tough time. I honestly don't know what the hell is going on. I will let you know.

Thanks,
Andy


To discuss this outline and our issues list, can people attend a 2pm Houston Time call.  The meet and confer may be on-going, but maybe either Jeff or Sue can jump off.

Linda Noske will be sending out a call-in number.

Thanks,

Jim

 -----Original Message-----
From: 	Steffes, James D.
Sent:	Monday, October 29, 2001 8:04 AM
To:	Dasovich, Jeff; Mara, Susan; Tribolet, Michael; Mellencamp, Lisa; Curry, Wanda; Williams, Robert C.; Mike Day (E-mail)
Cc:	Shapiro, Richard; Sanders, Richard B.; Sharp, Vicki
Subject:	Proposed SCE Negotiation Strategy

Following last week's meeting, here is my recommendation on how to proceed with SCE.

1.	Form Enron Negotiation Team

	My recommendation is to use the same team we used with PG&E + Jeff Dasovich.  My understanding was that Lisa M. was the lead negotiator - I would not change this.  Jeff should only be there to make introductions.

2.	Meet & Confer (10/29)

	Sue Mara and Jeff Dasovich will listen and report back to everyone on what happens.

3.	Reformed Stipulation

	I would propose that we take a wait and see approach to this document.  Based on Dasovich's idea to get together with SCE on Thursday, maybe let this ride.

4.	Meeting

	My understanding is that (Jeff D. please correct) SCE can meet with us this Thursday.  Can everyone make it that needs to be there?  Probably meet in California.  We should put the laundry list on the table.

Please let me know what else we need to discuss or if anyone disagrees.

Thanks,

Jim


Anita:

I believe that Zimin was the one that asked me to bring him in.  Maybe you
can check with him as to whether there is anyone else he wants you to
include.

Thanks!

Anita DuPont@ENRON
07/31/2000 10:26 AM
To: Vince J Kaminski/HOU/ECT@ECT
cc: Shirley Crenshaw/HOU/ECT@ECT
Subject: Interview with Rabi S. De on Friday, August 11, 2000

Vince:

Shawn Grady from HR Staffing called me and asked me to schedule interviews
with the people in Research.  He also mentioned that I should email you to
find out if you want anyone from any other department to interview Rabi.  I
am currently scheduling interviews with you, Krishna, Grant, Stinson, Zimin
and Vasant.  Is their anyone else in Research that you want to interview
him?  Please get back to me and I will set up the appts.  Thanks.  Anita


John,

The gas is off TW at West Texas Pool.  It is between 42,500 and 51,000 MMBtu
per Month.  Starting Oct 1, 2001 and Ending May 1, 2010.  It is an expansion
of the current Gallup deal.

Thanks
Peter Bennett


Stan:

Please see attached memo for talking points on MTBE and pipleine safety
legislation that can be used in conversations with various members of
Congress who will be in attendance at tonight's pre-baseball game receptions.

Please call if you have any questions or require additional information.
Thank you.

Jeff Keeler


The EnronOnline Audit is scheduled to begin the week of June 4, 2001 and is expected to take approximately two months to complete.  The audit will be executed by Arthur Andersen and led by Jennifer Stevenson and Russ Bouwhuis.

We will schedule an opening meeting with you the week of  June 4, 2001 to discuss audit scope and any concerns or suggestions you may have.

The objective of the audit will be to determine whether procedures and controls exercised over activities are adequate and operating effectively.

Results of the audit will be discussed with you and other appropriate personnel both during the audit and at the audit closing meeting.

We will endeavor to conduct this audit in a manner that will minimize interruption of your normal business activities and we look forward to working with you and your personnel. Please call me at x5-4554 if have any questions.

