Enron May Issue More Stock to Cover Obligations
The Wall Street Journal, 10/24/01
Enron Tries To Dismiss Finance Doubts
The New York Times, 10/24/01
Surge in Optimism Prompts Straddles In Enron and Cisco
The Wall Street Journal, 10/24/01
Lay tries to assure Enron investors
Houston Chronicle, 10/24/01
OBSERVER - Busy signal.
Financial Times (U.K. edition), 10/24/01
USA: Enron mulls ways to cover portfolio shortfalls-WSJ.
Reuters English News Service, 10/24/01
Enron May Issue More Stock to Cover Obligations
Dow Jones Business News, 10/24/01
IN BRIEF / ENERGY Enron Asks Citigroup for $750-Million Loan
Los Angeles Times, 10/24/01
United States
The Globe and Mail, 10/24/01
Everest Re, St. Paul and Providian Drop, but Markets Stay Resilient
The Wall Street Journal, 10/24/01
U.S. Energy Giant Weighs a Move To Pull Out of India
The Asian Wall Street Journal, 10/24/01
UK: LNG delays could spawn shipping crisis - analysts.
Reuters English News Service, 10/24/01
INDIA PRESS:British Gas Seeks ONGC Deal For Field Control
Dow Jones International News, 10/24/01
BG Offers ONGC Brazilian Assets to Get Managing Rights in India
Bloomberg, 10/24/01

House stimulus bill would give billions to huge companies; Senate Democrats present alternative
Associated Press Newswires, 10/23/01
Wechsler Harwood Halebian & Feffer LLP Announces Class Periods
PR Newswire, 10/23/01
Stock Analysis/Call In
CNNfn: Markets Impact, 10/23/01

Economy
Enron May Issue More Stock to Cover Obligations
By Rebecca Smith and John R. Emshwiller
Staff Reporters of The Wall Street Journal

10/24/2001
The Wall Street Journal
A2
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Enron Corp. might have to come up with several hundred million dollars or more during the next 20 months to cover potential shortfalls in investment vehicles it created. Covering such shortfalls could involve issuing additional Enron shares, diluting the position of current shareholders.
However, Enron Treasurer Ben Glisan said in an interview yesterday that the company believes it can repay about $3.3 billion in notes that were sold by those investment vehicles without having to resort to issuing more stock. The notes were sold to investors during recent years by several entities -- known as the Marlin Water Trust II, the Marlin Water Capital Corp. II, the Osprey Trust and Osprey I, Inc. The notes are coming due during the next 20 months.
Mr. Glisan said assets from the entities could be sold to pay off some of the notes. Also, Enron is selling other assets. Proceeds from those transactions also could go toward repaying the notes, which ultimately are guaranteed by Enron.
He said it appears that asset sales will raise at least $2.2 billion by the end of next year. This amount includes cash proceeds of $1.55 billion from the previously announced sale of Enron's Portland General Electric utility unit. Enron hopes to complete that sale by the end of 2002.
"There are a number of other assets we believe will raise sufficient proceeds" to repay the notes, Mr. Glisan said. "But if we are wrong, we will issue equity." Mr. Glisan said a worst-case scenario would involve issuing as much as $1 billion in stock. Enron said it has about 850 million shares outstanding.
Making up any shortfall with equity has become more expensive because of the drop in Enron's share price. In 4 p.m. New York Stock Exchange composite trading, Enron shares were down 86 cents to $19.79. The stock was once again one of the most actively traded with about 27 million shares changing hands. Early this year, Enron stock was more than $80 a share.
During the past week, shares of the energy-trading giant have dropped more than 40%. Early last week, Enron reported a $618 million third-quarter loss, resulting from $1.01 billion in write-offs. The company also disclosed a $1.2 billion reduction in shareholder equity for the quarter as a result of terminating certain transactions related to a partnership that for a time was headed by Enron Chief Financial Officer Andrew S. Fastow. In July, Mr. Fastow ended his connection to the partnership in the face of growing concerns by analysts and major investors. On Monday, Enron disclosed that the Securities and Exchange Commission was looking into the transactions related to Mr. Fastow. Enron has said its dealings with the partnership were proper.
The turmoil of the past several days prompted Enron to schedule a conference call yesterday morning with Wall Street analysts and others in an effort to reassure investors. Enron Chairman and Chief Executive Kenneth Lay said while "we are extremely disappointed with our stock price . . . our businesses are performing very well." Mr. Lay and other executives said Enron has adequate liquidity to meet its needs.
Mr. Fastow, the chief financial officer, took part in the conference call. But neither he nor Mr. Lay would answer any questions concerning the Fastow-related partnership, which was known as LJM2 Co-Investment LP. Mr. Lay said the SEC was in the midst of an inquiry concerning that partnership arrangement, which has raised conflict-of-interest questions among analysts and others. Mr. Lay cited shareholder suits filed recently as another reason not to discuss the partnership questions. Mr. Lay said he was "very concerned about the way Andy's character has been loosely tossed about." He added "we continue to have the highest faith and confidence in Andy."
Internal LJM2 documents indicate that Mr. Fastow and perhaps a handful of fellow Enron officials made millions of dollars in management fees and capital increases from running the partnership. Billions of dollars of Enron assets and stock were involved in LJM2-related transactions, according to Enron SEC filings.
During the conference call, analysts -- even some who have been longtime Enron fans -- challenged executives about the Fastow partnership arrangement and the company's often opaque financial reports. "There's the appearance you are hiding something," said Goldman Sachs analyst David Fleischer. "You need to do everything in your power to demonstrate to investors that your dealings are above board."
Mr. Lay responded, "We're trying to be as transparent as we can."

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

Business/Financial Desk; Section C
Enron Tries To Dismiss Finance Doubts
By FLOYD NORRIS

10/24/2001
The New York Times
Page 1, Column 5
c. 2001 New York Times Company

Enron has ample access to cash, the company's chief executive said yesterday as he assured investors that there was no need for additional write-offs stemming from unusual financing activities.
In a conference call with investors that was hastily scheduled after Enron's stock plunged on Monday, the chief executive, Kenneth W. Lay, strongly defended the company's chief financial officer and said there was no conflict of interest involved in transactions that the Securities and Exchange Commission was looking into.
But he refused to go into detail on the transaction that Enron made with partnerships run by Andrew S. Fastow, the chief financial officer. In addition, Mr. Fastow, while declaring that Enron ''expects to continue to have sufficient liquidity to meet normal obligations,'' declined to answer any questions about it.
The conference call, which began just as trading opened on the New York Stock Exchange, at first seemed to be reassuring investors. Within minutes of the beginning of the call, the share price rallied to $23.25. But it soon began falling, and ended the day down 86 cents, at $19.79. The day's low of $19.62 was the lowest since Jan. 12, 1998, and was down 78 percent from the high set by the stock in the summer of 2000.
Until recently, most investors focused on the company's reported operating earnings, which showed good results as it became a leading player in energy markets. But the focus has shifted to a series of transactions, some involving off-balance-sheet financing. One, involving partnerships controlled by Mr. Fastow, led to a $1.2 billion reduction in shareholder equity that raised concern last week and led to S.E.C. inquiries that the company disclosed on Monday.
One of the company's strongest supporters has been David Fleischer, an analyst at Goldman, Sachs. But he told Mr. Lay on the call yesterday that Enron had to be more forthcoming with information. ''There is an appearance that you are hiding something,'' he said.
After the call, Mr. Fleischer expressed disappointment. ''They've engaged in a number of transactions that one wonders about, and that are hard to understand,'' he said in an interview. ''They have not been as forthcoming in explaining them'' as is needed, he said. But he said he was still recommending the stock. ''I don't think accountants and auditors would have allowed total shenanigans,'' he said. ''In the absence of total shenanigans going on at this company, there is tremendous value here.''
Mr. Lay cited the S.E.C. inquiries as a reason for not discussing details on the transactions involving the partnerships that were controlled by Mr. Fastow. But he emphasized that both he and the company's board ''continue to have the highest faith and confidence in Andy.''
Mr. Lay said that auditors from Arthur Andersen had carefully reviewed Enron's reporting in conjunction with another off-balance-sheet vehicle, called Marlin. That company owns one-third of Azurix, an Enron subsidiary that owns Wessex, a British water utility. The auditors ''have determined there is no write-down required,'' he said under questioning by Richard Grubman of Highfields Capital Management, a money management firm.
Mr. Grubman said that Marlin owed almost $1 billion on debt that was guaranteed by Enron but had no assets other than the Azurix stake. Noting that Enron had paid about $300 million to buy a third of Azurix from public shareholders and had since taken write-downs on its investment in Azurix, Mr. Grubman asked why the company was not setting up reserves to cover its exposure on that debt, which under a complicated arrangement could end up being satisfied through the issuance of Enron shares.
Mr. Lay said that no action was needed but declined to address details. Eventually he cut off Mr. Grubman. ''I know you're trying to drive the stock price down, and you've done a pretty good job of it,'' Mr. Lay said. ''But let's move on to the next question.''
Mr. Fastow said the company was having no problem issuing commercial paper and had $1.85 billion in such debt outstanding. He said it was backed by $3.35 billion in bank lines of credit, of which $1.75 billion will expire next May if it is not renewed.
Mr. Lay said he was sorry about ''the misunderstanding'' that resulted when his brief mention of the $1.2 billion reduction in shareholder equity in a conference call last week was not noticed by some analysts. That reduction would have been apparent if the company had released its balance sheet with the earnings report, but it did not. He said the company would consider releasing balance sheets with earnings reports in the future, but made no promises.
The large reduction in shareholder equity did not affect reported earnings, and so was not in the earnings release. But it raised concerns that some of the sophisticated financing techniques used by the company might be effectively keeping losses off the earnings statement. The S.E.C. is expected to look into whether the accounting for that transaction was correct.
After one questioner on the call said it would be easier to understand Enron if it released financial statements for the special purpose vehicles that were set up to enter into such transactions as Marlin, Mr. Lay said the company ''will look into providing'' such statements.

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

Options Report
Surge in Optimism Prompts Straddles In Enron and Cisco
By Kopin Tan
Dow Jones Newswires

10/24/2001
The Wall Street Journal
C14
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -- Bullish calls traded heavily early as investors, encouraged by the ability of stocks to shrug off anthrax scares, bought calls to replace stock holdings and to ride any rallies.
At one point, the ratio of equity calls traded to puts at the Chicago Board Options Exchange fell to 0.28, compared with 0.68 Friday and Monday's three-month closing low of 0.42.
The surge of optimism -- also evident in the CBOE market-volatility index, or VIX -- prompted traders to begin covering the downside, just as the widely watched stock indexes began to retreat. Contrarians believe the CBOE equity put/call ratio sends a bearish signal when it is below 0.40. By the session's end, the ratio was at 0.49.
Buyers drove robust call trading in Cisco Systems, a maker of Internet switching equipment, and the implied volatility also rose, noted a trader at Letco, the CBOE specialist for Cisco options. One investor bought thousands of January 20 calls, paying about $115 a contract for the right to buy 100 shares of the stock at $20 a share until mid-January. At 4 p.m. in Nasdaq Stock Market trading, Cisco was down 42 cents at $16.41. The January 20 calls fell 10 cents to 90 cents on CBOE volume of 27,048 contracts, while 6,861 contracts traded at the Pacific Exchange.
The implied volatility of Enron's near-month options remains high, even as the energy concern's executives sought to calm investors and address their concerns, following news that the Securities and Exchange Commission is looking at the Houston company.
The volatility spike makes Enron a viable candidate for investors looking to sell straddles -- selling calls and puts with the same strike price and expiration. In particular, Enron's at-the-money January 20 straddles offer rich premiums, said Lillian Seidman of the Seidman/Skupp options team at Miller Tabak & Co., of New York. With Enron down 86 cents at $19.79 in New York Stock Exchange composite trading, selling January 20 straddles would earn an investor about $750 a straddle -- a rich premium that could offset the cost of buying stock.
To be sure, selling straddles can be risky and the losses significant if the stock, which already had fallen about 38% in a week, makes a big move in either direction before the straddles expire. Investors typically buy straddles if they expect a big move in the underlying stock, while sellers pocket premium and hope the stock remains in a tight trading range.

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

Oct. 24, 2001, 12:05AM
Houston Chronicle
Lay tries to assure Enron investors
Company's credibility questioned
By LAURA GOLDBERG
Copyright 2001 Houston Chronicle
Enron had safeguards in place to protect shareholder interests while its chief financial officer ran two investment partnerships that did business with Enron, the company's chief executive officer said Tuesday.
The Houston-based energy trader has been caught in a storm of criticism over Chief Financial Officer Andrew Fastow's former role with two partnerships, LJM Cayman and LJM2 Co-Investment, that entered into complex financing and hedging arrangements with Enron.
Enron disclosed Monday that the Securities and Exchange Commission opened an "informal inquiry" into transactions between Enron and the two partnerships.
It declined to say if the SEC is looking into other transactions.
After the disclosure, Enron's stock fell almost 21 percent Monday. Tuesday it dropped another 86 cents to close at $19.79.
The news brought to the forefront ongoing complaints from some on Wall Street that some of Enron's financial mechanisms are difficult to understand and that Enron doesn't provide detailed enough financial data about its performance.
Tuesday morning, Enron Chairman and CEO Ken Lay held a conference call for investors and analysts, aimed at addressing their concerns.
It remains to be seen whether he succeeded, but based on the tenor of questions during the call, it's doubtful he achieved that result.
David Fleischer, a Goldman Sachs analyst, told Lay that the company's credibility was being severely questioned and called on him to do everything in his power to explain to investors that Enron's dealings are aboveboard.
"I, for one, find the disclosure is not complete enough for me to understand and explain all the intricacies of all those transactions," he said.
Lay told callers he was limited in speaking about the LJM partnerships because of the SEC inquiry.
He did say Enron was aware an "inherent conflict of interest" would result from its chief financial officer running investment partnerships doing business with Enron.
In response, Enron set up procedures, which Lay said were rigorously followed, to ensure shareholder interests wouldn't be compromised.
"There was a Chinese Wall between LJM and Enron," he said, adding that Enron wasn't obligated to do deals with the LJM entities and did so when it was in Enron's best interest.
Lay and Enron's board continue to have the "highest faith and confidence" in Fastow, he added.
Fastow resigned his roles with the LJM entities in June after criticism from Wall Street.
Enron ended its financial relationships with the partnerships.
It took a $35 million charge in the third quarter and reduced shareholders' equity by $1.2 billion as a result.
During the call Enron executives also addressed other issues.
They stressed that Enron expects to continue having sufficient liquidity to carry out normal operations and took questions about two financing vehicles, Whitewing and the Atlantic Water Trust, that it set up so it could invest in certain assets without issuing debt or Enron shares at the time of the investments.
If Enron should lose its current investment-grade quality debt rating, commitments made as part of those financing vehicles could trigger steps that would cause the value of Enron's current outstanding shares to become diluted.
Jeff Dietert, an analyst with Simmons & Co. International in Houston who follows Enron, was among those on the call. He said afterward he received some new information about Enron's lines of credit.
"I had hoped to get a little bit more out of the call," he said.

OBSERVER - Busy signal.

10/24/2001
Financial Times (U.K. edition)
(c) 2001 Financial Times Limited . All Rights Reserved

Busy signal
Enron should know plenty about bandwidth.
Through Enron Broadband Services, the giant energy company boasts about "developing an open and efficient market for bandwidth that provides liquidity, reliability, price transparency and guaranteed service levels".
But there were no guarantees about service levels yesterday, when Enron held a conference call to "address investor concerns" about its financial dealings.
Despite the bandwidth expertise, the call - the first time that Andrew Fastow, chief financial officer, has faced questions about the transactions from analysts - was available to just 300 lucky telephone diallers. A live webcast of the call was accessible on Enron's website, but without the chance to grill Enron brass.
Those investors and journalists who did make it through (some waited 20 minutes for their place at the party; others found their lines dropped mid-stream) heard volatile exchanges between analysts and company executives. An analyst chided for his part in lowering the company's share price was told by Ken Lay, Enron's chairman, that his question quota was up and it was time to move on.
(c) Copyright Financial Times Ltd. All rights reserved.
http://www.ft.com.

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

USA: Enron mulls ways to cover portfolio shortfalls-WSJ.

10/24/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 24 (Reuters) - Enron Corp. Treasurer Ben Glisan said the company thinks it can repay about $3.3 billion in notes sold by investment vehicles it created without having to issue more stock, the Wall Street Journal reported in its online edition on Wednesday.
Enron may need to come up with funds to cover potential shortfalls in those investment vehicles, which could involve issuing additional shares, thereby diluting the position of current shareholders, the report said.
The report, which cites a Tuesday interview with Glisan, said the notes were sold to investors during recent years by several entities and are coming due during the next 20 months. The entities are known as the Marlin Water Trust II, the Marlin Water Capital Corp. II, the Osprey Trust and Osprey I Inc, the report said.
According to the report, Glisan said assets from those entities could be sold to pay off some of the notes. Enron is selling other assets, the report said. According to the newspaper, proceeds from those sales could go toward repaying the notes, which are ultimately guaranteed by Enron.
Glisan, according to the report, said it looks like asset sales will raise at least $2.2 billion by the end of 2002.
"There are a number of other assets we believe will raise sufficient proceeds" to repay the notes, Glisan said, according to the report. "But if we are wrong, we will issue equity."
According to the report, Glisan said a worst-case scenario would involve issuing as much as $1 billion in stock.
Enron held a conference call on Tuesday, seeking to assuage investor concerns after U.S. regulators said they were looking into transactions involving the company's chief financial officer and its stock shed more than $10 billion in value over the past week.
Enron said on the call it can tap $3.35 billion from a credit line, suggesting it has enough liquidity to operate its core trading and marketing business, which can experience wide swings in cash flow, depending on commodity prices and market hedges.

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

Enron May Issue More Stock to Cover Obligations

10/24/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Enron Corp. might have to come up with several hundred million dollars or more during the next 20 months to cover potential shortfalls in investment vehicles it created, Wednesday's Wall Street Journal reported.
Covering such shortfalls could involve issuing additional Enron (ENE) shares, diluting the position of current shareholders.
However, Enron Treasurer Ben Glisan said in an interview yesterday that the company believes it can repay about $3.3 billion in notes that were sold by those investment vehicles without having to resort to issuing more stock. The notes were sold to investors during recent years by several entities -- known as the Marlin Water Trust II, the Marlin Water Capital Corp. II, the Osprey Trust and Osprey I, Inc. The notes are coming due during the next 20 months.
Mr. Glisan said assets from the entities could be sold to pay off some of the notes. Also, Enron is selling other assets. Proceeds from those transactions also could go toward repaying the notes, which ultimately are guaranteed by Enron.
He said it appears that asset sales will raise at least $2.2 billion by the end of next year. This amount includes cash proceeds of $1.55 billion from the previously announced sale of Enron's Portland General Electric utility unit. Enron hopes to complete that sale by the end of 2002.
"There are a number of other assets we believe will raise sufficient proceeds" to repay the notes, Mr. Glisan said. "But if we are wrong, we will issue equity." Mr. Glisan said a worst-case scenario would involve issuing as much as $1 billion in stock. Enron said it has about 850 million shares outstanding.
Making up any shortfall with equity has become more expensive because of the drop in Enron's share price. In 4 p.m. New York Stock Exchange composite trading, Enron shares were down 86 cents to $19.79. The stock was once again one of the most actively traded with about 27 million shares changing hands. Early this year, Enron stock was more than $80 a share.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved.

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

Business; Financial Desk
IN BRIEF / ENERGY Enron Asks Citigroup for $750-Million Loan
Bloomberg News

10/24/2001
Los Angeles Times
Home Edition
C-2
Copyright 2001 / The Times Mirror Company

Enron Corp., the biggest energy trader, has asked Citigroup Inc. to arrange a $750-million loan, ensuring access to credit if the beleaguered company is cut off from money markets, say people familiar with the matter.
Enron's shares and bonds plunged after the firm said the Securities and Exchange Commission was probing its finances.
The Houston-based business, whose stock has fallen 75% this year amid concerns about failed investments, depends on a $3-billion commercial paper, or short-term debt, program to finance day-to-day operations.
As a second-tier commercial paper borrower, any ratings drop may cut off Enron from the commercial paper market and raise costs of short-term debt.
Enron shares dropped 86 cents to close at $19.79 on the New York Stock Exchange.

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

Report on Business: The Wall Street Journal
What's News
United States
Wall Street Journal

10/24/2001
The Globe and Mail
Metro
B9
"All material Copyright (c) Bell Globemedia Publishing Inc. and its licensors. All rights reserved."

Enron Corp. might have to come up with several hundred million dollars over the next 18 months to cover potential shortfalls in investment vehicles it created, treasurer Ben Glisan said. The possible shortfall related to about $3.2-billion (U.S.) in notes that related entities sold to investors since 1999, he said. Proceeds from those notes were invested in various Enron assets. Mr. Glisan said those notes come due over the next 18 months and Enron still hopes to sell enough assets to fully repay the notes. However, making up any shortfall with funds raised by selling stock has become more expensive as Enron's share price has plunged. Over the past week, shares of the energy trading giant have fallen more than 40 per cent.

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

Abreast of the Market
Everest Re, St. Paul and Providian Drop, but Markets Stay Resilient
By Robert O'Brien
Dow Jones Newswires

10/24/2001
The Wall Street Journal
C2
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -- Stocks ended only slightly lower as the recently resilient market largely withstood the effects of dismal corporate profit statements.
Shares of drug maker Pharmacia fell $4.37, or 13%, to $38.39, after the company issued third-quarter results that topped Wall Street's forecasts, but also issued 2002 profit projections that left some analysts disappointed.
In fact, several drug companies saw their stock prices fall as investors responded to their quarterly profit statements. Shares of Bristol-Myers Squibb, for example, gave up 1.68, or 2.8%, to 58.02, American Home Products lost 1.40, or 2.3%, to 58.90, and Schering-Plough eased 74 cents, or 1.9%, to 38.17.
Shares of several insurance and reinsurance providers also pulled back in reaction to profit statements, with Everest Re falling 6.40, or 8.4%, to 69.50, and St. Paul dropping 93 cents, or 1.9%, to 49.25.
Power utility Exelon, Chicago, was set back 3.42, or 7.7%, to 41.08, after its third-quarter results topped forecasts, but drew critical comments from several analysts.
Nevertheless, even with the grim earnings outlook, investors showed continued reluctance to throw in the towel.
"Institutional investors are busy trying to gauge the sentiment in the market," Richard Cripps, market strategist at Legg Mason, said. "Their fear is that the market makes a four or five percent upside run very quickly, which is eminently possible, and they can't afford to miss it."
Some seasonal factors also have played a role in supporting stock prices recently. For many mutual funds, for example, their fiscal year concludes at the end of October. Some are doing what is called window dressing -- buying stocks that their investment disciplines say should be in their portfolio -- while others need to boost their overall exposure to the equities market.
Whatever the reason, the market has been making some big moves when prices have risen, and modest moves when they have declined. The Dow Jones Industrial Average, which ran up 172.92 points Monday, declined 36.95 points yesterday, a loss of 0.39%, to 9340.08.
The Nasdaq Composite Index declined 3.64 points, or 0.21%, to 1704.44. Volume levels showed some improvement over Monday's rather sluggish pace.
Investors haven't completely rolled over. In a handful of the situations in which their ire has been raised, they have lashed those stocks repeatedly. Shares of SBC Communications, one of Monday's disappointments, got punished again, falling 2.62, or 6.3%, to 38.78, and fell back in range of a 52-week low of 38.20, set June 26.
Consumer lender Providian Financial got sent to a fresh 52-week low, off 41 cents, or 8.3%, to 4.55. Enron, which has fallen on concerns about conflicts of interest in dealings among the company, a power marketer, and partnerships that were set up and run by its chief financial officer, dropped an additional 86 cents, or 4.2%, to 19.79, hitting a 52-week low intraday.
There were some winning profit statements. Shares of CSX, for example, rose 2.45, or 7.5%, to 35.19, after the Richmond, Va., rail-freight concern reported third-quarter earnings that, while they fell short of year-ago performance, nevertheless managed to top Wall Street's forecasts.
Vitesse Semiconductor (Nasdaq), a Camarillo, Calif., maker of integrated circuits used in high-bandwidth communications networks, added 43 cents, or 4.5%, to 9.99, even though the company's losses for its fiscal fourth quarter proved sharper than expected.
NetIQ (Nasdaq) dropped 4.23, or 14%, to 26.17, even though the Santa Clara, Calif., developer of networking software posted fiscal first-quarter results late Monday that topped what analysts had been looking for.
Chartered Semiconductor (Nasdaq) advanced 40 cents, or 2.1%, to 19.10. The Singapore chip foundry reported third-quarter results that showed a loss for the period, but nevertheless proved to be a little more encouraging than analysts had projected.
Shares of several cable-television operators moved higher. Charter Communications added 59 cents, or 4.5%, to 13.62, Comcast gained 40 cents, or 1.1%, to 36.82, and Cox Communications rose 44 cents, or 1.1%, to 40.15. Thomas Weisel Partners said that cable operators should benefit from SBC Communications' decision, revealed Monday with its quarterly results, to scale back the growth of its digital subscriber line service offering.
EarthLink (Nasdaq) slid 2.51, or 14%, to 14.85. The Atlanta Internet service provider issued stronger-than-expected third-quarter results, but also signaled that its customer growth had slowed.
AT&T Wireless increased 1.26, or 9.7%, to 14.20. The Redmond, Wash., provider of wireless communications services reported third-quarter results that topped what analysts had been looking for.
Several steelmakers moved higher following a ruling late Monday by the U.S. Trade Commission, which said it determined that domestic steelmakers have been significantly harmed by cheap imports; the ruling could lead to the erection of barriers limiting steel imports. USX-U.S. Steel Group gained 28 cents, or 1.9%, to 15.02, Nucor rose 1.05, or 2.5%, to 42.87, and AK Steel improved 41 cents, or 4.6%, to 9.31.
McKesson advanced 1.56, or 4.2%, to 38.95. The San Francisco drug distributor and health-care information technology provider posted stronger-than-expected fiscal second-quarter results.
Watson Pharmaceuticals fell 3.05, or 6%, to 48.11. UBS Warburg reduced its rating on the Corona, Calif., drug maker, and lowered its earnings projections for the company.
Furniture Brands dropped 2.04, or 8.9%, to 20.96. UBS Warburg cut its rating on the St. Louis furniture manufacturer, saying it believes the company has lost market share to rival manufacturers.

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

International News
U.S. Energy Giant Weighs a Move To Pull Out of India
Associated Press

10/24/2001
The Asian Wall Street Journal
9
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -- Following Enron Corp. U.S. energy company AES Corp. has turned to the Indian prime minister for help in settling its grievances with a state government.
In a letter to Atal Bihari Vajpayee, AES Corp.'s President Dennis W. Bakke said his company's determination to continue in India is being tested by the government of eastern Orissa state.
A copy of the letter, dated Oct. 1, was made available to the Associated Press.
AES operates two power plants in Orissa, holds 49% of the Orissa Power Generation Corp. and manages the main power distribution company in the state.
AES and Enron are the only major American power companies to make big investments in India since the government allowed foreign investment in the sector in the early 1990s.
In his letter, Mr. Bakke drew Mr. Vajpayee's attention to the "expropriation, repeated contract violations, intimidation . . . and direct interference with day-to-day management" by the state government and its agencies.

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

UK: LNG delays could spawn shipping crisis - analysts.
By Pete Harrison

10/24/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, Oct 24 (Reuters) - The transport chain supporting the global LNG industry will be finely poised in coming years between profitability and a crisis of oversupply if projects miss their deadlines, shipping analysts warn.
More LNG tankers than ever before are being constructed in the shipyards of the Far East, many of them ordered speculatively against anticipated demand, which might emerge later than scheduled.
"The issue is timing," Jarle Sjo, shipping equity analyst at Oslo-based investment bank First Securities told Reuters.
"Historically, LNG projects have been delayed - you can estimate at about six months - and if that happens it will probably get ugly in the short term," he added.
The world fleet of LNG tankers currently numbers 123, but will have swollen by about 37 percent by the end of 2004, according to shipping database Fairplay.
Gas industry analysts expect some LNG projects to be delayed as a result of the economic downturn, excess capacity at existing plants in Asia and a sharp fall in U.S. natural gas prices this year.
Svein Erik Amundsen, Managing Director of Norwegian shipping group Bergesen, said that a sustained economic downturn could have "consequences."
"I wouldn't be surprised by project delays," he told Reuters. "This could result in some tonnage coming out of the yards without immediate employment."
"I think you can say we're still optimistic, but more cautiously optimistic than before," he added. Bergesen has three new LNG ships on order, two of which have already been contracted out to Belgian gas distributor Distrigas.
STOP AND THINK
The world's largest and only pure LNG shipping player, Golar LNG, historically bullish in its outlook, has also been forced to stop and consider the problem.
Golar has six ships locked into long-term contracts, but four more are under construction at South Korea's Daewoo and Hyundai yards and do not yet have firm future employment.
"There is a reasonable balance between the production coming onstream and the amount of ships ordered," Golar Executive VP Sveinung Stohle told Reuters, "The only risk is things might be delayed."
Stohle said that contracting out the new ships remained an option, but it was also developing an LNG trading arm, which might have a use for some of them.
Golar's closest competitor in terms of size, Exmar, is taking a more traditional approach. It has six ships on order and said it would leave as little as possible to chance.
"We've chartered out all of them except the Samsung ship, which is under offer for the (Qatari) RasGas tender," Managing Director Nicolas Saverys told Reuters. Four are booked out to El Paso and one to Enron.
He said that until all the upcoming projects had their Supply Production Agreements in place, it would be too risky for companies to place fresh ship orders.
"It's a good time to wait," said Saverys.

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

INDIA PRESS:British Gas Seeks ONGC Deal For Field Control

10/24/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- British Gas has offered India's Oil & Natural Gas Corp. (P.ONG) equity in its exploration acreage in Brazil and a cash settlement in lieu of operatorship of the Tapti Panna and Mukta oil fields, the Economic Times reported Wednesday.
ONGC and Reliance Industries Ltd. (P.REL) are claiming operatorship of the Tapti Panna and Mukta oil fields following Enron Oil & Gas India Ltd.'s 30% stake sale to BG, according to the report.
State-owned ONGC holds a 40% stake in the Panna-Mukta and Tapti fields and Reliance owns 30%.
The Enron Oil & Gas stake sale will fall through if BG isn't given the operatorship of the oil fields, Nigel Shaw, vice president of BG India said in the report.
Shaw said the equity partners are in discussions on the issue of operatorship, the report said.
British Gas is a unit of BG Group PLC (BRG). Enron Oil & Gas is a unit of Enron Corp. (ENE).

Newspaper Web site: http://www.economictimes.com

-By Dow Jones Newswires; 91-11-461-9426; ruchira.singh@dowjones.com

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

BG Offers ONGC Brazilian Assets to Get Managing Rights in India
2001-10-24 01:12 (New York)

     Mumbai, Oct. 24 (Bloomberg) -- BG Group Plc has offered Oil &
Natural Gas Corp. a stake in exploration projects in Brazil if
India's biggest oil producer allows BG to run the oil fields it
bought from Enron Corp. in India, the Economic Times reported,
without citing any officials.

     BG's purchase of Enron's 30 percent stake in the three oil
and gas areas in India is contingent on winning the right to
manage the developments. Reliance and ONGC, which together own 70
percent of the exploration venture, have both claimed rights to
run the oil and gas fields.

     BG has asked ONGC to waive its right to decide the operator
after Enron quits in return for a stake in its oil and gas sites
in Brazil, the paper said. It didn't give details on the Brazilian
interests BG may offer ONGC. BG has set Oct. 31 as a deadline to
resolve the ownership dispute, the paper said.

     The purchase from Enron would give BG a 30 percent stake in
the Tapti and Panna-Mukta oil and gas fields, as well as 63
percent of an untapped deposit on the west coast of India. The
assets hold more than 170 million barrels of oil and gas.

     Before agreeing with BG, Enron rejected bids from its Indian
partners, ONGC and Reliance, as well as from the nation's biggest
refiner, Indian Oil Corp.

House stimulus bill would give billions to huge companies; Senate Democrats present alternative
By CURT ANDERSON
AP Tax Writer

10/23/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

WASHINGTON (AP) - General Motors, IBM and Kmart are among corporations that would receive billions of dollars in tax refunds under a $100 billion House Republican economic stimulus package. Democrats say it is far too generous to companies and does too little for individuals.
Seven companies would get a total of $3.3 billion in refunds of alternative minimum taxes they paid as far back as 1986. The tax, which the House legislation also would repeal outright, is intended to ensure a basic minimum income tax is paid by companies and individuals that claim numerous deductions and credits.
IBM would get a $1.4 billion refund, according to the nonpartisan Congressional Research Service, while GM would get $832 million, Kmart $102 million and General Electric $671 million. Others specified for big refunds include energy giant Enron, at $254 million; U.S. Steel, $39 million; and grocery chain Kroger, $9 million.
In addition, the study found that Ford Motor Co. would get a refund that could total $2.3 billion, while Chevron's could reach $314 million.
Counting repeal of the tax, corporations would get more than $25 billion in tax relief from these minimum tax provisions in 2002 alone. In addition, the bill would make permanent a temporary tax break for financial services firms doing a lot of overseas business, providing them $21 billion in tax relief over 10 years.
The generous corporate tax breaks are among the most contentious items in the House GOP measure, scheduled for a floor vote Wednesday. Democrats say the measure is certain to change once it reaches the Senate; the Bush administration also has signaled that $100 billion is too costly.
"It's clear the House bill cannot pass the Senate as it is," said Sen. John Breaux, D-La.
For individuals, the House legislation includes a new round of tax rebate checks for workers who didn't get them this summer and a cut in the current 27 percent income tax rate to 25 percent in 2002, four years earlier than under the just-enacted tax cut. The measure also reduces capital gains rates from 20 percent to 18 percent for most taxpayers, enhances business equipment write-offs and allows companies to deduct current losses against taxes paid five years earlier.
The primary sponsor, Ways and Means Committee Chairman Bill Thomas, said in a newspaper opinion piece published Tuesday in USA Today that the legislation "is a shot of adrenaline" that will help restart the economy while not triggering inflation.
"Businesses generate jobs, and jobs are the core of a strong economy," wrote Thomas, R-Calif.
While bipartisan support backs some of the House items, Senate Democrats have been pushing for expanded unemployment benefits and help for workers who lose health insurance. Sen. Max Baucus, chairman of the Senate Finance Committee, presented a $70 billion proposal Tuesday that would extend unemployment benefits by 13 weeks, provide a 50 percent federal match for COBRA health insurance policies and allow more workers to qualify for Medicaid.
The legislation also includes rebate checks and some business items similar to the House bill but not the capital gains reduction or the alternative minimum tax relief. Tax cuts in the Baucus measure would total $35 billion in 2002, far below the House GOP level.
"This proposal appropriately responds to the sign of the times, helping this nation get back to work and recover quickly," said Baucus, D-Mont.
Other Democrats were working on spending programs. Senate Appropriations Committee Chairman Robert Byrd, D-W.Va., said he was putting together a $20 billion package that included hiring extra customs and border agents and food inspectors, augmented security at nuclear plants and purchase of more vaccines.
Sen. Charles Grassley, R-Iowa, said President Bush does not want the stimulus bill laden with additional spending.
"Everything in this package needs to be stimulative," Grassley said. "There needs to be more done on the investment side."
---
On the Net: House members: http://www.house.gov/house/MemberWWW.html

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

Wechsler Harwood Halebian & Feffer LLP Announces Class Periods

10/23/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)

DQE, Inc. (DQE); Enron Corp. (ENE)
NEW YORK, Oct. 23 /PRNewswire/ -- Notice to persons who transacted in the following securities and respective class periods: CORPORATION CLASS PERIOD DUE DATE
DQE, Inc. 12/06/00-04/30/01 12/05/01
(NYSE: DQE)
Enron Corp. 01/18/00-10/17/01 12/21/01
(NYSE: ENE)
Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") (http://www.whhf.com) has been retained to investigate claims or filed class action complaints involving the securities of the above companies on behalf of investors.
Wechsler Harwood has extensive experience representing shareholders in class actions and has served as lead counsel on behalf of shareholders in many such actions. The reputation and expertise of this firm in shareholder and other class actions has repeatedly been recognized by the courts.
If you wish to discuss these actions, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Wechsler Harwood Halebian & Feffer LLP, 488 Madison Avenue, New York, New York 10022, by calling toll free 877-935-7400 or by contacting: Patricia Guiteau
Wechsler Harwood Shareholder Relations Department; DQE, Inc.:
pguiteau@whhf.com or whhfus@yahoo.com.
Ramon Pinon, IV
Wechsler Harwood Shareholder Relations Department; Enron Corp.:
rpinoniv@whhf.com or whhfus@yahoo.com.
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X72542557

/CONTACT: For DQE - Patricia Guiteau, pguiteau@whhf.com, or For Enron - Ramon Pinon, IV, rpinoniv@whhf.com, both of Wechsler Harwood Shareholder Relations Department, whhfus@yahoo.com/ 18:37 EDT
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Business
Stock Analysis/Call In
Bruce Francis, Kathleen Hays

10/23/2001
CNNfn: Markets Impact
(c) Copyright Federal Document Clearing House. All Rights Reserved.

KATHLEEN HAYS, CNNfn ANCHOR, MARKETS IMPACT: Both the Dow and the Nasdaq lost ground today after another big round of earnings news.
FRANCIS: Lets go to Keith in Alaska with a quick question for Don and Don let`s give us a zippy answer to.
LUSKIN: All right.
CALLER: Hey Don I like to know as far as Enron (URL: http://.www.enron.com/) is concerned, how representative of the energy sector is this because I`ve been watching as a small investor that`s kind of brand new, watching it just kind of plummet. So and I`m only investing a little bit every month in it but you think that`s pretty wise idea just kind of keep on doing small investments?
LUSKIN: Well as a general investing strategy yes but Enron is a special case where we have a company that`s in bad trouble. We had a CEO who basically left without explanation a couple of months ago, then yesterday the CFO has been accused of some pretty strange looking self dealing issues. We don`t know how that`s going to resolve but this is a company under a cloud so you might want to hold off on your buying program until that cloud lifts a little bit.
FRANCIS: All right Don, thank you very much; we appreciate it. Don Luskin.
LUSKIN: All right.

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


Enron Asks Citigroup for $750 Mln Loan, People Say (Update1)
Bloomberg, 10/23/01

Enron Corp. Cut to `Reduce' at Edward Jones
Bloomberg, 10/23/01

Enron CFO: Company Has Sufficient Liquidity
Dow Jones News Service, 10/23/01
Enron says shareholders' 'best interests' were sought in all LJM dealings
AFX News, 10/23/01
US class action suit filed against Enron for misleading statements
AFX News, 10/23/01
Word of SEC probe puts Enron into deep dive: Problems mount
National Post, 10/23/01
City - SEC inquiry sparks Enron share fall.
The Daily Telegraphm 10/23/01
Shares of Enron Plummet 21% Energy: SEC requests information from company on series of unusual financial deals tied to executive.
Los Angeles Times, 10/23/01

Enron Asks Citigroup for $750 Mln Loan, People Say (Update1)
2001-10-23 10:11 (New York)

Enron Asks Citigroup for $750 Mln Loan, People Say (Update1)

     (Adds comment from CFO Fastow in fourth paragraph, Enron's
short-term borrowing rates in seventh paragraph.)

     New York, Oct. 23 (Bloomberg) -- Enron Corp., the biggest
energy trader, has asked Citigroup Inc. to arrange a $750 million
loan, ensuring access to credit if the embattled company is cut
off from money markets, say people familiar with the matter.

     Enron's shares and bonds plunged yesterday after the company
said the Securities and Exchange Commission was probing its
finances. The Houston-based business, whose stock has fallen 75
percent this year amid concerns about failed investments, depends
on a $3 billion commercial paper, or short-term debt, program to
finance day-to-day operations.

     Earlier this month, Moody's Investors Service placed all $13
billion of the company's long-term debt securities on watch for
possible downgrade. As a second-tier commercial paper borrower,
any drop in its rating may cut off Enron from the commercial paper
market and raise the costs of short-term debt.

     ``We understand that our credit rating is critical to both
the capital markets and our counterparties,'' Enron's Chief
Financial Officer Andrew Fastow said on a conference call today.
He said Enron has $3.5 billion available on bank credit lines,
giving it enough cash to operate normally.

     Enron shares rose as much as 12.6 percent during the call to
$23.25. They pared the gain to $21.80, up $1.15.

     Dan Noonan, a spokesman for Citigroup's Citibank NA unit,
declined to comment. Mark Palmer, a spokesman for Enron, declined
to comment.

                      Commercial Paper Rates

     Enron was paying 3.15 percent to issue commercial paper until
Oct. 31, which is as much as 15 basis points more than companies
with the same ``A2/P2'' short-term credit ratings that are not on
credit watch. Enron's short-term debt is not on review for a
possible downgrade.

     Enron has previously turned to Citigroup for finance and
advice. In 1999, Citigroup's Salomon Smith Barney unit advised the
company on its $1.45 billion acquisition of three natural gas-
fired power plants from Cogen Technologies Inc. Citibank, along
with J.P. Morgan Chase & Co., this year arranged a $1.75 billion
loan.

     Earlier this week, an investor sued Enron, saying two
partnerships cost the company $35 million and Fastow's leadership
of them was a conflict of interest.

     The SEC has asked Enron about partnerships and affiliated
companies headed by Fastow. Dismantling some of the partnerships
would cost Enron or its shareholders as much as $3 billion, Ray
Niles, a Salomon Smith Barney analyst, wrote in a report to
investors.

     Enron created partnerships and affiliated companies to buy
and sell assets such as power plants to lower the debt on its
books.

     Investors said they were concerned that Enron may be forced
to dismantle the affiliated companies by paying off the owners in
cash or stock. Chief Executive Ken Lay said last week he may have
to ``unravel'' agreements that created the companies if Enron's
debt ratings fall too far.

--Mark Lake in the New York newsroom (212) 893-5989 or

Enron Corp. Cut to `Reduce' at Edward Jones
2001-10-23 11:42 (New York)

     Princeton, New Jersey, Oct. 23 (Bloomberg Data) -- Enron Corp. (ENE US)
was downgraded to ``reduce'' from ``accumulate'' by analyst Zach Wagner at
Edward Jones.

--Michael O. Donohue in Princeton, New Jersey, (+1)609-279-3756.

Enron CFO: Company Has Sufficient Liquidity
By Christina Cheddar
Of DOW JONES NEWSWIRES

10/23/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -(Dow Jones)- Enron Corp. (ENE) Chairman and Chief Executive Kenneth Lay said the company had procedures in place to avoid conflicts of interest in dealings between Enron and partnerships that were set up and run by its chief financial officer, Andrew Fastow.
Last week, the Securities and Exchange Commission asked the Houston energy trading company to provide additional information about the partnerships, which Enron said were off-balance sheet financing vehicles used to hedge against fluctuations in the market.
In a conference call held Monday to discuss investor concerns about the SEC investigation and related matters, Lay said there was a "Chinese wall" in place to protect the interest of Enron shareholders.
The procedures were "rigorously followed," Lay said.
In previous filings with the SEC, Enron said the terms of the transactions with the partnerships were "reasonable compared to those which could have been negotiated with unrelated third parties."
Fastow resigned from the partnerships, which were known as LJM Cayman LP and LJM2 Co-Investments LP in late July.
The company also is involved in other off-balance sheet financing vehicles, including Marlin Water Trust II and Whitewing.
During the conference call, investors said they were frustrated by the complex nature of the trusts, and asked for more information.
Lay said the company would be providing a list of "Frequently Asked Questions" on its Web site later Tuesday that may provide more details.
After Enron disclosed the SEC investigation Monday, the company's stock sunk to its lowest level in 52 weeks, $19.67. Enron shares were recently trading up 47 cents, or 2.3%, at $21.12, in brisk volume that has already surpassed its average daily turnover of 6.3 million shares.
Lay said he was "extremely disappointed" in the current stock price.
"Our businesses are performing very well and we are continuing to conduct business," he said.

During the conference call, Enron officials declined to specify Fastow's role in the partnership, citing the ongoing SEC investigation and a derivative lawsuit filed against Enron that alleges its board breached its fiduciary duties by allowing Fastow to create and run the partnerships.
Enron officials also addressed concerns that investors had about the potential need to issue additional Enron stock.
Under certain circumstances, for example, if both Enron's stock and credit rating fall to certain levels, the company would need to issue additional shares to the partnerships, diluting the holdings of current shareholders.
Enron officials declined to say how much dilution would occur under a "worst-case scenario."
However, the officials said they doubted there would be a need to issue the additional stock because the company plans to work with the credit-rating agencies to prevent such an event.
Moody's put Enron on watch for a downgrade of its long-term debt last week after the company announced a $1 billion third-quarter write-off that produced a $618 million loss.
According to Lay, Enron's debt rating would need to fall several notches to below investment grade in order to trigger the need to issue more stock.
"We are committed to maintaining our ratings," Lay said. "Moody's said they would work with us," he added.
Furthermore, Fastow said, Enron expects to have "sufficient liquidity" to meet all its capital requirements.

Enron's efforts to unwind the LJM partnerships contributed to a reduction of $1.2 billion in shareholder equity. However, Enron's Lay said the lower number of shares outstanding wouldn't affect the company's earnings outlook.
Enron has said it expects to earn $1.80 a share in 2001 and $2.15 a share in 2002. The numbers are in line with the consensus estimates reported by Thomson Financial/First Call.
"Despite the economy going softer, we think we can meet that," Lay said.
-By Christina Cheddar, Dow Jones Newswires; 201-938-5166; christina.cheddar@dowjones.com

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

Enron says shareholders' 'best interests' were sought in all LJM dealings

10/23/2001
AFX News
(c) 2001 by AFP-Extel News Ltd

NEW YORK (AFX) - Enron Corp said it sought the "best interests" of its shareholders in all its dealings with LJM Cayman LP and LJM2 Co-Investment LP, two partnerships which were set-up and run until recently by Enron chief financial officer Andrew Fastow.
"The board (of Enron) was fully aware and kept a real Chinese wall between Enron and LJM. Enron's shareholders best interests were sought in all LJM dealings," said Enron chief executive officer Kenneth Lay, in a conference call with analysts.
The company scheduled the call after Enron's stock slid 21 pct yesterday, when it revealed the Securities and Exchange Commission asked the company to provide information on certain related-party transactions.
Overnight, two class action lawsuits were launched by shareholders against Enron and its officers, alleging that operating results were also "materially overstated" as a result of the company failing to timely write-down the value.
In its third-quarter results last week, Enron announced a charge of 1.01 bln usd, of 1.11 usd per share, and an incremental 1.2 bln usd reduction in stockholders' equity, related to the unwinding of investments with the LJM partnerships.
According to the Wall Street Journal, Fastow resigned from the partnerships in July, due to growing suspicion over potential conflicts of interests.
During the call, Lay said that he, and Enron's board of directors, have "the highest faith and confidence in (Fastow)."
Lay also said the company remained confident that its current liquidity position allows it to meet all its obligations, and is confident of the outlook for its corporate rating.
Analysts have raised the possibility that, should Enron's credit rating and stock price continue to fall, the company may be obligated to issue millions of new shares to meet obligations with other entities it deals with.
ng/cml For more information and to contact AFX: www.afxnews.com and www.afxpress.com

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

US class action suit filed against Enron for misleading statements

10/23/2001
AFX News
(c) 2001 by AFP-Extel News Ltd

NEW YORK (AFX) - Milberg Weiss Bershad Hynes & Lerach LLP law firm said it filed a class action lawsuit yesterday against Enron Corp alleging that it issued misleading statements between Jan 18, 2000 and Oct 17, 2001, thereby inflating the company's share price artificially.
The suit was filed on behalf of Enron shareholders between the above period and is pending in the US District Court in Houston against Enron Corp, Enron CEO Kenneth Lay, former Enron CEO Jeffrey Skilling, who resigned recently, and Enron chief financial officer Andrew Fastow.
The suit claims that Enron issued statements which failed to disclose that the company was experiencing a declining demand for bandwidth and that its efforts to create a trading market for bandwidth failed because many market participants were not creditworthy.
The company's operating results were also "materially overstated as result of the company failing to timely write-down the value of its investments with certain limited partnerships" managed by the company's CFO. The suit additionally alleges that Enron was failing to write-down impaired assets on a timely basis in accordance with GAAP.
On Oct 16, Enron announced unexpectedly that it was taking third quarter non-recurring charges of 1.01 bln after-tax, or 1.11 usd per share, which it later revealed was due largely to the unwinding of investments with certain limited partnerships controlled by Enron's chief financial officer. Enron also announced it was cutting shareholder equity by 1.2 bln usd.
Enron's share price consequently fell sharply. During the class period, Enron insiders disposed of 73 mln usd of personally-held Enron common stock.
Holders of Enron stock between the class period in question may request appointment as a lead plaintiff no later than Dec 21, Milberg Weiss said.
Yesterday, Enron announced that the Securities and Exchange Commission has requested that it provide information regarding certain related party transactions.
jkm/shw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

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

Financial Post: News
Word of SEC probe puts Enron into deep dive: Problems mount
David Howard Sinkman
Reuters

10/23/2001
National Post
National
FP2
(c) National Post 2001. All Rights Reserved.

NEW YORK - Shares of Enron Corp. slumped more than 20% yesterday after it said U.S. regulators are looking into company transactions, another blow to a company whose chief executive resigned in August.
A spokesman for North America's biggest buyer and seller of natural gas and electricity declined to discuss an inquiry by the U.S. Securities Exchange Commission, but said it was cooperating.
The SEC also declined to outline details of its inquiry.
Investor confidence in the company has been rocked by reports from The Wall Street Journal about its relationship with two limited partnerships that were run until recently by Enron's chief financial officer, Andrew Fastow.
The company also reported last week its first quarterly loss in more than four years, and took US$1.01-billion in charges and writedowns on ill-fated investments.
Problems at Enron surfaced two months ago when CEO Jeff Skilling resigned after six months at the helm.
Enron shares declined US$5.49, or 21%, to US$20.56 in afternoon trade on the New York Stock Exchange yesterday, shaving off almost US$4.2-billion of its market capitalization.
The stock, the biggest decliner by percentage loss on the NYSE, fell as much as 22.8% yesterday, when it opened at its lowest level since September 1998.
Enron declined to comment on whether the SEC's inquiry into "certain related-party transactions" involved the partnerships.
"Related-party transactions" is the heading used by Enron in its 1999 and 2000 annual reports to discuss dealings with its limited partnerships, LJM Cayman LP and the larger LJM2 Co-Investment LP, which engaged in complex hedging transactions involving company assets worth hundreds of millions of dollars.
Mr. Fastow severed his ties with the partnerships in June. LJM was set up in June 1999 for energy-related investments, and LJM2 in December 1999 for energy- and communication-related investments.
The Journal reported US$35-million of its third-quarter loss of US$638-million were connected with the limited partnerships
Curt Launer, an analyst at Credit Suisse First Boston, said investors should question Enron's use of real value accounting when the value of certain assets, "most notably in telecommunications," have declined precipitously.
"Investors have had several opportunities to question Enron's credibility and at each of those turns the share price has declined," Launer said.
Some analysts, though, cautioned against assuming fire when there might only be smoke.
"This is an inquiry, not an investigation, and I cannot imagine Enron's attorneys or accountants would allow it do to something illegal," said Merrill Lynch analyst Donato Eassey.
"It's easy for the market to kick a company when its down, but these challenges do not last for a solid company, and we think Enron is one."
The price of shares in the company is down 75% this year.

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

City - SEC inquiry sparks Enron share fall.
By Simon English.

10/23/2001
The Daily Telegraph
P31
(c) Telegraph Group Limited, London, 2001

in New York
ENRON, the American power giant, saw its shares slump by a fifth yesterday after it revealed that the top financial watchdog is delving into firms managed by chief financial officer Andrew Fastow.
The Securities and Exchange Commission is requesting details of deals between the company and limited partnerships with which Mr Fastow has, or had, links.
Enron chairman Kenneth Lay said in a statement: "We welcome this request. We will co-operate fully and look forward to the opportunity to put any concern about these transactions to rest."
Questions were raised last week on Wall Street after the company announced a write-down of more than $1 billion due to failed investments in telecoms and other businesses.
The disclosure alarmed investors and sent the already battered shares down 23pc. Yesterday they fell another $5.30 ( #3.80) to $20.75 in early trading.
According to the annual report the "related party transactions", as Enron describes them, took place in 1999 and 2000, resulting in losses of $16m and $36m respectively.
Mr Lay said that auditors approved the deals, but would not give further details of what they were.
They are understood to have been hedging transactions against Enron shares and other assets made by partnerships called LJM Cayman LP and LJM2 Co-Investment JP.
"We believe everything that needed to be considered and done in connection with these transactions was considered and done," added Mr Lay.
The relationship between the investment losses and the SEC probe is not clear, though the inquiry seems to focus on the partnerships responsible for the hedging transactions.
Enron owns Teesside Power Station and Wessex Water in Britain and is the largest trader of natural gas in the US. Investors are concerned that the probe and the continued uncertainty about the extent of the problem will harm the company's credit rating.
An Enron spokesman said Mr Fastow continues to work and is not under any suspicion.
The SEC inquiry is "informal", says the company. The watchdog contacted Enron last Wednesday, the day of the results announcement. The SEC declined to comment.
Enron made a loss of $638m in the third quarter, its first in over four years.

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

Business; Financial Desk
Shares of Enron Plummet 21% Energy: SEC requests information from company on series of unusual financial deals tied to executive.
NANCY RIVERA BROOKS
TIMES STAFF WRITER

10/23/2001
Los Angeles Times
Home Edition
C-1
Copyright 2001 / The Times Mirror Company

Shares of Enron Corp. set a 52-week low Monday on word that the Securities and Exchange Commission had asked for information about a complex series of financial transactions between the Houston-based energy giant and an investment partnership tied to a company executive.
Enron, the world's largest energy trader, said it had voluntarily provided information on "certain related-party transactions" that had been previously disclosed to the SEC.
"We welcome this request," said Kenneth L. Lay, Enron chairman and chief executive.
"We will cooperate fully with the SEC and look forward to the opportunity to put any concern about these transactions to rest," he said.
The SEC request is the latest in a parade of bad news for Enron, which has seen investments sour in telecommunications, retail electricity sales and water.
Investors have battered the company's stock, which once sold for nearly $85 a share in the last year, and many have criticized Enron's stingy meting out of financial information. But several Wall Street analysts remain upbeat on the stock, noting that the bulk of its businesses continue to thrive despite the growing economic downturn.
In August, Enron Chief Executive Jeffrey K. Skilling, one of the main architects of the company's strategy of shedding physical assets in search of trading profit, stunned Wall Street by resigning.
Skilling cited personal, family-related reasons, but later he acknowledged that the precipitous plunge in the company's stock price contributed to his departure.
On Monday, Enron shares plunged $5.40, or nearly 21%, to close at $20.65 on the New York Stock Exchange.
Enron's stock has lost nearly 40% of its value in the last week since it reported a surprise third-quarter loss of $618 million after $1.01 billion in charges reflecting the costs of recent failed investments.
But the charge also included $35 million related to what Enron described only as the "early termination during the third quarter of certain structured finance arrangements with a previously disclosed entity."
In a conference call with securities analysts about the earnings, the company mentioned that it had repurchased 55 million shares as part of the dissolution of its participation in the transactions.
But investors were stunned when stories last week in the Wall Street Journal detailed that the transactions were with a limited partnership organized by Andrew S. Fastow, Enron's chief financial officer, and that Enron had whittled $1.2 billion off its shareholder equity as it repurchased the shares and canceled a $1.2-billion note it had received from the partnership. Shareholder equity now stands at $9.5 billion.
The limited partnership, called LJM2, and Fastow reaped millions of dollars of profit through complex hedging transactions that involved Enron assets and stock, the Journal reported.
Lay said the transactions were reviewed by auditors and lawyers inside and outside the company and that the company board was fully informed.
A shareholder lawsuit charging that Enron's directors violated their fiduciary duty already has been filed in Texas state court.
Many companies set up limited partnerships for tax purposes, but it is unusual to allow company executives to run them, analyst say.
Investors also are upset by the unusually zealous way that Enron has guarded financial information, making it difficult to analyze the company's complex web of businesses.
And many are not confident that all the bad news has been released.
Analyst M. Carol Coale, who follows Enron and other energy companies for Prudential Securities in Houston, downgraded Enron to a "hold" from a "buy" rating Monday out of such frustration.
Coale said she has been getting misinformation or no information out of Enron.
But Bob Christensen, energy analyst with First Albany Corp., said that despite Enron's recent difficulties, the bulk of the business remains strong.
"I continue to tell investors that 70% of this company's business is growing at a 26% rate, and that was in the third quarter when this country had a very sharp economic slowdown going on," he said.
Investors are panicking because of a "bad news story that doesn't reflect reality," said Jon Kyle Cartwright, senior energy analyst with the Raymond James & Associates brokerage firm in St. Petersburg, Fla.
"They are the world's largest energy trader, and they are very good at that," Cartwright said.
"The reality is that everything is fine here," although more charges, perhaps $500 million worth, are expected in the next few quarters, related to businesses that Enron is selling.

GRAPHIC: Losing Its Spark / Los Angeles Times;
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.


Hi Benjamin,

Winston Cheng asked me to forward to you the attached schedule of development
projects for the west.  Note that these projects are not firm - for example,
most have not got firm site commitments etc.  No doubt, many of the projects
are expected to fall through or be terminated for one reason or another.

Cheers

Christian


---------------------- Forwarded by Mary Hain/HOU/ECT on 01/26/2001 10:41 AM
---------------------------

Mary Hain
01/26/2001 10:26 AM
To: craiggannett@dwt.com
cc: James D Steffes/NA/Enron@Enron, csandhe@enron.com, Sean
Crandall/PDX/ECT@ECT, Tim Belden/HOU/ECT@ECT
Subject: COB Exports denied

From an operational perspective, during a Stage 3 Emergencies, the ISO has
three options available to keep the lights on.   It can (1) buy more power
(under its DOE granted Section 202(c) authority), (2) cut scheduled power
transactions, or (3) derate transmission capacity used to export power from
its system.  The Cal ISO has recently been derating to zero transmission
capacity to the Northwest (option 3).  Because transmission users can't get
capacity to sell their power outside California, the effect is that the ISO
gets cheaper power over customers in the NW.

I was thinking of a political approach to solving this problem.  I was
wondering if you could work with your contacts to mobilize NW Senators (?) to
write a letter to the California ISO and the Governor; you might even get
Steve Wright to sign on given that this  situation must make it more
difficult for him to balance his budget.

The central theme of the letter would point out what a hue and cry there
would be if BPA engaged in such actions and that California is simply  trying
to get cheaper power than the rest of the region.  It could also point out
that the Cal ISO already has the mechanism of the Secretary of Energy's
Section 202(c) orders to get the power it needs for an emergency and that
this order is fairer because it allows market participants to have a just and
reasonable rate determined (albeit after the fact) for the power.  I wouldn't
bring up the ISO's authority to cut scheduled power transactions.  I don't
think we want to encourage that.

What do you think?  Call me.


Sue Landwehr in government affairs spoke to a member of the Thompson
administration who indicated that the governor may be interested in talking
to you about Amtrak.  Specifically, ECT has been working with Amtrak for
quite some time on an electricity


Thank you all for your warm congratulatory words.  Arianna is now 1 month
old and is doing great (I promise you will not get an email like this every
month).  Kati is also
doing great.    Here are some photos for your viewing pleasure.

Jon

(See attached file: aep1.jpg)(See attached file: aep2.jpg)(See attached
file: aep3.jpg)(See attached file: aep4.jpg)(See attached file: aep5.jpg)
 - aep1.jpg
 - aep2.jpg
 - aep3.jpg
 - aep4.jpg
 - aep5.jpg


_________________________________________________________________

WEEKEND SYSTEMS AVAILABILITY

FOR

1/4/2002 5:00:00 PM through 1/7/2002 12:00:00 AM
_________________________________________________________________
SCHEDULED SYSTEM OUTAGES:

ARDMORE DATA CENTER - FACILITY OPERATIONS:

Impact: Corp
Time: Sat 1/5/2002 2:00:00 PM CT thru Sat 1/5/2002 3:00:00 PM CT
Sat 1/5/2002 12:00:00 PM PT thru Sat 1/5/2002 1:00:00 PM PT
Sat 1/5/2002 8:00:00 PM London thru Sat 1/5/2002 9:00:00 PM London
Outage: SysAdmiral Fault Tolerance Split for Netco/Estate
Environments Impacted: The outage the sysAdmiral Application will be brief and should not directly affect any applications.
Purpose: We are Splitting the sysAdmiral Fault Tolerance Databases and Master Services on NAHOU-BPMS01P and NAHOU-BPMSFT01P. NAHOU-BPMS01P Database/Master will be used for Estate Scheduling needs and NAHOU-BPMSFT01P will be used for Netco Scheduling Needs. After the environments are split their will be no more replication between the two servers or Fault Tolerance.
Backout: ReEnable Fault Tolernace.
Contact(s): Brennan, Ryan 713-853-4545
Lindsay, Brian 713-853-6225

AZURIX: No Scheduled Outages.

EB34 DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages.

EDI:  No Scheduled Outages

EES: No Scheduled Outages

ENRON CENTER SOUTH DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages

ENRON NORTH AMERICAN LANS:  No Scheduled Outages

FIELD SERVICES:  No Scheduled Outages.

INTERNET: No Scheduled Outages.

MESSAGING: No Scheduled Outages.

MARKET DATA: No Scheduled Outages.

NT: No Scheduled Outages.

OS/2:  No Scheduled Outages.

OTHER SYSTEMS: No Scheduled Outages.

SITARA:  No Scheduled Outages.

SUN/OSS SYSTEM: No Scheduled Outages.

TELEPHONY: No Scheduled Outages

TERMINAL SERVER:  No Scheduled Outages.

UNIFY:  No Scheduled Outages.

----------------------------------------------------------------------------------------------------------------------------
								FOR ASSISTANCE

(713) 853-1411   Enron Resolution Center

Specific Help:
Information Risk Management			(713) 853-5536
SAP/ISC                                                                               (713) 345-4727
Unify On-Call 					(713) 284-3757  [Pager]
Sitara On-Call					(713) 288-0101  [Pager]
RUS/GOPS/GeoTools/APRS			(713) 639-9726  [Pager]
OSS/UA4/TARP				(713) 285-3165  [Pager]
CPR						(713) 284-4175  [Pager]
EDI Support 					(713) 327-3893  [Pager]
EES Help Desk					(713)853-9797 OR (888)853-9797
TDS -Trader Decision Support On-Call                    (713) 327-6032 [Pager]


Where?  Just curious.

To: Chris Germany/HOU/ECT@ECT
cc:
Subject: Re: Wed

Too bad 'cause Meredith and I are going out...and maybe Blaine


Jan, do you want to be on this distribution list?  Please let Craig know if you do.  Thanks, Kim.

 -----Original Message-----
From: 	Buehler, Craig
Sent:	Wednesday, August 29, 2001 11:14 AM
To:	Buehler, Craig; Paladino, Ranelle; Mercaldo, Vernon; Pritchard, John; Brostad, Karen; Carter, Zuela; Steele, Patricia; Aschwege, Doug; Torres, India; Cherry, Paul; Bianchi, Rita; Dasilva, Esther; Cormier, Martha; Lokay, Michelle; Lohman, TK; Lindberg, Lorraine
Cc:	Williams, Jo; Watson, Kimberly; Dietz, Rick
Subject:	September 1st Contract Status (as of August 29th @ 11:15 am )

PROCESSING

TW/27420	WTG Gas Mkt	9/1-11/30/01	2,050/d	Panhandle Pool to TW Winkler	In Capacity

TENDERED

TW/25374	Oneok		9/1-9/30/01	13,000/d	Panhandle Pool to NNG Beaver	EXECUTED

TW/27293	Sempra		9/1-9/30/01	45,000/d	W.Tex/Pan Pools to Socal/Topock	Tendered 8/29

TW/27342	Sempra		1/02-12/02	30,000/d	Ignacio to Blanco			Tendered 8/28

TW/27496	Reliant	9/1-9/30/01	30,000/d	San Juan Pool to PNM Bloomfld	EXECUTED

TW/27651	Burlington	9/1-9/30/01	15,000/d	La Maquina to I/B Link		Tendered 8/28

40888/107926	MGI Supply	8/25/01	20,000/d	TI Agreement				Tendered 8/24

41862/108169	Burlington	9/1-9/30/01	80,000/d	Permian Pool to Permian Pool	EXECUTED

41877/107600	W. Texas Gas	9/01-8/02	Varies		MidCon & Permian to Field Pts	EXECUTED

41897/105279	Oneok		9/1-9/30/01	81,000/d	MidCon Pool to MidCon Pool		EXECUTED

41912/108074	Tristar	9/1-9/30/01	800/d		Permian Pool to Permian Pool	EXECUTED

41913/108084	Mirant		9/1-9/30/01	6,169/d	Various RP's to Demarc		Tendered 8/29

TERMINATING - NNG    (Unless extended prior to 8/31/01)*

107903		NGTS			80,000/d	Permian Pool to Permian Pool

108043		Virginia Pwr		4,600/d	Demarc to Zone E/F

108125		PanCanadian		10,000/d	Ventura to Nigas E. Dubq

108180		Virginia Pwr		525/d		Demarc to Monroe Master Meter

108196		CMS Mktg		2,000/d	Bushton to Demarc

108246		Duke			18,000/d	Duke Thurmon to Bushton

* EOL Agreements and Agreements with day-to-day terms are not included on this list...


Daily-Blessing
http://www.daily-blessings.com/bless145.htm

Lord's prayer
http://www.daily-blessings.com/humor53.htm

check out thanksgiving pages...send them on to friends and family to let them
know you are thankful for them!

http://www.debsfunpages.com/thanksgiving.htm

win a digital camera, $4500.00 or MORE
http://www.daily-blessings.com/4500.htm

FORGET PC PHONE. GET REAL LONG DISTANCE AT NO COST bigredwire is the first
and only company to offer REAL long distance at no cost
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Mr Inkman-for all your ink needs
http://www.daily-blessings.com/inkman.htm

<<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>>
* To remove yourself from this mailing list, point your browser to:
http://inbound.postmastergeneral.com/remove?dailyblessings:10
* Enter your email address (judy.hernandez@enron.com) in the field
provided and click "Unsubscribe". The mailing list ID is "dailyblessings:10".

OR...

* Reply to this message with the word "remove" in the subject line.

This message was sent to address judy.hernandez@enron.com
X-PMG-Recipient: judy.hernandez@enron.com
<<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>>


Attached find two drafts, one a redline/strikeout and the other a clean first
draft of the RTO West tariff glossary.  In addition to making the changes we
discussed to the Transmission Operating Agreement, I also took the liberty of
adding a number of definitions that I cribbed from the FERC pro forma
(changing "Transmisison Provider" to "RTO West" where applicable).  I
recognize that some of these definitions may not be applicable to the new
types of transmisison service but I thought if we made these definitions
available to the technical groups they could tell us if they needed them and
we would be assured that terms were used consistently with the FERC pro forma
and throughout the RTO West tariff.


DEAR OU TEAM:

Here is the itinerary for interviews:

The Montford Inn
322 West Tonhawa
405/321-2200
Rooms reserved for:
Sunday night: Sally Beck, James Scribner, Angie Zeman, Stephen Plauche, Lexi
Elliott
Monday night: James Scribner, Mark McConnell, Lexi Elliott, Steve Venturatos

* Please call and cancel your room if you will not need an overnight stay

Sunday, October 8
Pre-Interview Reception
7pm, Business Casual
Legend's Restaurant
1313 West Lindsey
405/329-8888
Attendees:  James Scribner, Sally Beck, Tana Cashion, Lexi, analyst
candidates, former summer interns, and targeted interns for future interviews

Monday, October 9 and Tuesday, October 10
** Interviewers and greeters should be on campus by 8:00am to prepare for
interviews.  I will be in the breakfast area at 7:45 for anyone who needs a
ride to campus.
Round 1 and Round 2 Interviews:
OU Career Services Office
900 Asp Avenue, Suite 323
(Union Building)
8:30 am - 4:45 pm

Day 1 Interviewers:  Sally Beck, James Scribner, Stephen Plauche, Tana Cashion
Day 1 Greeter:  Angie Zeman

Day 2 Interviewers:  James Scribner, Mark McConnell, Steve Venturatos
 ** Still looking for 1 more interviewer ** (please let me know if you know
of anyone who would be available and qualified).

Thanks for all your help!

I can be reached on my cell phone:  281/793-1097

lexi


** Proprietary **

--------- Inline attachment follows ---------

From:  <Cbrewer@westerngas.com>
To: clm@swgd.com, Jennifer Buffington <JBUFFING.MKTPO.D1DOMAIN@westerngas.com>, Linda Haynes <LHAYNES.Remotepo.D1DOMAIN@westerngas.com>, Marla Hoffman <MHOFFMAN.ENGPO.D1DOMAIN@westerngas.com>, Terri  Delellis <TDELELLI.MKTPO.D1DOMAIN@westerngas.com>
Date: Wednesday, October 17, 2001 3:26:43 GMT
Subject:

** Proprietary **

--------- Inline attachment follows ---------

From:  <TOKEEFE@westerngas.com>
To: Bob Case <BCaseComm@aol.com>, Hobartno3@aol.com, Laura_Scrutchin@bmc.com, Ronald L. Sedlock <rsedlock@email.msn.com>, DDC@GallagherEnterprises.com, Jamie Siracusano <jamie.siracusano@geaccess.com>, Amanda Pytlarz <pytlarza001@hawaii.rr.com>, Mike Bent <bentm@HESKA.com>, