FYI
	Enron Capital & Trade Resources Corp.

	From:  "Pergher, Gunther" <Gunther.Pergher@dowjones.com>
     12/18/2000 01:03 PM

To: undisclosed-recipients:;
cc:
Subject: DJ California Suit Claims Gas Cos Conspired To Fix Prices, DJ La
wmakers Ask Justice Dept To Probe Calif Pwr,Natural Gas

17:45 GMT 18 December 2000 *DJ Class Action Suit Filed In California Vs
Natural Gas Cos
(MORE) Dow Jones Newswires 18-12-00
1745GMT
*DJ California Suit Claims Gas Cos Conspired To Fix Prices
(MORE) Dow Jones Newswires 18-12-00
1746GMT*DJ California Suit Names Sempra, El Paso Gas As Defendants
(MORE) Dow Jones Newswires 18-12-00
1752GMT Alleges Cos Agreed To Monopolize Mkt
LOS ANGELES (Dow Jones)--Two lawsuits seeking class action status were filed
in Los Angeles Superior Court Monday alleging three major energy companies
conspired to monoploize the natural gas market in southern California and
artificially increase prices and create shortages.
The complaints name Sempra Energy (SRE) and its affiliates San Diego Gas &
Electric Co. and Southern California Gas, along with El Paso Natural Gas
Corp. as defendants.
The complaint claims the companies were involved in "massive conspiracy" and
together agreed to artificially constrict the supply of the commodity by
killing natural gas pipeline projects. The complaint alleges unfair
competition and unlawful business practices.
According to the complaint, top executives of SoCal Gas, SDG&E and El Paso
Natural Gas Corp. met at a Phoenix hotel in 1996 and "fearing a new era of
open competition and lower (natural gas) prices" the executives "gathered
secretly to hatch a conspiracy to dominate the unregulated aspects of the
natural gas and electricity markets."
"At the meeting these three companies illegally agreed not to compete
against each other in Southern California and Baja California natural gas
delivery markets," the complaint states. "They also conspired to prevent
other pipelines from being built that would have competed against them and
lowere natural gas prices in these markets."
The defendants have not yet seen a copy of the complaint and were unable to
comment.
(MORE) Dow Jones Newswires 18-12-00
1832GMT Plaintiffs Seek Billions In Damages
The lawsuit claims that El Paso Natural Gas and Sempra and its afilliates
conspired to prevent other pipelines from being built that would have
competed against them resulting in lower natural gas prices.
The plaintiffs are seeking billions of dollars in damages.
The complaint alleges that in 1992 Tenneco Inc. completed the Kern River
Pipeline, which transports natural gas from Wyoming to Kern County, Calif.
Tenneco then began to plan for additional pipelines that would bypass SoCal
Gas and SDG&E pipelines and deliver gas directly to consumers in San Diego,
Los Angeles, Imperial Valley and the Baja Peninisula.
One of those bypass pipelines - the Altamont pipeline -would have
transportecd gas from Canada to the northern end of the kern River pipeline
in Wyoming. Tenneco envisioned that low cost Canadian gas would be carried
to Southern California and Baja customers, according to the complaint.
El Paso acquired Tenneco in June 1996, shortly before California opened up
its electricity market to competition.
According to the complaint, three months later SoCal Gas, SDG&E and El Paso
met at the Embassy Suites Hotel near the Phoenix airport and began to hatch
a conspiracy that the energy companies would eliminate Tenneco's pipeline
projects and continue to dominate the natural gas market via SoCal Gas being
the sole bidder on the Baja pipeline.
SoCal Gas then allegedly agreed to refrain from competing with El Paso on a
pipeline project in Mexico.
"The transportation constraints which the conspirators created eliminate
competition from Canadian gas, radically drove up the price of gas ... (and)
electricity ...and discouraged the building of new electric generation
plants to serve the California market," the complaint states.
Natural gas in California has spiked to a record $60 per million British
thermal unit last week and still hovers at around $20/mbtu, compared with $3
a year ago.
Sempra Energy spokesman Art Larson said his company has not yet been served
with a copy of the complaint, but "any claims that (Sempra) violated
antitrust or other laws are completely false."
"On Dec. 7, SDG&E filed for emergency relief asking federal regulators to
impose a price cap on natural gas transportation prices to the California
border that if approved would lower costs for California gas customers,"
Larson said.
Last Friday, California Gov. Gray Davis asked state Attorney General Bill
Lockyer to investigate whether natural gas suppliers have manipulated the
market in an effort to drive up prices.
-By Jason Leopold; Dow Jones Newswires; 323-658-3874;
jason.leopold@dowjones.com
   (END) Dow Jones Newswires  18-12-00
2001GMT

20:33 GMT 18 December 2000 DJ Lawmakers Ask Justice Dept To Probe Calif
Pwr,Natural Gas
WASHINGTON (Dow Jones)--Two California lawmakers have asked the U.S.
Department of Justice to investigate "potential collusion" in the state's
highly volatile electricity and natural gas markets.
The lawmakers - U.S. Sen. Barbara Boxer, D-Calif., and John Burton,
president pro tempore of the California State Senate - asked Attorney
General Janet Reno to take "immediate steps" to investigate California
markets for electricity and natural gas.
"We are concerned that market power is being abused by generators in the
electricity market to inflate prices and gouge consumers," the letter said.
The lawmakers questioned whether repairs or maintenance were truly behind
why a quarter of the state's generating plants weren't operating in recent
weeks, contributing to the latest power-supply emergency in California.
"Some have suggested that one reason for (power) plant shutdowns is that in
some cases companies are selling natural gas they would otherwise use to
operate their plants at exorbitant prices on the natural gas market," the
lawmakers said.
"The Department of Justice must act to ensure that collusion and other
unlawful acts are not contributing to the crisis in California's power
markets," they told Reno.
The probe must begin now, despite the pending change in presidential
administrations next month, to set "a strong example of leadership for the
new attorney general to follow," Boxer and Burton wrote.
There was no immediate response from the Justice Department to the letter,
which was dated Friday.
"I'd be very surprised if the Justice Department found any gaming or
violation of the law," said Lynne Church, president of the Electric Power
Supply Association, whose members operate deregulated power generation
facilities in California.
Any DOJ investigation would be on top of probes already under way by the
U.S. Federal Energy Regulatory Commission, the state of California and
others, she said. "I'm not too nervous about that one," Church said of the
prospect of DOJ joining the fray.
Neither the California Independent System Operator nor officials in the
Pacific Northwest found any evidence of price-gouging in separate
investigations they conducted, Church noted.
Power prices skyrocketed in California because of the flawed market
structure state officials imposed, she said.
"There's no doubt those markets went higher than they would have if that
structure were not in place," she said. "But the fact that (power producers)
made a lot of money doesn't mean they violated the law."
By Bryan Lee, Dow Jones Newswires; 202-862-6647; bryan.lee@dowjones.com
   (END) DOW JONES NEWS  12-18-00
03:33 PM Copyright (c) 2000, Dow Jones & Company Inc

G_nther A. Pergher
Senior Analyst
Dow Jones & Company Inc.
Tel.  609.520.7067
Fax. 609.452.3531

The information transmitted is intended only for the person or entity to
which it is addressed and may contain confidential and/or privileged
material.  Any review, retransmission, dissemination or other use of, or
taking of any action in reliance upon, this information by persons or
entities other than the intended recipient is prohibited. If you received
this in error, please contact the sender and delete the material from any
computer.


Thought you might be interested in these two changes.  Mary has actually been
out of the office since late February.  All of her global database
responsibilities were transferred in late 2000 to James Scribner and his
team, under Beth Apollo.  Mary's effectiveness on CommodityLogic had been
lessened over time, and beginning with her absence in February I have relied
on my business leads (Bob Superty, Kim Theriot and Mechelle Stevens) for
their evaluation of the NomLogic, ConfirmLogic and InvoiceLogic modules.
--Sally
---------------------- Forwarded by Sally Beck/HOU/ECT on 04/18/2001 04:06 PM
---------------------------

	Enron North America Corp.

	From:  Sally Beck                           04/18/2001 08:20 AM

To: Sheri Thomas/HOU/ECT@ECT, Bob M Hall/NA/Enron, Peggy
Hedstrom/CAL/ECT@ECT, Brenda F Herod/Enron@EnronXGate, Leslie
Reeves/HOU/ECT@ECT, Stacey W White/HOU/ECT@ECT, Beth Apollo/HOU/ECT, Brent A
Price/HOU/ECT, Mike Jordan/LON/ECT@ECT, Patti Thompson/HOU/ECT@ECT, Greg
Piper/Corp/Enron, Richard Causey/Corp/Enron@ENRON
cc: Hector McLoughlin/Corp/Enron, Frank De Jesus/Enron@enronXgate, Ryan
Seleznov/Corp/Enron, Robert Jones/Corp/Enron
Subject: Management Team Changes

Mary Solmonson has made a personal choice to resign from Enron.  It is with
regret that I have accepted Mary's letter of recommendation.  Mary has
contributed greatly during her tenure at Enron, particularly in the
development of global information that has been critical in supporting our
effective systems development and information gathering.  I do appreciate
Mary's personal decision, however, and I know that you will join me in
wishing Mary well.

Also effective April 16, we have made a realignment within Enron Net Works of
the group led by Sheri Thomas.  Sheri will now report directly to Andy
Zipper, who leads EnronOnline.  The Operations Product Control Team in its
early stages was focused primarily on making our transition to EnronOnline a
smooth one for operations.  Much time was spent initially on the bridges
necessary between EnronOnline and our legacy systems.  The role of the team
has evolved today to one that is intimately involved in the day-to-day
operations of EnronOnline.  With this evolution, it makes sense to have
Sheri's team as an integral part of the larger EnronOnline team.  Sheri's
team will continue to support other e-commerce initiatives, such as
Clickpaper, DealBench and CommodityLogic, so that we can leverage the
experience of her team and avoid duplication of internal infrastructure.
Sheri, Andy and I met with Sheri's team yesterday to announce this
organizational realignment.  Sheri has done a great job of leading the
Product Control Group over the past 14 months.  Sheri is committed to see
that her team continues to work closely with Operations to ensure that any
changes in Enron's e-commerce businesses that may impact trading operations
are shared with us.  We look forward to continuing to work closely with Sheri
and her team.


I'm trying to locate a copy of the contract to purchase the 501D5A turbine to
see if we need to be aware of any issues in the contract. Do you have a
copy?  If not, I can probably get a copy from EECC.

Thanks,

Kay


Heather Danz
1708A Solomon Road
Charlottesville, VA 22901
hddanz@yahoo.com

To Mr. Ken Lay,

I'm writing to urge you to donate the millions of dollars you made from selling Enron stock before the company declared bankruptcy to funds, such as Enron Employee Transition Fund and REACH, that benefit the company's employees, who lost their retirement savings, and provide relief to low-income consumers in California, who can't afford to pay their energy bills.  Enron and you made millions out of the pocketbooks of California consumers and from the efforts of your employees.

Indeed, while you netted well over a $100 million, many of Enron's employees were financially devastated when the company declared bankruptcy and their retirement plans were wiped out.  And Enron made an astronomical profit during the California energy crisis last year.  As a result, there are thousands of consumers who are unable to pay their basic energy bills and the largest utility in the state is bankrupt.

The New York Times reported that you sold $101 million worth of Enron stock while aggressively urging the company's employees to keep buying it.  Please donate this money to the funds set up to help repair the lives of those Americans hurt by Enron's underhanded dealings.

Sincerely,

Heather Danz


What up, man!

Things have been extremely busy during the past 90 days or so.  We are
preparing to deploy on 7 Jan.  I will be home with Tina from the 20th to the
27th.  I guess Jimi is having an engagement party on the 21st.  I would love
it if you could make it to that.  You will need to talk to Jim for details.

Yes, I am engaged.  Crazy, huh?  It feels good though.  Tina and I are
happy.  More to follow whence I see ya.

I have to run, but just wanted to let you know I was hanging in there and
doing well.

Peace, Howie

-----Original Message-----
From: Richey, Cooper [mailto:Cooper.Richey@ENRON.com]
Sent: Wednesday, December 05, 2001 1:02 PM
To: HowardMJ@2MAWBFT.usmc.mil; mjhow55@islc.net
Subject:

hey dude-

i hear you're engaged!  congratulations.  what's going on?  i haven't
been in touch with anyone in the last year or so...  things have been
going well in canada, but my company is melting down, so not sure what
i'm going to be doing and probably won't know for awhile.  i'm going to
be home dec 16 - jan 3.  are you going to be around?  looking forward to
catching up ...

coop

**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate and
may contain confidential and privileged material for the sole use of the
intended recipient (s). Any review, use, distribution or disclosure by
others is strictly prohibited. If you are not the intended recipient (or
authorized to receive for the recipient), please contact the sender or reply
to Enron Corp. at enron.messaging.administration@enron.com and delete all
copies of the message. This e-mail (and any attachments hereto) are not
intended to be an offer (or an acceptance) and do not create or evidence a
binding and enforceable contract between Enron Corp. (or any of its
affiliates) and the intended recipient or any other party, and may not be
relied on by anyone as the basis of a contract by estoppel or otherwise.
Thank you.
**********************************************************************


The following is the manual entries that we need booked for May production:
Transport Expense to Texas Intercompany - ($1,721,448)
Transport Revenue to Ed Intercompany - $1,721,448
Transport expense to Texas - Accrual ($198,000)
Accrual income to Sharpe - $198,000

Please call with any questions.
PL


Return-Path: <Julianna.Grisham@Halliburton.com>
Received: from  rly-yc05.mx.aol.com (rly-yc05.mail.aol.com [172.18.149.37])
by air-yc03.mail.aol.com (v77.14) with ESMTP; Mon, 11 Dec 2000 09:39:06 -0500
Received: from  housmtp100.halnet.com ([32.97.215.250]) by
rly-yc05.mx.aol.com (v77.27) with ESMTP; Mon, 11 Dec 2000 09:38:48 -0500
Received: from gloconn001.halnet.com (GLOCONN001 [34.226.128.21]) by
housmtp100.halnet.com with SMTP (Microsoft Exchange Internet Mail Service
Version 5.5.2652.39) id YQ69RATY; Mon, 11 Dec 2000 08:05:03 -0600
Received: by GLOCONN001 with Internet Mail Service (5.5.2653.19) id
<XNWCT8FP>; Mon, 11 Dec 2000 08:04:29 -0600
Message-ID:
<88692DB16951D211A2EE00805F9F305605EF2F21@houexch010.halexchange.halnet.com>
From: Julianna Grisham <Julianna.Grisham@Halliburton.com>
To: "'Ashlea Stuart'" <ashleastu@aol.com>,        "'Ashley Baxter'"
<Ashley.Baxter@enron.com>,        "'Autumn Hugo'" <ahugo@fna.com>,
"'Brandee Kirkham'" <brandeekirkham@hotmail.com>,        "'Candace Allen'"
<candace_m_allen@reliantenergy.com>,        "'Casey Casseb'"
<caseycasseb@hotmail.com>,        "'Charlie Wemyss'"
<cgwemyss@equilon.com>,        "'Dad'"
<Rod.Grisham@RevexTechnologies.com>,        "'David Thomas - Work'"
<david_thomas@bmc.com>,        "'Emily Dreiling - work'"
<emily.dreiling@ey.com>,        "'Ivy Culberson'"
<iculberson@yahoo.com>,        "'Jamie Martin'"
<jamimartin@deloitte.com>,        "'Jen Bowles'"
<jkbowles@hotmail.com>,        "'Jennifer Wright'"
<j.wright@thehiringspot.com>,        "'Jenny Scheifley'"
<jscheifley@networkoil.com>,        "'Jocelyn Grisham'"
<jocelyngrisham@hotmail.com>,        "'Kim Fugler'"
<kfugler@yahoo.com>,        "'Lauren Dietz'" <laurendietz@aol.com>,
"'Libbie Woolsey - work'"  <libbie.woolsey@sbti.com>,        "'Maggie Duffy'"
<Maggie.Duffy@AIG.com>,        "'Mavis Webb'" <mavis.webb@rhic.com>,
"'Michelle Buquoi - Work'"  <michelle.r.buquoi@us.pwcglobal.com>,
"'Niki Stockton'"  <kstockto@houstonisd.org>,        "'Rou Chandler'"
<rou.chandler@staff-leasing.com>,        "'Sherry Thomas'"
<sthomas@waller.isd.esc4.net>,        "'Steven Palazzo'" <recon21@gateway.net>
Subject: FW: Just a few tips for Christmas eating
Date: Mon, 11 Dec 2000 08:02:57 -0600
MIME-Version: 1.0
X-Mailer: Internet Mail Service (5.5.2653.19)
Content-Type: text/plain; charset="iso-8859-1"

>
>  Just a few tips for Christmas eating.
>
>
>         We all know that the true meaning of Christmas is not crass
>     Commercialism  -- but few realize how important food is. So here are
> some tips
> On Holiday eating:
>
>         1.) About those carrot sticks:  Avoid them. Anyone who puts
>  carrots on  a  holiday buffet table knows nothing of the Christmas
> spirit. In
> fact, if  you  see carrots, leave immediately. Go next door where they are
> serving rum balls.
>
>         2.) Drink as much eggnog as you can ...and quickly (I
> recommend A&E, the king of eggnog). Like fine scotch, it is rare. You
> can't find
> it any other  time of the year but now. So drink up. Who cares that it has
> 10,000 calories in every sip? It's not as if you're going to turn into an
>  eggnogaholic or something. It is a treat. Have one for me. It's later
> than you
> think.  It's Christmas.
>
>         3.) If something comes with gravy, use it. That's the whole
> point of gravy. Gravy does not stand alone, it is one of the basic food
>  groups.
>     Pour it on. Make a volcano out of your mashed potatoes. Fill it
> With  gravy. Eat the volcano. Repeat!
>
>         4.) Speaking of mashed potatoes, always ask if they're made
> with skim milk or whole milk. I won't even mention the dreaded
> instant ones.  If it is not whole milk, pass. Why bother? It's like buying
> sports
> car with  an  automatic transmission.
>
>         5.) Do not have a snack before going to a party in an effort to
> control your eating. The whole point of going to a Christmas party is to
> eat other people's food for free. Lots of it. Hello? Remember college?
>
>         6.) Under no circumstance should you exercise between now and New
> Year's.  You can do that in January when you have nothing else to do.
>   This is the time for long naps, which you'll need after circling the
> buffet
> Table while carrying a 10-pound plate of food and that vat of eggnog.
>
>         7.) If you come across something really good at a buffet table,
>     like frosted Christmas cookies in the shape and size of Santa,
>  position yourself near them and don't budge. Have as many as you can
> before becoming  the   center of attention. They're like a beautiful pair
> of shoes. You
>  can't leave  them behind. You're not going to see them again.
>
>         8.) Same for pies: Apple, pumpkin, mincemeat ... have a
> slice of  each (you don't want to hurt the hostess' feelings). If you
> don't like mincemeat, have two apples and one pumpkin.  Always have three.
> When else do you get to have more than one dessert? Labor Day?
>
>         9.) Did someone mention fruitcake? Granted, it's loaded
> with the mandatory celebratory calories, but avoid it all costs. I mean,
> have some standards, mate.
>
>         10.) And one final tip: If you don't feel terrible when you
> leave the party or get up from the table, you haven't been paying
>  Attention.
>     Reread tips. Start over.
>
>     But hurry, Cookieless January is just around the corner.
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>


Enron Fights To Find Near-Term Sellers,But Still Trading
Dow Jones Energy Service, 11/27/01
USA: UPDATE 3-Dynegy says in talks on Enron merger structure.
Reuters English News Service, 11/27/01
RPT Dynegy confirms in talks on structure of Enron merger deal
AFX News, 11/27/01
Merger Traders Wary Even If Enron, Dynegy Cut New Terms
Dow Jones News Service, 11/27/01
Dynegy confirms in talks on structure of Enron merger deal
AFX News, 11/27/01
STOCKWATCH Enron slightly higher on hopes for new deal price
AFX News, 11/27/01
IN THE MONEY: Hedge Funds Say Yes To New Enron Terms
Dow Jones News Service, 11/27/01
Dynegy Confirms Talks On Enron Deal Structure - Source
Dow Jones News Service, 11/27/01
USA: Enron shares down despite talk of new Dynegy deal.
Reuters English News Service, 11/27/01
Enron Credit Rating to Remain Unchanged for Today, Moody's Says
Bloomberg, 11/27/01

Enron Turned Down by Investors Alwaleed, Blackstone, Carlyle
Bloomberg, 11/27/01

Liberty Funds Analyst Paik Comments on Dynegy and Enron Talks
Bloomberg, 11/27/01

A.G. Edwards Analyst Heim Comments on Dynegy and Enron Talks
Bloomberg, 11/27/01

Commerzbank Analyst Meade Comments on Dynegy's Talks With Enron
Bloomberg, 11/27/01

ENRON SHARES RECOVER FROM A.M. SLUMP
CBS.MarketWatch.com, 11/27/01

Enron In Free Fall
Forbes.com

Enron Fights To Find Near-Term Sellers,But Still Trading
By Mark Golden
Of DOW JONES NEWSWIRES

11/27/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -(Dow Jones)- Enron Corp. (ENE) continued to struggle Tuesday to find willing sellers of near-term gas and power in North America, but the one-time market maker was still able to trade on a limited basis, according to market sources.
"It's not getting any better," said one major energy broker.
Many energy trading companies aren't selling to Enron and are only buying from it near-term. These include Aquila Inc. (ILA), Mirant (MIR), Royal Dutch/Shell Group (RD) subsidiary Coral Energy, Sempra Energy (SRE), and Morgan Stanley Dean Witter's energy trading subsidiary, said the broker. The broker estimated Enron's over-the-counter trading volume to be about 25% of what it was a month ago. Companies are willing to buy from Enron in the spot gas and power markets, because taking delivery on commodity and paying for it a month later poses no credit risk for the buyer.
Some other companies, like Dynegy Inc. (DYN), Duke Energy Corp. (DUK) and BP PLC. (BP), continue to trade with Enron fairly freely, the broker said. Dynegy has reached an agreement to acquire Enron, though the terms of that deal are being renegotiated. The trading subsidiaries of troubled California utility-holding companies PG&E Corp. (PCG) and Edison International (EIX) also are trading with Enron.
The third and largest group of companies are trading with Enron on a very limited basis to reduce exposure by taking off-setting trades against deals done long ago. These include El Paso Corp. (EPG), Reliant Resources (RRI), Tractebel SA's (B.TRB) U.S. trading unit and regulated utilities, the broker said.
Several energy traders said that both power and gas were being sold at prices lower than Enron was offering.
"They've been cut off from so many people," said one electricity trader.
Enron Says Just Slight Reduction In Transactions

An Enron spokesman said he has seen a slight reduction in transactions but not to 25% of the one-month-ago level.
The notional value of Enron's 30-day rolling average of transactions is $2.8 billion, said Enron spokesman Eric Thode. Thode declined to give volume data for Tuesday or Monday, although the company was giving daily information two weeks ago.
"We're not doing daily information. We're only speaking in terms of 30-day rolling averages. ... It's not fair to speak in terms of daily because of daily volatility," Thode said.
Traders and brokers said they hope Dynegy will offer some kind of guarantee to Enron's trading to restore confidence. But, after Enron's ability to transact took a severe turn for the worse Nov. 20, Dynegy said that the companies must continue to operate independently until their merger is approved and completed.
Energy companies began shying away from Enron over the past month, as concerns about its finances precipitated a 75% drop in its stock price and left its bonds trading at levels typically associated with junk-rated debt.
But Enron saw its ability to trade seriously damaged last week following the late release of its quarterly financial report with the U.S. Securities Exchange Commission. For the first time since Enron's troubles began a month ago, energy companies stopped selling to Enron in the spot markets for fear that Enron might not be able to pay its bills as soon as next month based on the quarterly filing.
Moody's Investors Service and Standard & Poor's all rate Enron one notch above speculative grade. Moody's has Enron's ratings on review for a downgrade, and S&P has Enron on negative credit watch. Fitch calls Enron's credit rating "evolving." Enron's ability to do business in the energy markets depends on its maintaining investment-grade ratings.
-By Mark Golden, Dow Jones Newswires; 201-938-4604; mark.golden@dowjones.com
(John Edmiston in Houston and Jon Kamp in Chicago also contributed to this article.)

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: UPDATE 3-Dynegy says in talks on Enron merger structure.
By C. Bryson Hull

11/27/2001
Reuters English News Service
(C) Reuters Limited 2001.
HOUSTON, Nov 27 (Reuters) - Energy trader Dynegy Inc. confirmed on Tuesday it was in talks with floundering rival Enron Corp. over their proposed merger, as sources familiar with the negotiations indicated the final buyout price may be slashed some 40 percent.
"I can confirm that we are in discussions with the parties involved in the transaction related to the deal," Dynegy spokesman John Sousa told Reuters. He declined to give further details.
Dynegy had planned to buy its Houston rival for $9 billion in stock and is currently in a "due diligence" examination of Enron's complex financial books that began before the Thanksgiving holiday last Thursday.
The buyout offer, finalized Nov. 9, would have had Dynegy paying about $10.41 for each share of Enron, but Enron's shares have since cratered to near $4, stoking investor fears the merger will not go through as planned - if at all.
The stock exchange ratio under discussion could fall from the originally proposed valuation of 0.2685 of each Dynegy share for each Enron share to around 0.15 instead, sources familiar with the matter told Reuters. Enron is willing to accept the lower valuation, given the pressure on its stock price, the sources said.
Enron's shares bounced on Dynegy's confirmation of the restructuring talks, trading up 22 cents at $4.23 in late afternoon action on the New York Stock Exchange. The shares had dipped as low as $3.84 in late-morning dealings and as high $4.49. Dynegy's shares gained 4.7 percent or $1.83 to move to $41.08 on the NYSE.
Also on the table were negotiations to extend maturation of Enron's debt past the close of the merger, expected in the third quarter of 2002. The sources said an announcement was possible on a new infusion of at least $500 million in cash, which Enron has said it was seeking.
There also seemed to be an accord over who gets first crack at the Northern Natural Gas Pipeline, which would be Dynegy's consolation prize if the deal fell apart, a source said. Published reports have said that investment banks J.P. Morgan and Salomon Smith Barney had already accepted the pipeline as collateral in other loans, and may dispute Dynegy's ownership if the deal breaks up.
"The pipeline is far more valuable than what has already been collateralized. There's a solid earnings stream from that thing," said one source familiar with the discussions.
ONE TRADING UNIT SHUT DOWN
Two sources confirmed to Reuters that Enron's equity trading unit has been told it is being closed and that the roughly 60 employees there are being laid off. Enron was not immediately available for comment.
Those layoffs, part of broader job cuts expected as part of the Dynegy buyout, point to an acute problem for Enron - the loss of volume in its premier trading franchise. Enron's trading partners have been cutting back transactions with North America's largest energy trader because of credit concerns.
"This business is hugely dependent on volumes and volume growth. It is the principal reason that Dynegy is making the deal. If it's worth a lot less then Enron is worth less. It's vital to stop the bleeding in its core trading and marketing business," said Commerzbank analyst Andre Meade.
But as Enron's stock continued to lose value, down over 50 percent since Dynegy's initial bid, it seemed likely the purchase price would fall as well. Enron has seen its market capitalization drop to around $3 billion, from $60 billion at the start of 2001. (additional reporting by Jeff Goldfarb, Janet McGurty and Jonathan Stempel in New York).

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
RPT Dynegy confirms in talks on structure of Enron merger deal

11/27/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
(Repeating to clarify lead)
NEW YORK (AFX0 - Dynegy Inc confirmed it is in talks with Enron Corp on the terms of their two week-old acquisition deal.
"I can confirm that we are in discussions with the parties involved in the transaction related to the structure of a deal," Dynegy spokesman Steve Stengel said.
Enron declined to comment.
Citing people familiar with the matter, the Wall Street Journal reported today that Enron is in advanced talks with Dynegy to cut the price of the all-stock transaction by more than 40 pct to about 5 bln usd.
Enron is also trying to extend the maturity dates of some of its borrowings to stem a growing liquidity crisis, the Wall Street Journal said.
lwl/gc

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Merger Traders Wary Even If Enron, Dynegy Cut New Terms
By Christina Cheddar
Of DOW JONES NEWSWIRES

11/27/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -(Dow Jones)- Even if Dynegy Inc. (DYN) revises the terms of its acquisition of Enron Corp. (ENE), some takeover traders say the stock remains too risky.
Earlier Tuesday, a Dynegy spokesman confirmed the company was in talks to restructure the Enron acquisition. Separately, a person familiar with the negotiations said the talks are centered on creating a package that includes a lower exchange ratio for Enron shareholders, a provision for additional funding for Enron, and the refinancing of Enron's existing debt.
Even with the boost Enron shares have received from the reports, they continue to trade at a sharp discount to the original deal's value. Enron shares recently traded at $4.30, up 29 cents, or 7.2%, while Dynegy shares changed hands at $41.50, up $2.25, or 5.8%.
Under the original terms of the deal, Enron shareholders will receive 0.2685 of a Dynegy for each share outstanding, or $9.47 billion. At current trading levels, Enron shares are at a 61% discount to the offer price.
According to The Wall Street Journal, Dynegy and Enron are contemplating an exchange ratio of less than 0.15 of a Dynegy share, or about $5.29 billion.
The rejiggered deal is an attempt to restore confidence in Enron's ability to carry on its core energy marketing and trading business as the deal moves toward completion, the person said.
As the market waits for more details from the two companies, some say it will take more than a revised offer to provide takeover traders, also known as arbitrageurs, with enough confidence to play the deal in the typical fashion.
Often arbitrageurs bet on pending mergers by selling short shares of the acquiring company and buying shares of the target. In this way, the traders hope to profit as the target's share price moves toward the buyer's offer.
But according to some traders, there is too much risk, even for those accustomed to uncertainty, to play the Dynegy-Enron deal in this way.
Several traders said they were still wary that the deal could collapse and potentially push Enron into bankruptcy.
Enron's fortunes took a sharp turn for the worst after investors began to realize the company liberally used accounting loopholes to move its debts into off-balance-sheet financing vehicles, including partnerships run by its former chief financial officer, Andrew Fastow.
"There's nothing like accounting to scare people," said one trader, who said there is still a perception in the market that there is more bad news yet to come from Enron.
-By Christina Cheddar, Dow Jones Newswires; 201-938-5166; christina.cheddar@dowjones.com

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Dynegy confirms in talks on structure of Enron merger deal

11/27/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
NEW YORK (AFX0 - Dynegy Inc confirmed it is in talks with Enron Corp to renegotiate the terms of a deal with Dynegy Inc in an attempt to save their two week-old acquisition deal.
"I can confirm that we are in discussions with the parties involved in the transaction related to the structure of a deal," Dynegy spokesman Steve Stengel said.
Enron, meanwhile, declined to comment on the report.
Citing people familiar with the matter, the Wall Street Journal reported that Enron Corp is in advanced talks with Dynegy to cut the price of the all-stock transaction by more than 40 pct to about 5 bln usd.
Enron is also trying to extend the maturity dates of some of its borrowings to stem a growing liquidity crisis, the Wall Street Journal said.
lwl/gc

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
STOCKWATCH Enron slightly higher on hopes for new deal price

11/27/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
NEW YORK (AFX) - Shares of Enron Corp were slightly higher in midsession trade on reports that the company is trying to renegotiate the terms of a deal with Dynegy Inc, by cutting the price of the all-stock transaction to 5 bln usd, or 40 pct, from 9 bln usd, dealers said.
At 12.19 pm, amid broad declines in the market, Enron shares were trading up 5 cents at 4.04 usd. Dynegy was up 1.26 usd, or 3.26 pct, at 40.51.
The DJIA was down 111.48 points at 9,871.28. The S&P 500 was down 10.40 points at 1,147.02. The Nasdaq composite was down 20.25 points at 1,920.98.
Earlier, the Wall Street Journal said Enron was in advanced talks with Dynegy in an attempt to salvage their two week-old acquisition deal. The companies are discussing a new price for the all-paper deal, following the sharp fall in Enron's share price of the past few weeks.
Enron had hoped to finalise the deal and make an announcement yesterday that would calm investors -- the shares are trading at a small fraction of their record high last year of 87.50 usd.
As of today, however, the revised deal still has not been formalised.
The current agreement with Dynegy contains a "material adverse change" clause, which could be invoked to call the deal off.
As part of its due diligence, Dynegy is examining details of Enron's filing with the Securities and Exchange Commission last week, which reportedly contained information it had not received previously.
"Enron is a black hole, and I don't know how deep the bottom is," said Fadel Gheit an analyst at Fahnestock & Co.
Only four weeks ago, Enron's stock was trading at the 8 usd mark, Gheit said, noting that if the Dynegy had done their homework the stock would not have continued to collapse.
"The market sees this and somebody has to figure out the potential exposure, it could be several billion dollars," said Gheit.
If the deal is to go through then the two companies must arrive at a new stock-exchange ratio, said Gheit. Under the current acquisition agreement, Dynegy would exchange 0.2685 share for each Enron share tendered.
According to the Wall Street Journal, the new ratio is expected to be less than 0.15 share of Dynegy stock for every share of Enron stock, which would value Enron at less than 6 usd a share, or about 5 bln usd.
blms/cl/gc

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
IN THE MONEY: Hedge Funds Say Yes To New Enron Terms
By Carol S. Remond

11/27/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
A Dow Jones Newswires Column

NEW YORK -(Dow Jones)- News that Enron Corp. (ENE) and would-be suitor and savior Dynegy Inc. (DYN) are working to renegotiate their merger agreement has done little to assuage market jitters about Enron's fate.
And so far, even professional arbitrageurs, who normally thrive on placing bets on whether a merger is going to go through, continue for the most part to stay clear of Enron's stock and bonds because of the uncertainty surrounding the once mighty energy trader.
Still, reports that the equity swap ratio offered by Dynegy could be revised down to below 0.15 from 0.2685, has some hedge funds, often willing to take more risks, looking to place trades on the deal.
"We're trying to figure out a good play," said a trader at a New York hedge fund.
So far, bets under consideration seem to be those that would include a combination of stock and debt trading, somehow hedging a short position on Enron's shares with a long position in some of its bonds.
"People that are playing the debt are definitely playing the stock against it," a hedge fund manager at another fund said. This manager added, "We're still trying to evaluate different risk/reward scenario on the debt and equity sides."
Investors that sell stock short borrow shares in the hopes of replacing them later by purchasing them at a lower price.
Arbitrageurs typically sell short shares of the acquirer, while taking long positions in the stock of the target company. But there is nothing typical about Enron's financial woes and the rescue efforts launched by Dynegy and large banks like J.P. Morgan Chase & Co. and Citigroup Inc.
Traders reported increased activity in the still mostly illiquid Enron debt market. "Some bids are coming in, especially on the lower priced bonds," said a trader at a large New York investment bank that makes a market in Enron's bonds.
Enron bonds, which had fallen in value in recent weeks, gained five to seven points early Tuesday as investors continue to await confirmation from Enron and Dynegy that their merger deal remains on track, albeit at a lower price. Enron's 6.4% bonds due 2004 were recently trading at about 55 cents on the dollar, up from 48 cents Monday.
Under the original terms of the deal, Enron holders would have gotten 0.2685 of Dynegy shares for each of their Enron shares. Quoting people close to the discussions, The Wall Street Journal reported Tuesday that the new ratio is expected to be less than 0.15 share of Dynegy stock for every share of Enron stock. That lower exchange was also mentioned in a Dow Jones Newswires story last Friday. At current prices a 0.15 exchange ratio would value Enron at less than $6 a share.
Essentially this new value, if true, means that it has now become easier for hedge funds and other risk takers to play the merger odds.
When a hedge fund shorting Enron stock at $4 a share risked losing more than $6 if the merger went through at the 0.2685 ratio, it now stands to lose only $2 a share (based on the $6 value of Enron stock under the new 0.15 ratio). At the same time it has become much easier to hedge that loss potential by going long on Enron bonds. If the merger doesn't happen, Enron is seen by many as heading for bankruptcy with an ultimate share value of 0. That means that hedge funds shorting Enron at $4 stand to benefit by that amount.
Hedge fund managers and traders said that current thinking puts the value of Enron bonds at about 20 cents on the dollar if the merger fails and about 80 cents on the dollar if it goes through. Meanwhile, the value of Enron stock is capped at about $6 a share if the merger goes through with a new conversion ratio of 0.15.
"A lot of the guys are still very skeptical," said a bond trader at a New York bank. "But this is really making the hedge trade easier and we've seen more customers short the stock and buy the bonds."
Still, this type of bets isn't for the faint of heart, and most investors are likely to wait for more news before taking a position.
"We're nibbling a little bit at the bonds right now. But the situation is so volatile that it's difficult to be aggressive," the manager of a large New York hedge fund said.
Carol S. Remond; 201-938-2074; Dow Jones Newswires
carol.remond@dowjones.com

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Dynegy Confirms Talks On Enron Deal Structure - Source
By Christina Cheddar
Of DOW JONES NEWSWIRES

11/27/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -(Dow Jones)- Dynegy Inc. (DYN) confirmed the company is in talks with a number of parties regarding the structure of its transaction with Enron Corp. (ENE).
"I can confirm that we are in discussions with the parties involved in the transaction related to the structure of the deal," said John Sousa. "I can't elaborate any further at this time."
An Enron official wasn't immediately to comment.

Earlier Tuesday, a report in The Wall Street Journal quoted people familiar with the matter who said Enron and Dynegy were in advanced discussions to cut the price of the all-stock transaction by more than 40% to about $5 billion. Sousa, the Dynegy spokesman, didn't comment on the newspaper report.
Dynegy shares recently traded at $40, up 75 cents, or 1.9%, while Enron shares changed hands at $3.94, down 7 cents, or 1.7%.
Under the original terms of the transaction, Enron shareholders are to receive 0.2685 of a Dynegy share, or $10.78, for each share outstanding, or about $9.14 billion, based on Dynegy's recent stock price.
According to the Journal report, the new terms could be below 0.15 of a Dynegy share.
The deal is critical for Enron, which also simultaneously carrying out talks to receive between $500 million to $1 billion in additional funding to support its operations, while carrying on negotiations to restructure its debt, which totals about $13 billion.
While Dynegy has already provided Enron with a cash infusion, it is uncertain how long Enron's current funds will allow it to remain solvent.
Meanwhile, a third employee lawsuit has been filed against Enron over lost 401(k) retirement savings due to the recent collapse of Enron's stock, which has declined more than 90% in the trailing 12 months. The suit claims Enron "locked down" the plan, which prevented employees from being able to sell the shares, and seeks $850 million for plan losses.
Although the other recently filed employee suits didn't disclose the amount of compensation the plaintiffs are seeking, it is possible the suits seek a similar level of damages, a CreditSights report said.
If this is true, the CreditSights report said, it is possible the clause that allows Dynegy to walk away from the deal if the liabilities from "pending"' or "threatened" litigation may exceed $3.5 billion may be invoked.
In addition, to the employee lawsuits, more than a dozen shareholder suits have been filed against Enron.
-By Christina Cheddar, Dow Jones Newswires; 201-938-5166; christina.cheddar@dowjones.com

The discussions between Enron and Dynegy aren't merely focused on revising the consideration Dynegy will pay. They are also aimed at providing Enron with additional funding and at restructuring its debt, said a person familiar with the negotiations.
The moves are aimed at restoring confidence in Enron and relieving "the perceived liquidity crisis," the source said.
-By Christina Cheddar, Dow Jones Newswires; 201-938-5166; christina.cheddar@dowjones.com

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: Enron shares down despite talk of new Dynegy deal.

11/27/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Nov 27 (Reuters) - Shares of financially troubled energy trading giant Enron Corp. slipped back into the red on Tuesday after gaining in opening trade following news of a new rescue deal from Dynegy Inc. .
Enron shares were down 2 cents at $3.99 after rising 19 cents, or 4.7 percent, to $4.20 in early dealings on the New York Stock Exchange.
Analysts questioned the viability of the original proposal for Dynegy to acquire Enron in a deal worth about $9 billion.
The Wall Street Journal reported that the companies were discussing reducing the price of the all-stock deal by more than 40 percent, to about $5 billion.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Enron Credit Rating to Remain Unchanged for Today, Moody's Says
2001-11-27 16:12 (New York)

Enron Credit Rating to Remain Unchanged for Today, Moody's Says

     New York, Nov. 27 (Bloomberg) -- Enron Corp.'s credit rating
will remain at ``Baa3,'' the lowest investment grade, by Moody's
Investors Service, which said it won't take any ratings action
today on the largest energy trading company.

     David Stimpson, Moody's managing director for ratings
communication, said although there was speculation in the market
that Moody's would make a ratings change, the company won't take
any action on Enron today. Stimpson declined further comment.

     Moody's had been expected to make a statement on Enron's
credit as bankers sought to raise as much as $2 billion for the
energy trader in private equity.

     Bankers led by J.P. Morgan Chase & Co. Vice Chairman James B.
Lee have been unable for two weeks to raise the money because of
concern Enron won't be able to meet its obligations. That concern
was heightened after Enron disclosed a $690 million payment due
this week. Enron needs the money to operate as it completes an
acquisition by Dynegy Inc.

Enron Turned Down by Investors Alwaleed, Blackstone, Carlyle
2001-11-27 15:16 (New York)

Enron Turned Down by Investors Alwaleed, Blackstone, Carlyle

     New York, Nov. 27 (Bloomberg) -- Enron Corp.'s bankers,
seeking to raise as much as $2 billion for the energy trader, have
been turned down by investors including Prince Alwaleed Bin Talal,
the Carlyle Group Inc. and Blackstone Group LP.

     ``I was approached by several people to invest in the
company, but we declined,'' said Alwaleed, a billionaire investor
from Saudi Arabia. The fall in Enron's shares, which have declined
95 percent this year, didn't necessarily make it a good
investment, he said.

     Bankers led by J.P. Morgan Chase & Co. Vice Chairman James B.
Lee have been unable for two weeks to raise the money because of
concern Enron won't be able to meet its obligations. That concern
was heightened after Enron disclosed a $690 million payment due
this week. Enron needs the money to operate as it completes an
acquisition by Dynegy Inc.

     The prospect that Enron will fail to line up financing,
jeopardizing its plan to be acquired by Dynegy, has weighed on its
stock and bonds. The company's securities gained today as talks
between Enron and Dynegy to renegotiate terms of the transaction
convinced some investors the takeover was more likely to take
place.

     Enron 6.4 percent bonds that mature in 2006, which closed
yesterday at 48 cents on the dollar, rebounded to trade at about
55 cents on the dollar. At that price, the bonds yield 22.5
percent. Enron shares rose 21 cents, or 5 percent, to $4.22. The
stock finished yesterday at $4.01, its lowest level in 14 years.

                        Declining to Invest

     J.P. Morgan and Citigroup Inc., Enron's largest lenders, plan
to provide $250 million to Enron each as part of a $2 billion
package. The bankers have been seeking additional investments,
which would be made in the form of convertible stock, for more
than two weeks.

     Questor Management Co., a $1 billion private-equity fund that
invests in troubled companies, and buyout funds such as Carlyle
Group and Blackstone have balked at investing, said people
familiar with the situation. Blackstone and Questor declined to
comment. Christopher Ullman, a spokesman for Carlyle, said: ``We
are not in discussions with Enron about financing.''

   ``More equity would leave Enron with a stronger balance sheet,
which should reassure their trading partners,'' said Kathleen
Vuchetich, who helps manage $1.4 billion in assets at the Strong
American Utilities Fund. Vuchetich has 4.2 percent of her
portfolio invested in Dynegy shares.

     Enron and Dynegy discussed revising the terms of their merger
over the weekend, said Steve Stengel, spokesman for Dynegy. Dynegy
is now talking about paying less than 0.15 share for each of
Enron's, valuing the company's equity at about $5 billion, or less
than $6 per share, the Wall Street Journal reported, citing people
close to the discussions.

                               Terms

     ``The concern is that the Dynegy deal breaks down,'' said
Paul Tice, co-head of U.S. high-grade credit research who covers
the energy market for Deutsche Bank.

     Current terms call for an exchange ratio of 0.2685 share of
Dynegy stock for each Enron share. Given recent disclosures about
Enron's debt and the drop in the stock price, a fairer ratio would
be 0.15 share of Dynegy, said Ronald Barone, a UBS Warburg analyst
who rates Dynegy a ``strong buy.''

    Under current terms, the deal makes sense for Dynegy only if
Enron earns 85 cents or more next year, said Gordon Howald, an
analyst at Credit Lyonnais who rates Dynegy a ``buy.'' UBS
Warburg's Barone has reduced his estimate of Enron's 2002 earnings
to 75 cents a share from $1.65.

     Enron needs an infusion in part because it has $9 billion of
payments due before the end of 2002 and less than $2 billion in
cash and credit lines. The decline in reserves has also raised the
prospect that Moody's Investors Service may cut Enron's credit
rating. A lower rating would trigger $3.9 billion in debt
repayments for two affiliated partnerships.

                           Cash Question

     ``The main question is: `What is the cash position right
now?''' said Tice at Deutsche Bank. ``Is the falloff in the cash
position of the company stabilizing or not?''

     Moody's hasn't issued a report on Enron since the company
filed a quarterly report with the Securities and Exchange
Commission last week announcing it had a $690 million note due
this week. On Wednesday, Enron got a three-week reprieve from
lenders on the $690 million note and closed on a $450 million
credit line. Dynegy Chief Executive Officer Chuck Watson said he
was ``encouraged'' by the developments.

Liberty Funds Analyst Paik Comments on Dynegy and Enron Talks
2001-11-27 11:56 (New York)

     Boston, Nov. 27 (Bloomberg) -- Edward Paik, an analyst at
Liberty Funds Group, comments on Dynegy Inc.'s proposed
$23 billion acquisition of Enron Corp., the largest energy trader.

     Paik has Enron shares among the $3.6 billion in assets he
helps manage at Liberty.

     Dynegy may renegotiate terms of its bid for Enron, people
familiar with talks between the Houston-based companies said
yesterday.

     ``The stock market is clearly 100 percent certain the Dynegy
deal won't go through as negotiated,'' Paik said. ``We're just
waiting.''

     ``If they announce they've renegotiated the deal, it will be
implicit that due diligence has been done, and that Dynegy won't
walk away for anything that's happened up until now. If they were
to impose more conditions, what good is that? Dynegy needs to
resuscitate Enron back to health.''

A.G. Edwards Analyst Heim Comments on Dynegy and Enron Talks
2001-11-27 11:00 (New York)

     St. Louis, Missouri, Nov. 27 (Bloomberg) -- A.G. Edwards &
Sons Inc. analyst Michael Heim comments on Dynegy Inc.'s proposed
$23 billion buyout of Enron Corp., the largest energy trader.

     Dynegy may renegotiate terms of its bid for Enron, people
familiar with talks between the Houston-based companies said
yesterday. Heim rates Enron ``sell'' and Dynegy ``hold'' and
doesn't own shares of either company.

     The market is waiting for confirmation and details of a
renegotiated bid, Heim said.

     ``We'd need to know why they'd agreed to a new price,'' Heim
said. ``It also needs to be combined with some sort of shoring up
of Enron's trading business, which needs to be stabilized for the
deal to have real value.''

Commerzbank Analyst Meade Comments on Dynegy's Talks With Enron
2001-11-27 10:42 (New York)

     New York, Nov. 27 (Bloomberg) -- Commerzbank Securities
analyst Andre Meade comments on Dynegy Inc.'s proposed
$23 billion buyout of Enron Corp., the largest energy trader.

     Dynegy may renegotiate terms of its bid for Enron, people
familiar with talks between the Houston-based companies said
yesterday. Meade rates both companies ``hold'' and owns no shares.

     ``If they are renegotiating, it confirms our fears that
Enron's crown jewel, its marketing and trading business, is
deteriorating,''

      Investors are waiting for a sign on the state of the
business, Meade said.

      Enron's trading business was worth more than $10 billion
before partners began shunning it on credit concerns, Meade said.
A lower price struck by Dynegy may reveal how much business has
fallen, and whether Dynegy believes Enron can regain it, Meade
said.

     A New York Times report that banks may extend payments on
some loans until after Dynegy purchases Enron ``raises concern
that Dynegy will be hurt by taking on the vast liabilities of
Enron,'' Meade said.

ENRON SHARES RECOVER FROM A.M. SLUMP
By Lisa Sanders
CBS.MarketWatch.com

4:10 PM ET Nov 27, 2001

HOUSTON (CBS.MW) -- Shares of Enron recovered from the morning's sub-$4
a share level Tuesday amid reports that the embattled energy merchant is
working with Dynegy to renegotiate its takeover offer.

Enron (ENE), which once hit $84.88 during the last holiday season,
added 13 cents to close at $4.14 on volume of 68.4 million shares. The
stock was the most actively traded on the New York Stock Exchange
Tuesday.

Dynegy shares added $1.64 to close at $40.89.

The New York Times reported that Houston-based Dynegy (DYN) and Enron
are renegotiating Dynegy's bid, once valued at $9 billion in stock.
According to the report, Dynegy is worried that Enron's core business --
energy trading -- is deteriorating. See full story.

Getting it done

_______________________________________________________________________

Glen Hilton, portfolio manager of the Montgomery New Power Fund, said
it's a "crapshoot" as to whether the deal gets done.

"I think that regardless of the outcome Dynegy is still in a good
position for the long-term," he said. His fund liquidated its Enron
holdings completely in mid to late-October. "Enron was the leader (in
energy trading), and it's clearly suffering so Dynegy is in a good shot
to take up the mantle."

Hilton pointed to Enron's 10-Q, filed last Monday with the Securities
and Exchange Commission, and the falling share price as potential
triggers of the deal's material adverse affect clause. Those two things
could very well make Dynegy walk away from the merger. If that happens,
Hilton said, an Enron bankruptcy is a very real possibility.

"Very few companies understand what Enron does and Dynegy is one of the
few that could make something out of it," Hilton said. "If Dynegy can
restore confidence in Enron's trading business and get Northern Natural
Gas, it looks like it might be worth the headache."

Dynegy has the rights to Enron's Northern Natural Gas, a pipeline
system, whether the merger goes through or not.

Enron wasn't immediately available for comment. Dynegy, through a
company spokesman, confirmed that it was in discussions with "the
parties involved in the transaction" related to the structure of the
deal.

Top Of The News
Enron In Free Fall
Dan Ackman <javascript:newWindow('Ackman')>, Forbes.com <http://www.forbes.com/news>, 11.27.01, 9:00 AM ET

NEW YORK - If not for Sept. 11, Enron would be a major scandal; as it stands, it's a minor scandal. The Houston-based energy company, whose Chairman Kenneth Lay is a personal friend of and top fundraiser for President George W. Bush <http://www.forbes.com/2001/10/12/gwbush.html> and Vice President Dick Cheney, is in free fall. The bailout by rival Dynegy made public three weeks ago appears to be unraveling.

Dynegy's (nyse: DYN <http://www.forbes.com/finance/mktguideapps/compinfo/CompanyTearsheet.jhtml?tkr=DYN> - news <http://www.forbes.com/markets/company_news.jhtml?ticker=DYN> - people <http://www.forbes.com/peopletracker/results.jhtml?startRow=0&name=&ticker=DYN>) buyout of Enron (nyse: ENE <http://www.forbes.com/finance/mktguideapps/compinfo/CompanyTearsheet.jhtml?tkr=ENE> - news <http://www.forbes.com/markets/company_news.jhtml?ticker=ENE> - people <http://www.forbes.com/peopletracker/results.jhtml?startRow=0&name=&ticker=ENE>) was originally valued at $9 billion. But just as the deal was announced, Enron said its prior financial reporting was inaccurate and that it had overstated earnings by $586 million over the past four years.

While the companies have not said the merger is off, investors don't believe it will happen, at least not at the stated price; they have bid Enron shares down to the point where the company has a market value of less than $3 billion. The shares closed yesterday at $4.01, down from $78 a year ago.

The situation is in flux, as it has been for months. During that time, several top Enron executives have been forced to resign. Jeffrey Skilling, Enron's former chief executive officer, left in August for "personal reasons."

Company officials said they hope to announce, perhaps as early as today, a series of changes: a lower price for the takeover; a cash infusion of $500 million; new, extended loan terms by Enron's bankers; and somehow, an agreement that prevents Dynegy from walking away in the face of litigation over Enron's devastated employee-retirement plan. Lawsuits by shareholders are sure to follow, considering Enron's restatement and the pay it lavished on executives, including Lay who received $135 million from salary, bonus and the exercise of stock options in 2000 alone.

For now, Dynegy says it still wants to do a deal for its crosstown rival with 2000 revenue of $101 billion.

Even more alarming than the deterioration in the share price is the crisis of confidence in Enron's reliability as a trading partner in worldwide energy markets. Last year, Enron was the dominant player in natural gas and electricity trading--a fast-paced, complex business quite removed from the company's history as a gas- and oil-pipeline builder and operator. The fear now is that other companies will refuse to trade with Enron out of trepidation that it will file for bankruptcy and not pay its bills.

The company had $10.5 billion in debt as of its last annual report, and that number has likely grown by 20%. Already, credit agencies have cut their ratings on Enron debt.

Dynegy and its partner, ChevronTexaco (nyse: CVX <http://www.forbes.com/finance/mktguideapps/compinfo/CompanyTearsheet.jhtml?tkr=CVX> - news <http://www.forbes.com/markets/company_news.jhtml?ticker=CVX> - people <http://www.forbes.com/peopletracker/results.jhtml?startRow=0&name=&ticker=CVX>), may pump billions of dollars into Enron's operations if the purchase goes through. But the deal will certainly undergo regulatory scrutiny and will take months to close. Investors and energy traders are increasingly doubtful that Enron can hang on by itself.

Enron bills itself as one of the world's leading energy, commodities and services companies. It says it "markets electricity and natural gas, delivers energy and other physical commodities, and provides financial and risk management services to customers around the world." While all this may be true, its popularity with investors was based largely on its fast-growing revenue--much like the Internet companies whose collapse it mirrors.

Few shareholders had any understanding of what Enron did to generate that revenue, and indeed Enron's own auditors at Arthur Andersen were confused. Most of the revenue was generated from trading, but the company's shares sold as if it was still an industrial company and not a financial firm.

Enron was famous for being famous. Before the start of the 2000 baseball season, it purchased the rights to have its name on Houston's new ballpark. By 2002, Enron Field may need a new name.

The name Enron itself sounds like it has something to do with energy, but it means nothing. At the time the company was formed from the merger of InterNorth of Omaha and Houston Natural Gas, the idea was to call the company Enteron. But the namers then looked in the dictionary and found out that Enteron means "intestines;" they decided to drop the "te" in the middle and go with Enron. Soon Enron may be part of Dynegy, a much smaller company in terms of revenue. If the deal falls apart, it may want to go back to Enteron.


The following persons are currently in the Financial Nat Gas / Liquids
Confirmations group:

Joe Hunter  Manager
Diane Anderson Reviewer/Lead
Jean Bell  Nat Gas Confirmations and verbal confirm
Julie Brewer  EOL and Exotic
Bianca Ornelas  Liquids Confirmations and verbal confirm
Angie Guillen  Confirms for Counterparty confirming agent

I am also responsible for Weather and Pulp/Paper financial confirmations.
Those persons are:

Celeste Cisneros Weather
Tiffany Williams  Pulp/Paper & Steel.

Thanks,
Joe


Briant,

I'm not going to be interested.  I'm looking for a boat that is a little
bigger.  Thanks.

D

Briant Baker
03/21/2001 08:17 AM
To: Daren J Farmer/HOU/ECT@ECT
cc:
Subject: Re: Boat

I checked the boat and it is 17 ft, 7 in. long, it is a Capri model # 1750CH,
it has a am/fm cass.  The motor is 3.0L MerCruiser Alpha Sterndrive (135 hp)


Taffy:
Works for me
CArol


I just entered these deals and backdated them -

562162 - buy Duke
562164 - sell Calpine

Sorry about the delay.

Kate

Evelyn Metoyer@ENRON
03/27/2001 09:02 AM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Re: 3/26 Checkout

Hi Kate, has Jeff entered these deals yet?

   Kate Symes @ ECT                03/26/2001 06:33 PM

To: Evelyn Metoyer/Corp/Enron@ENRON
cc:

Subject: Re: 3/26 Checkout

I just heard back from Jeff on these deals - apparently he's hiding his trade
log now to keep his secrets safe! Well that didn't work too well for us
today, because the two missing deals were right there at the bottom....with
no deal numbers! Anyway, Jeff said he'd enter these in the morning, and if
you hear anything from Prebon in the meantime, these are good deals.

Thanks,
Kate

Evelyn Metoyer@ENRON
03/26/2001 01:58 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: 3/26 Checkout

BLOOMBERG
All deals checked out fine.

PREBON

Jeff Richter:
I am missing the following deals:
1) Enron buys from Duke June NP-15 at $260.00
2) Enron sells to Calpine June NP-15 at $261.00

AMEREX WEST
All deals checked out fine.


Here is that "Umbrella" guaranty we were talking about.  Why don't you print
it out and then let's go over the changes that need to be made...
----- Forwarded by Tana Jones/HOU/ECT on 08/23/2000 05:54 PM -----

	Carol St Clair
	06/29/2000 12:15 PM

		 To: Mary Tudon/HOU/ECT@ECT
		 cc: Tanya Rohauer/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Mark
Taylor/HOU/ECT@ECT, Susan Bailey/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT,
Samantha Boyd/NA/Enron@Enron, Jeffrey T Hodge/HOU/ECT@ECT, Stacy E
Dickson/HOU/ECT@ECT, Harry M Collins/HOU/ECT@ECT, Leslie Hansen/HOU/ECT@ECT,
Elizabeth Sager/HOU/ECT@ECT
		 Subject: Multi-Product Counterparty Guaranty

----- Forwarded by Carol St Clair/HOU/ECT on 06/29/2000 12:13 PM -----

	Carol St Clair
	06/29/2000 12:13 PM

		 To: Mary Tudon/HOU/ECT@ECT
		 cc: Tanya Rohauer/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Mark
Taylor/HOU/ECT@ECT, Susan Bailey/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT,
Samantha Boyd/NA/Enron@Enron, Jeffrey T Hodge/HOU/ECT@ECT, Stacy E
Dickson/HOU/ECT@ECT, Harry M Collins/HOU/ECT@ECT, Leslie Hansen/HOU/ECT@ECT,
Elizabeth Sager/HOU/ECT@ECT
		 Subject: Multi-Product Counterparty Guaranty

Mary:
Enclosed is the Counterparty form that we have come up with for Multi-Product
Guarantys.  Depending upon the products that need to be covered, each
Guaranty will need to be modified to make sure that it describes the proper
entities and products.  I will send along the Enron form of this shortly but
please pass this along to the appropriate people in the credit group.

Jeff, Stacy and Harry,
Are you going to change the Physical product form of Guaranty to look more
like this?  Power has changed their form and it may help for us to all be
consistent especially when we are asked to amend an existing Guaranty to
include more products.  If you do decide to amend your form, please send the
new form to credit.

Thanks for everyone's input.

Carol


I have created a spreadsheet to assist in the tracking and booking of the gas
supply related to Tenaska IV.  If you have suggestions or comments on the
file, contact either me or Mark.

Megan - You can copy the Jan 01 Est tab and update the volumes with actuals.
The file should calculate the resulting settlement with Tenaska.  I will then
update the demand fee on the deal ticket to true-up the month.  Since we
haven't gone through actuals in the spreadsheet, we may have to do some
tweaking with the formulas.  Anyway, this should give us a good start and you
will be able to see where we closed the month in Logisitics.

The file is located in O/Logistics/Cleburne Plant/2001FuelMgmt.xls.  If you
don't have access, we can look into creating a new location on the O drive.
The spreadsheet is attached for this month.  This is definitely a work in
progress.  So, if you have ideas to make it easier, or if you need something
added, let us know.

D


Pig:
Joe says he has a pot of red beans with a package of midway hot in it.
I have two thin frozen deer sausage lagsana one may feed us all. One should
feed us with appropriate sides.

Joe says we need
RICE, GREEN ONION and SHREDDED CHEESE

I think salad and bread will round out my dinner meal

SALAD< BREAD

other  things..

LIMES (for XX keg treat)

I have one last package of breakfast deer sausage, will bring.
Brian, need your direction and input for shopping for breakfast and lunches.

I will bring some Dewers to supplement what was left. recommend that if any
of you have a half bottle, do the same.

Brian we will do the shopping, unless you want to. We will see you at the
lease Thursday night.

I am eating bird at Stillforest around 2 and invision bellaire area
departure late afternoon. flexible, in no hurry. e.

_________________________________________________________________
Get your FREE download of MSN Explorer at http://explorer.msn.com/intl.asp


See attached:

Thanks,
Joe


what went on this weekend?  i am still tired from this weekend.


Congratulations to you all on an exceptional effort in getting the Harrah's
electricity deal closed! I know it was tough managing through the  internal
issues- contract language, tariff/power pricing curve adjustments,etc- but it
was the right thing to do and both the deal and Enron is much better off.

Marty, Ken, Sean- Great job in keeping the customer at the table and still
getting them to execution given all the changes in the last two weeks.

Great job by all....congrats!


Ed:  Jason Peters is an A&K lawyer working with us for about six weeks and
he's helping on these agreements.  We would like to meet with you about these
lenders and update ENA's position.  Could you please send me the "comparison
chart" which you prepared for these banks and ED&F Mann and Paribas, and let
me know when you are available to meet?  Thanks.  Sara


Following this week's discussions, we have recalculated the absolute minimum number of people required to keep your present systems in production.  In recalculating this number, we have eliminated everything except that which is required for "non-elective" maintenance.  Although many of the systems have been in operation for some time, we still frequently encounter problems which interrupt production.  Such events require emergency attention and are what we refer to as "non-elective" maintenance.  Therefore, in recalculating these support staff, we have excluded any effort for improvements or other changes that the users have previously identified for next year's work.  Also, we are suggesting excluding any further effort on the Saber Settlement, GeoQual, Market Intelligence, DPC Tax & Media Services systems which we will simply wrap up as those are and put them in "moth balls" for possible future use.  As the result of this process, we have come to a core minimum number of 19 people required to simply ensure that the remaining systems continue to function.  The only way that we can logically reduce this core number any further would be to "turn off" other production systems.  Although we recognize that the concept of turning-off other production systems is unattractive, it would be far better to have this happen in a planned, orderly fashion than having them crash in an unrecoverable condition later.

Regards,
Inja Chun

 -----Original Message-----
From: 	Chun, Inja
Sent:	Friday, November 02, 2001 10:55 AM
To:	Pearce, Barry; Pickering, Mark; Beck, Sally; Piper, Greg
Subject:	ENW/EBS - IT Support for 2002
Importance:	High
Sensitivity:	Confidential

As we discussed at the Lunch meeting yesterday, we have previously reviewed all of the EBS systems to determine the minimum staffing required to keep the system operational (maintenance) and to meet any currently identified modifications (future development).  The summarized numbers are shown on the attached cover sheet by each system with accompanying backup details.  The details cover major functionalities of systems, magnitude of system (i.e. # of deals, # facilities) and other information that Greg Piper asked in the meeting.  Also shown on the last column is an estimate of the impact on our users and customers, if the computer systems were no longer available.   I look forward to discussing these issues with you on Monday, and please let me know if you have any questions in the meantime.

	 << File: EBS-IT 2002 Staffing Estimate.xls >>

          << File: EBS Systems Diagram.vsd >>
Regards,
Inja Chun


Frank,

Louise Kitchen asked that I send you these additional ring trades totaling about $40mm that we have identified with Allegheny.  Please call in the morning to discuss.  Louise has indicated we are ready to move forward subject to commercial and legal approvals.

Regards,
Bill

(713) 853-3831 (office)
(713) 857-7739 (cell)

 -----Original Message-----
From: 	Ngo, Tracy
Sent:	Sunday, November 04, 2001 5:16 PM
To:	Bradford, William S.; Kitchen, Louise
Cc:	Hall, Steve C. (Legal); Murphy, Melissa Ann; Sacks, Edward; Mumm, Chris
Subject:	Round 2 of ring trades-aep and allegheny


To all SITARA users:

The SITARA system will be brought down on a nightly basis between 12:01AM  -
4:00 AM Central Time for nightly processing.
The system will be available in the morning after that time, with positions
primed by 5:30 AM.

CPR will be available during these times.

Please call the SITARA Hotline ((713) 853-7049) if you have any questions or
concerns.


(See attached file: HPLN0419.xls)

 - HPLN0419.xls


June 8, 2001

Dear JERRY DAREN FARMER:

We are delighted that you have made a smart energy choice by signing up
with NewPower(tm) as part of the Texas Electric Choice Pilot Program.
Tens of thousands of Texas households have joined you in taking advantage
of the tremendous savings NewPower will provide you over the next two years.

As your new energy supplier, we wanted to make sure that you were informed
of a recent development affecting you as a participant of the pilot
program. NewPower was recently notified by the Texas Public Utility
Commission (PUC) that the pilot program will be phased in more slowly
over the summer months. A more gradual timetable for processing switches
from your local utility to energy service providers, such as NewPower,
will help to ensure a seamless transition between energy suppliers for
the thousands of Texans who have enrolled in the program.

Click below to read the official announcement from the Texas PUC. This
requires you to have Adobe Acrobat Reader:
http://i2.innovyx.com/newpower/pilot_ltr.pdf

If you do not have Adobe Acrobat Reader, please click below and follow
instructions for free download:
http://tr.innovyx.com/redir.asp?148_46_2788

What does this mean for you? It simply means that your NewPower service
will begin during July instead of June as originally planned. Until then,
your existing provider will continue to provide your electricity,
uninterrupted. Rest assured, once your NewPower service begins, you'll
still get the same great rates and excellent customer service you were
promised when you signed up.

There is no need for you to take any action.  NewPower expects that the
Texas Public Utility Commission will enable us to begin providing your
household with electric service after July 6th.

In the meantime, NewPower will send a welcome letter notifying you of the
effective date of your NewPower service.  If you have any questions or
concerns, please visit the Public Utility Commission's website at
http://tr.innovyx.com/redir.asp?148_47_2788 or call NewPower
at 877-819-9817. (For help in Spanish, call 1-866-523-4176.)

Best regards, and welcome to NewPower!

Nick Utton
Chief Marketing Officer

><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><
If you do not wish to receive important announcements regarding your energy
service via email, simply reply to this mail with the word "unsubscribe" in
the subject line.  Your registered email address is dfarmer@enron.com.


<http://www.rigzone.com/images/spacer.gif>
	Monday
February 4, 2002	iOTC <http://www.iotc.com>
  <http://www.rigzone.com/images/spacer.gif>
  <http://www.rigzone.com/images/spacer.gif>
  <http://www.rigzone.com/images/spacer.gif>	 RIGZONE <http://www.rigzone.com/images/email/top_Rigzone.jpg>	  <http://www.rigzone.com/images/email/top_Curve.gif>	  <http://www.rigzone.com/images/spacer.gif>	  <http://www.rigzone.com/images/email/top_DailyNews.gif>
  <http://www.rigzone.com/images/spacer.gif>
  <http://www.rigzone.com/images/spacer.gif>	home <http://www.rigzone.com/default.asp> | news <http://www.rigzone.com/news/> | search <http://www.rigzone.com/search/> | maps <http://www.rigzone.com/maps/> | data <http://www.rigzone.com/data/> | jobs <http://www.rigzone.com/jobs/> | market <http://www.rigzone.com/market/> | store <http://www.rigzone.com/store/> 	  <http://www.rigzone.com/images/spacer.gif>
  <http://www.rigzone.com/images/spacer.gif>
  <http://www.rigzone.com/images/spacer.gif>	  <http://www.rigzone.com/images/spacer.gif>
  <http://www.rigzone.com/images/spacer.gif>	In This Issue	  <http://www.rigzone.com/images/email/title_Corner.gif>
  <http://www.rigzone.com/images/spacer.gif>	  <http://www.rigzone.com/images/spacer.gif>	  <http://www.rigzone.com/images/spacer.gif>

Current Oil and Gas Industry News
T! op Stories for the Past 7 Days
Featured Events and Conferences
What's in Store - Books & More

Featured Employment Opportunities
Surplus Oilfield Equipment For Sale
Worldwide Offshore Rig Utilization
Oil & Gas Prices

  <http://www.rigzone.com/images/spacer.gif>

Industry Headlines	  <http://www.rigzone.com/images/email/title_Corner.gif>
	  <http://www.rigzone.com/images/spacer.gif>	  <http://www.rigzone.com/images/spacer.gif>
Kuwait Oil Fire Leaves Four Workers Dead <http://www.rigzone.com/news/article.asp?a_id=2536>
A fire and an explosion at an oil facility in northern Kuwait have left four workers dead and at least 16 injured.

Norwegian Pilot Strike Ends <http://www.rigzone.com/news/article.asp?a_id=2535>
CHC Helicopter Corporation has reached an agreement with the leadership of the union representing CHC pilots in Norway. All striking pilots will report back to work starting Feb.! 2, 2002.

  <http://www.rigzone.com/images/spacer.gif>

advertisement
Welcome to the world of Thuraya, where communication knows no boundaries. Thuraya provides mobile satellite telephony to 99 countries throughout Europe, North and Central Africa, the Middle East, Central Asia and the Indian Sub-continent. With a combination of cellular and satellite phone capabilities bolstered by GPS and data features, Thuraya provides the total communications solution you've been looking for.

Click for more... <http://www.rigzone.com/news/article.asp?a_id=2512>

Exploration	  <http://www.rigzone.com/images/email/title_Corner.gif>
  <http://www.rigzone.com/images/spacer.gif>	  <http://www.rigzone.com/images/spacer.gif>	  <http://www.rigzone.com/images/spacer.gif>
ONGC May Make BG a Partner <http://www.rigzone.com/news/article.! asp?a_id=2538>
ONGC may make British Gas a technical partner for operating Panna-Mukta and Tapti fields - despite rejecting the company's claim as operator of the field when BG purchases Enron's equity.

Morocco Protests Offshore Exploration Licenses <http://www.rigzone.com/news/article.asp?a_id=2537>
The Moroccan government is protesting a decision made late last year by Spain to grant Repsol-YPF nine oil exploration concessions in the Atlantic between Morocco and the Canary Islands.

  <http://www.rigzone.com/images/spacer.gif>

Production	  <http://www.rigzone.com/images/email/title_Corner.gif>
  <http://www.rigzone.com/images/spacer.gif>	  <http://www.rigzone.com/images/spacer.gif>	  <http://www.rigzone.com/images/spacer.gif>
Russia Keeps Within Export Limits <http://www.rigzone.com/news/article.asp?a_id=2539>
No additional quotas for shipments of Russian crude oil were issued in January and exports were within limits agreed with OPEC as part of a deal to support prices, according to official sources.

! Kerr-McGee Turns On the Tap at Nansen <http://www.rigzone.com/news/article.asp?a_id=2534>
Kerr-McGee Oil & Gas announced that the Nansen field, in the deepwater Gulf of Mexico, achieved first production on Jan. 28, 2002 from the first of three subsea wells.

  <http://www.rigzone.com/images/spacer.gif>

Company & Financial News	  <http://www.rigzone.com/images/email/title_Corner.gif>
  <http://www.rigzone.com/images/spacer.gif>	  <http://www.rigzone.com/images/spacer.gif>	  <http://www.rigzone.com/images/spacer.gif>
Marathon To Spend $1.8 Billion in 2002 <http://www.rigzone.com/news/article.asp?a_id=2533>
Marathon Oil Corporation announced that it has approved a budget of $1.8 billion for its 2002 capital, investment and exploration programs.

Rowan Completes Acquisition <http://www.rigzone.com/news/article.asp?a_id=2532>
Rowan Companies, Inc. announced that Rowan Electric, Inc., a wholly owned subsidiary, has completed the purchase of certain assets of Oilfield-Electric-Marine, Inc. and Industrial Logic Systems, Inc., for ! a price of approximately $8 million in Rowan common stock.

Varco Revenue Up 46% <http://www.rigzone.com/news/article.asp?a_id=2531>
Varco's net income in 2001 more than doubled that of 2000.

  <http://www.rigzone.com/images/spacer.gif>

advertisement
Mark your calender! On Wednesday, February 6th, access to Rigzone's premium Gulf of Mexico Drilling Permit and Plans database will be open to all rigzone members and website visitors. Additionally, HR managers and Industry recruiters will have unlimited free access to the Rigzone Career Center. Take a test drive, we think you will like what you find.

Last 7 Days Top Stories	  <http://www.rigzone.com/images/email/title_Corner.gif>
  <http://www.rigzone.com/images/spacer.gif>	  <http://www.rigzone.com/images/spacer.gif>	  <http://www.rigzone.com/images/spacer.gif>
BP Could Cut Jobs in the North Sea <http://www.rigzone.com/n! ews/article.asp?a_id=2507>
BP is considering cutting some of its 3,600 Aberdeen-based workforce in a bid to control rising costs.

AEC and PanCanadian Confirms Merger Plans <http://www.rigzone.com/news/article.asp?a_id=2492>
Alberta Energy Company and PanCanadian join forces in a "merger of equals" that will create one of North America's largest independent energy companies.

Amerada Hess Hits Offshore Equatorial Guinea <http://www.rigzone.com/news/article.asp?a_id=2509>
Amerada Hess Corporation reported that it has made another significant oil discovery offshore Equatorial Guinea in the Rio Muni Basin.

Anadarko Plans to Spend $2 Billion in 2002 <http://www.rigzone.com/news/article.asp?a_id=2526>
Anadarko Petroleum Corporation said that its board of directors has approved an initial capital spending budget of $2 billion for 2002 this is down from the $3.3 billi! on approved for 2001.

Technip Coflexip Lands Brunei Development Project <http://www.rigzone.com/news/article.asp?a_id=2496>
Technip-Coflexip has recently been awarded a contract by Brunei Shell Petroleum Co. for its Egret Phase 1 Gas Development Project, offshore Brunei.

OPEC Expects To Increase Market Domination <http://www.rigzone.com/news/article.asp?a_id=2514>
OPEC's oil production and its domination of the oil market are expected to increase gradually over the next two decades, with the group's output rising to more than 50% of global oil demand by 2020, a recent OPEC study says.

Woodside Hits with Enfield-4 Appraisal Well  <http://www.rigzone.com/news/article.asp?a_id=2503>
Woodside Petroleum Ltd said its Enfield-4 appraisal well offshore Western Australia had found oil.

Petro-Canada Acquires Veba Assets <http://www.rigzone.com/news/article.asp?a_id=2500>
Petro-Canada announ! ced that it has agreed to acquire the international oil and gas operations of Veba Oil & Gas Gmbh from Veba and BP p.l.c. for a price of Cdn $3.2 billion in cash.

Honeywell Lands Belanak Contract <http://www.rigzone.com/news/article.asp?a_id=2510>
Honeywell Industry Solutions has been selected as the automation supplier for the Belanak oil field development project in Indonesia.

McMoRan Successful at Mound Point #2 Well <http://www.rigzone.com/news/article.asp?a_id=2528>
This well confirms McMoRan's exploration concept for the Mound Point area which is one of the largest geologic structures in the shallow waters offshore Louisiana.

Venezuelan Field Falls Short of Expectations <http://www.rigzone.com/news/article.asp?a_id=2502>
The consortium operating Venezuela's LL-652 field large fourth-quarter write-downs as the block continues to fall short of expectations.

Pertamina Bidding for Devon Indonesia Assets <http://www.rigzone.com/news! /article.asp?a_id=2508>
Pertamina is ready to submit a bid to acquire Devon Energy's local assets.

  <http://www.rigzone.com/images/spacer.gif>

Upcoming Oil & Gas Industry Events	  <http://www.rigzone.com/images/email/title_Corner.gif>
  <http://www.rigzone.com/images/spacer.gif>	  <http://www.rigzone.com! /images/spacer.gif>	  <http://www.rigzone.com/images/spacer.gif>
Feb. 6 	Torch Mid-Winter Energy Conference <http://www.rigzone.com/news/event_detail.asp?event_id=196>	New York
Feb. 7 	Marine Construction 2002 <http://www.rigzone.com/news/event_detail.asp?event_id=166>	Houston
Feb. 10 	2002 SPE Internation! al Petroleum Conference & Exhibition in Mexico <http://www.rigzone.com/news/event_detail.asp?event_id=35>	Villahermosa
Feb. 26 	2002 IADC/SPE Drilling Conference and Exhibition  <http://www.rigzone.com/news/event_detail.asp?event_id=37>	Dallas
Feb. 26 	Offshore Oil and Gas Safety Seminars <http://www.rigzone.com/news/event_detail.asp?event_id=214>	Aberdeen
Feb. 27 	Human Resources in Oil & Gas <http://www.rigzone.com/news/event_detail.asp?event_id=194>	Aberdeen
Ma! r. 10 	AAPG Annual Meeting <http://www.rigzone.com/news/event_detail.asp?event_id=21>	Houston
Mar. 17 	Oil Field Chemistry Symposium - 13th International <http://www.rigzone.com/news/event_detail.asp?event_id=224>	Geilo
Mar. 20 	LNG North America <http://www.rigzone.com/news/event_detail.asp?event_id=201>	Houston
Apr. 9 	2002 SPE/ICoTA Coiled Tubing Conference and Exhibition <http://www.rigzone.com/news/event_detail.asp?event_id=41>	Houston
list your conference <http://www.rigzone.com/news/post_event.asp?action=INSERT>	view upcoming events <http://www.rigzone.com/news/event_home.asp>
  <http://www.rigzone.com/images/spacer.gif>

  <http://www.rigzone.com/images/spacer.gif>	  <http://www.rigzone.com/images/email/title_tab_SponsoredBy.gif>
  <http://www.rigzone.com/images/spacer.gif>	Click here to go to Baker Hughes <http://www.bakerhughes.com/>
AADE <http://www.aadehouston.net/>
HoverDril <http://www.hoverdril.com>
  <http://www.rigzone.com/images/spacer.gif>
  <http://www.rigzone.com/images/spacer.gif>
promote your company <http://www.rigzone.com/advertise/>

  <http://www.rigzone.com/images/email/title_tab_InStore.gif>
  <http://www.rigzone.com/images/spacer.gif>	 <http://www.rigzone.com/store/product.asp?p_id=117>
OGJ 200/100 International on Diskette <http://www.rigzone.com/store/product.asp?p_id=117>
  <http://www.rigzone.com/images/spacer.gif>
 <http://www.rigzone.com/store/product.asp?p_id=94>
International Oil Company Financial Management in Nontechnical Language <http://www.rigzone.com/store/product.asp?p_id=94>
  <http://www.rigzone.com/images/spacer.gif>
 <http://www.rigzone.com/store/product.asp?p_id=307>
Oilwell Fishing Operations: Tools and Techniques, 2nd Ed. <http://www.rigzone.com/store/product.asp?p_id=307>
  <http://www.rigzone.com/images/spacer.gif>
  <http://www.rigzone.com/images/space! r.gif>
  <http://www.rigzone.com/images/spacer.gif>
more products <http://www.rigzone.com/store/>

 <http://www.energy-prospectus.com/>

  <http://www.rigzone.com/images/email/title_tab_RZMarket.gif>
  <http://www.rigzone.com/images/spacer.gif>	featured equipment:
National 110 M <http://www.rigzone.com/market/surplus_listing.asp?eq_id=432>
 <http://www.rigzone.com/market/surplus_listing.asp?eq_id=432>

Ideco DIR 805 <http://www.rigzone.com/market/surplus_listing.asp?eq_id=431>
 <http://www.rigzone.com/market/surplus_listing.asp?eq_id=431>
  <http://www.rigzone.com/images/spacer.gif>
  <http://www.rigzone.com/images/spacer.gif>
more equipment <http://www.rigzone.com/market/>

  <http://www.rigzone.com/images/email/title_tab_RZCareerCenter.gif>
  <http://www.rigzone.com/images/spacer.gif>	featured jobs:
-	Sales Engineer <http://www.rigzone.com/jobs/job_posting.asp?p_id=1028>
-	Project Manager- Drilling <http://www.rigzone.com/jobs/job_posting.asp?p_id=1025>
-	Emergency Response Coordinator/Deepwater <http://www.rigzone.com/jobs/job_posting.asp?p_id=1024>
more hot jobs >> <http://www.rigzone.com/jobs/hot_jobs.asp>
featured candidates:
-	Willing To Travel and Live Abroad <http://www.rigzone.com/jobs/resume.asp?r_id=10428>
-	Company Representative <http://www.rigzone.com/jobs/resume.asp?r_id=7112>
-	Cost Control Specialist <http://www.rigzone.com/jobs/resume.asp?r_id=10454>
search for candidates >> <http:/! /www.rigzone.com/jobs/search_resume.asp>
  <http://www.rigzone.com/images/spacer.gif>
  <http://www.rigzone.com/images/spacer.gif>

  <http://www.rigzone.com/images/email/title_tab_RigUtil.gif>
  <http://www.rigzone.com/images/spacer.gif>	Drillships:
To 5000': 	! 50.0%	(7/14)
+5000': 	96.0%	(24/25)
Semisubs:
2nd Gen: 	69.9%	(51/73)
3rd Gen: 	86.0%	(43/50)
4th Gen: 	97.4%	(37/3! 8)
5th Gen: 	100.0%	(7/7)
Jackups:
To 200': 	53.7%	(36/67)
200' MC: 	58.3%	(14/24)
200' MS: 	14.3%	(3/21)
3! 00' IC: 	88.5%	(85/96)
+300' IC: 	92.6%	(50/54)
Severe Env.: 	90.5%	(19/21)
  <http://www.rigzone.com/images/spacer.gif>
  <http://www.rigzone.com/images/spacer.gif>
view complete utilization ! report <http://www.rigzone.com/data/utilization_trends.asp>

  <http://www.rigzone.com/images/email/title_tab_OilPrices.gif>
  <http://www.rigzone.com/images/spacer.gif>	Light Crude Oil: 	$20.38/BBL
(2.52%)
Brent Crude Oil: 	$19.98/BBL
(4.17%)
Natural Gas: 	$2.13/MMBtu
(-1.39%)
Unleaded Gasoline: 	$0.60/gal
(9.09%)
prices from: 	2/1/2002
change since: 	1/31/2002
  <http://www.rigzone.com/images/spacer.gif>
  <http://www.rigzone.com/images/spacer.gif>

  <http://www.rigzone.com/images/spacer.gif>
  <http://www.rigzone.com/images/spacer.gif>
  <http://www.rigzone.com/images/spacer.gif>
Promotional Opportunities
Become a Sponsor, feature your job opening or, advertise your upcoming industry conference. Click here <http://www.rigzone.com/advertise/> for more information, send your press release to info@rigzone.com <mailto:info@rigzone.com> or call us at 281-345-4040.

Member Services
If you no longer wish to receive this newsletter, you may unsubscribe by clicking here <http://www.rigzone.com/daily_unsubscribe.asp> or by logging in to Rigzone and updating your profile. You can also change the format you receive (HTML or Text) and your email address by logging in and updating your account. Click here to log in <http://www.rigzone.com/login.asp?returnURL=/member_register.asp>.
  <http://www.rigzone.com/images/spacer.gif>


I LOVE U


Could one of you fine gentleman give me the details of what New Power paid
ENA for October activity?


Last Day Dell Onsite for Pilot 3!

Dell Computer:
Dell will be here today from 8am - ?2:30pm to answer questions and take
orders in room EB568 and EB560. ?

Time Warner's Road Runner Broadband Service:
Also here today are representatives from Time Warner's Road Runner Broadband
Service to answer any questions and to check serviceability, also in EB568.
?Ordering for Internet service is expected to begin the end of next week.

Please remember PC ordering concludes on January 25th! ?Thanks again for the
overwhelming response and interest. ?

The ClickAtHome Team!


That's fine.  I'll direct the comments to the appropriate individuals.

Marie

 -----Original Message-----
From: 	"Perkins, Todd A." <TAPERKIN@southernco.com>@ENRON [mailto:IMCEANOTES-+22Perkins+2C+20Todd+20A+2E+22+20+3CTAPERKIN+40southernco+2Ecom+3E+40ENRON@ENRON.com]
Sent:	Thursday, July 12, 2001 12:13 PM
To:	Heard, Marie
Subject:	RE: Draft ISDA Master Agreements

I got it.  Should I send our comments back to you?

Thanks,
Todd Perkins
Southern Company
404-506-0655

> -----Original Message-----
> From:	Heard, Marie [SMTP:Marie.Heard@enron.com]
> Sent:	Thursday, July 12, 2001 11:56 AM
> To:	taperkin@southernco.com
> Subject:	FW: Draft ISDA Master Agreements
>
>
> Hope this reaches you this time.
>
> Marie
> >  -----Original Message-----
> > From: 	Heard, Marie
> > Sent:	Wednesday, July 11, 2001 5:01 PM
> > To:	'taperkin@southernco.com'
> > Cc:	Espinoza, Veronica; Boyd, Samantha; Panus, Stephanie; Hendry,
> > Brent
> > Subject:	Draft ISDA Master Agreements
> >
> > Mr. Perkins:
> >
> > Pursuant to Veronica Espinoza's request, I am attaching the following
> > for your review:
> >
> > 1.	Schedule to the ISDA Master Agreement and Paragraph 13 to the
> > ISDA Credit Support Annex between Enron North America Corp. ("ENA")
> > and Savannah Electric and Power Company.
> >
> > 2.	Schedule to the ISDA Master Agreement and Paragraph 13 to the
> > ISDA Credit Support Annex between ENA and Georgia Power Company.
> >
> > 3.	Schedule to the ISDA Master Agreement and Paragraph 13 to the
> > ISDA Credit Support Annex between ENA and Mississippi Power Company.
> >
> > Please do not hesitate to contact either Brent Hendry, Senior Counsel
> > at (713) 853-7124 (brent.hendry@enron.com) or me should you have any
> > questions or comments.  We look forward to hearing your comments.
> >
> > Marie Heard
> > Senior Legal Specialist
> > Enron North America Corp.
> > Phone:  (713) 853-3907
> > Fax:  (713) 646-3490
> > marie.heard@enron.com
> >
> >
> > 				 <<020ctr(savannah).doc>> 	 <<106
> > ctr (Georgia Power Co).doc>> 	 <<153ctr(miss power).doc>>  <<
> File: 020ctr(savannah).doc >>  << File: 106 ctr (Georgia Power Co).doc >>
> << File: 153ctr(miss power).doc >>


Greg,

This is the agenda for the recruiting trip to Stanford next week.

Vince
---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 03/08/2001
11:21 AM ---------------------------

Althea Gordon@ENRON
03/07/2001 04:30 PM
To: vince.kaminski@enron.com, brad.romine@enron.com, brad.alford@enron.com,
martin.lin@enron.com, theresa_riedman@enron.net, matt_harris@enron.net,
michael.smythe@enron.net, benjamin.bell@enron.com, mauricio.mora@enron.com,
celeste.roberts@enron.com
cc: shirley.crenshaw@enron.com, paula.austin@enron.com,
dolores.muzzy@enron.com, cathy.lira@enron.com, patricia.payton@enron.com
Subject: Stanford MBA Recruiting

Thank you for agreeing to participate in the Associate Program's recruiting
efforts at Stanford Graduate School of Business.

The itinerary for the trip is as follows:

Wednesday, March 14, 7:00 p.m. to 9:00 p.m. Dinner with students selected to
interview
       Il Fornaio, the Sala Del Canaletto Room
       520 Cowper Street, Palo Alto
       (650) 853-3888

Thursday, March 15, 8:30 a.m. to 4:45 p.m.  Round 1 interviews for both
Summer and Full Time Associates
       Stanford GSB Career Services Center
       Interviewers:
       Theresa Riedman
       Brad Romine
       Brad Alford
       Martin Lin
       Michael Smythe - to be confirmed
       Benjamin Bell - to be confirmed
       Mauricio Mora - Greeter/Alternate Interviewer

Thursday, March 15, 12:15 p.m. to 1:30 p.m. Lunch with Dean George Parker
(Associate Dean of Academics) and
       Sherrie Taguchi (Director of Career Services).
       Stanford GSB Career Services Center
       We will be ordering lunch in.

Friday, March 16, 8:00 a.m. to 12:00 p.m.*   Round 2 interviews for both
Summer and Full Time Associates
       Stanford GSB Career Services Center
       Interviewers:
       Vince Kaminski
       Matthew Harris

* Please note that this is an approximate time that will be based on the
number of candidates who successfully pass Round 1 interviews on Thursday.

Your hotel information is as follows:

       Stanford Park Hotel
       100 El Camino Real
       Menlo Park
       (650) 322-1234

Upon confirmation of your participation you will receive your hotel
confirmation number.  In the event that you have not received your hotel
confirmation number please contact my assistant, Cathy Lira, at x54049.

Attire for the trip will be business casual.  If you have any questions
please feel free to give me a call at x53860.  In case of emergency (and
during the trip itself) I can be reached at (713) 416-6250.

Thank you for your support of the program.


We have scheduled a user test for Clickpaper on Saturday, July 22nd starting
at 8:30 AM on the 29th floor of the Enron building.

First, a reminder to Edward and Bob to make sure the ENA Paper group is here
(commercial only plus, at a minimum, John Jacobson).  It is up to Edward and
Bob to decide if London personnel should be here but I would recommend a
few.  They will be the "users" in the test.  We will have a script for them.
The goal is to test the site and the capability of the trading floor.  I will
explain more about this to Edward and Bob next week.

Also, Bill Bradford or his designee from credit needs to be here to review
the functionality of the credit check.  Also, Ted Murphy or his designee
needs to be here to review control.

If the test is a success, we will wipe the system clean Saturday and will
create actual customer profiles we have received in the system on Sunday.
Monday we will review everything one last time for Tuesday launch, July 25th
launch.

We will provide lunch for everyone so get to me the names of who is committed
so I can plan.

Please respond with any issues or questions.

Thanks.

GP


i dont know but we would be the prettiest in the industry.

 -----Original Message-----
From: 	Hal Lenhart <Hal.Lenhart@apollogrp.edu>@ENRON
Sent:	Friday, October 26, 2001 9:27 AM
To:	Lenhart, Matthew
Subject:	RE:

Revlon? Hmmm...cute. How do you feel about trading mascera?

-----Original Message-----
From: Matthew.Lenhart@enron.com [mailto:Matthew.Lenhart@enron.com]
Sent: Friday, October 26, 2001 8:25 AM
To: Hal.Lenhart@apollogrp.edu
Subject: RE:

sorry i had to run last night.  so the word is now that enron has about 4
or 5 companies looking to take us over.  aol, lucent, revlon?, and a few
others.  i will give you a call later.

    -----Original Message-----
   From:   Hal Lenhart <Hal.Lenhart@apollogrp.edu>@ENRON
   Sent:   Wednesday, October 24, 2001 10:05 AM
   To:     Lenhart, Matthew
   Subject:  RE:

   It looks that way. Maybe I should sell to spark a rally. Hope things are
   going well otherwise. Talk to you soon.

   -----Original Message-----
   From: Lenhart, Matthew [mailto:Matthew.Lenhart@ENRON.com]
   Sent: Wednesday, October 24, 2001 8:41 AM
   To: hfl@fp.edu
   Subject:

   enron is going to be a penny stock pretty soon.  sec is investigating
   now.

   **********************************************************************
   This e-mail is the property of Enron Corp. and/or its relevant affiliate
   and
   may contain confidential and privileged material for the sole use of the
   intended recipient (s). Any review, use, distribution or disclosure by
   others is strictly prohibited. If you are not the intended recipient (or
   authorized to receive for the recipient), please contact the sender or
   reply
   to Enron Corp. at enron.messaging.administration@enron.com and delete
   all
   copies of the message. This e-mail (and any attachments hereto) are not
   intended to be an offer (or an acceptance) and do not create or evidence
   a
   binding and enforceable contract between Enron Corp. (or any of its
   affiliates) and the intended recipient or any other party, and may not
   be
   relied on by anyone as the basis of a contract by estoppel or otherwise.
   Thank you.
   **********************************************************************


Kevin,

Thanks for the clarification.  Can you tell me if the following assumptions are correct for your pricing?

1.	Minimum volume transported is 0, maximum is 200,000/day
2.	365 days / year for 2 years

Thanks for your help.

John

 -----Original Message-----
From: 	Hyatt, Kevin
Sent:	Tuesday, July 24, 2001 6:40 PM
To:	Kiani-Aslani, John
Subject:	RE: Backhaul Rates from NNG to Waha

John, I had NNG price out volume of 200,000/day for a two year term.  Let me know if you need further info.
kh
x35559

 -----Original Message-----
From: 	Kiani-Aslani, John
Sent:	Tuesday, July 24, 2001 6:14 PM
To:	Hyatt, Kevin
Cc:	Higgins, Ned; Druzbik, Lisa
Subject:	Backhaul Rates from NNG to Waha

Kevin,

I work with Ned Higgins in Enron Compression Services.  He informed me of some transportation quotes that you had given to him for FT from Mid 4 to Mid 3, as well as IT to El Paso Waha.  Can you please tell me if there are any minimum or maximum volumetric requirements under these prices, and the term that your pricing applies to?

Please feel free to call me if you have any questions.

Thanks in advance for your help.

John Kiani
Associate - Enron Compression Services
(W) 713-345-3905