Mechelle Atwood
Director, Enron Assurance Services
Enron Wholesale Services
713.345.4554; Location:  EB2383
Mechelle.Atwood@enron.com


ok next tuesday or wednesday will work, e-mail me on monday. i may have to
go to NY citybut right now i have no plans.

my office number is 281-296-7080 ext.221

----- Original Message -----
From: <Benjamin.Rogers@enron.com>
To: Charles Costenbader <charles@capstoneenergy.com>
Sent: Wednesday, October 25, 2000 6:00 PM
Subject: Re:

>
> Charlie:
> Sorry for the delay with the e-mail, I just got back into the office from
> traveling.  We are working hard to sell these assets before year-end -
> they're a beast.  This Friday does not look good for lunch, but I think
> Tuesday or Wednesday of next week works.  I hope this works for you as
> well.  Talk to you soon.
> Regards,
> Ben
>


----- Forwarded by Shonnie Daniel/HOU/ECT on 09/13/2000 07:57 PM -----

	"HAL HALTOM" <HALTH@andrews-kurth.com>
	09/13/2000 07:51 PM

		 To: <Shonnie.Daniel@enron.com>
		 cc:
		 Subject: Project 20/20 - Revised PSA

Attached are clean and blacklined copies of the Purchase and Sale Agreement
for Project 20/20.

 - HOU_562951_10.DOC
 - BL ENA PSA.doc


Effective Monday, September 17, we will begin our ETS Staff Meetings at 8:00AM to 9:30AM in 49C2 so that Stan will be able to attend the EGAS Staff Meetings at 9:30AM and then the Lay/Whalley Staff Meetings at 11:00AM.    This will be effective from here on out.  Please adjust your calendars accordingly.

Let me know if you have any questions.

P.S.    I apologize if you might have received a blank e-mail from me yesterday; please disregard!

Cindy Stark
Executive Assistant to Stan Horton
Tel:   713/853-6197
Fax:  713/345-7047
Cindy.Stark@enron.com


As you all know, the flag football game was called off.     The current
proposed structure is to give 8 tickets to Enron and 8 to AC.  The team which
raises the most (by 5 pm, Monday 11-19) for each company will be awarded the
tickets.  And the game will be rescheduled for sometime in the beginning of
December.

I'm very disappointed with the way this whole situation has been mishandled.
I can't speak as to what occurred on the Anderson side, but these are my
thoughts on this situation.

1.  All the Enron captains (including the Aggies) agreed to play Saturday
regardless of the weather.  I confirmed that we would be on as rain and cold
weather were very likely to occur.  Had the other captains decided to not
play in the cold rain, we could have rescheduled the game for  Sunday or an
alternative day.

2.  My understanding is that the Aggies called the game  (Billy Lemmons and
Ted Bland) and then changed the awarding of the tickets in way that directly
benefitted the Aggie teams.   Correct me if I'm wrong, but neither Billy nor
Ted were out at the field to judge the weather conditions prior to calling
off the game.  Nor were the captains contacted for their input.   The rules
have been abitrarily changed in mid-stream to the advantage of the Aggies and
this is grossly unfair.   The top 2 fund raisers for the Enron Aggie teams
were to be awarded footballs that were autograped by the Aggie football
team.   Given this additional  incentive, it's not surprising that they
raised more money than the UT teams  (by my unofficial estimates).  By one
estimate who was familiar with the aggie fund rainsing efforts, one team
raised about $2,000 and the other raised about $5,000.

So what do we do about this situation?   It's up to you to decide if you want
to play  in the rescheduled tournament.  Personally, I don't see much point
nor motivation to play.  It surely won't be for bragging rights, as the real
UT/a&m game will have already occurred.  In addition, I think it would be
appropriate to give the people who donated funds the option to get their
money back.   The situation that now exists is not what I raised money for.

I want to thank you all for the work and effort you put forth for this event,
it's unfortunate that it wasn't handled better.

I will be out all of next week.  Leave me a voicemail if you need to speak
to  me.   I will have your shirts on the Monday following Thanksgiving.


Presentations for Monday's 2-3 meeting in 44C1.  Please let me know if you
have changes prior to that meeting. thanks.


Bob,

The estate DPR is ready and will be run on Wednesday and Monday mornings.  Thomas Underwood will be taking over that task from me.

Kam


[IMAGE]
[IMAGE]	[IMAGE]   [IMAGE]  [IMAGE]  Buy 1, Get 2 @ $2.99! (plus shipping and handling)  details   [IMAGE] [IMAGE] expiration: 12/5/01 	[IMAGE]

[IMAGE]	 [IMAGE]    Dear Dina, 11.12.01 [IMAGE]  Sum 41 cracked the charts this year with Fat Lip -- check out how the party started with their driving debut "Half Hour Of Power."    [IMAGE] Start Shopping Now  [IMAGE] 	 [IMAGE]  [IMAGE]  [IMAGE]    Sum 41   Half Hour of Power    listen[IMAGE]  [IMAGE] [IMAGE]  It?s back -- the killer debut from the smart-ass crew that gave you a Fat Lip! Pumped full of massive melodies, pounding drums and shredding guitar, songs like Machine Gun, headbanger Grab The Devil By The Horns & Another Time Around prove that Sum 41 knew how to deliver powerful punk pop from day one. 	[IMAGE]

[IMAGE]	[IMAGE]	[IMAGE]

		[IMAGE]	    Pete Yorn   Musicforthe morningafter  [IMAGE]  [IMAGE]   Guitar-driven rawness and Brit-pop hooks reign on the hit Life On A Chain, On Your Side & For Nancy.      Depeche Mode   Exciter  [IMAGE]  [IMAGE]   Dig deep into 13 exquisite late-night anthems including Dream On, The Dead Of Night & I Feel Loved.      Stabbing Westward   Stabbing Westward  [IMAGE]  [IMAGE]   Industrial-metal moshers mix the alt attitude of Alice In Chains with NIN?s drive on So Far Away, I Remember and The Only Thing.  [IMAGE] [IMAGE]    Saliva   Every Six Seconds  [IMAGE]  [IMAGE]   Skynyrd-like boogie & Bizkit?s banging fuse on the hit Your Disease and rapcore of Click Click Boom.      U2   Greatest Hits 1980-1990  [IMAGE]  [IMAGE]   Get your Irish up with 14 classics: Pride, Desire, I Will Follow, Sunday Bloody Sunday, Bad & more.      Soil   Scars  [IMAGE]  [IMAGE]   Start the pit with the Pantera-style fisticuffs of Halo, then groove to Breaking Me Down and Black 7.  [IMAGE] [IMAGE]    Molly Hatchett   Greatest Hits  [IMAGE]  [IMAGE]   15 big, bad ?n bold cuts! Includes open-road classic Flirtin' With Disaster, Whiskey Man & Gator Country.      Joe Jackson   Look Sharp (Remastered)  [IMAGE]  [IMAGE]   New Waver?s dynamic debut features Is She Really Going Out With Him & Sunday Papers.      Bon Jovi   One Wild Night  [IMAGE]  [IMAGE]   BJ goes global with live versions of Wanted Dead Or Alive, It?s My Life, Bad Medicine and more.  [IMAGE]
[IMAGE]	 [IMAGE]  ArtistAlbumselection#    [IMAGE] [IMAGE]  Alternative    Classical    Christian    Country    Dance    Gospel    Hard/Metal    Jazz/Blues    Latin    Light & Easy    New Age/World    R?    Rap    Rock    Soft Rock/Pop    Soundtracks    Holiday   [IMAGE] [IMAGE]  Bestsellers    Bargain Titles    Web Extras    50 Music Milestones    Deluxe Box Sets    Greatest Hits   		 [IMAGE]  Gladiator, The Matrix, Meet the Parents, Charlie?s Angels, Pay It Forward and many more! Get 4 DVDs for 49 cents each (plus shipping & handling)!   Click here  to join our DVD club.  So stop by and check out the new ColumbiaHouse.com. From the latest hits to Spotlights on your favorite artists, exclusive sweepstakes and more, it will take your membership to a whole new level!  Thanks,  [IMAGE]    This Columbia House New Releases Mail is an exclusive service for Club members. If you wish to unsubscribe to this email, click here  to update your email preferences or reply to this message with "unsubscribe" in the subject line. You are subscribed as lavorato@enron.com.   To ensure that the "unsubscribe process" has been completed successfully please allow 2 weeks. We do apologize for any interim emails that are received while we are updating our records.   Thank you for shopping at ColumbiaHouse.com.    f9oj3lp2l5aj4cj03g9a   Copyright ? 2001 ColumbiaHouse.com All rights reserved.    	[IMAGE]

[IMAGE]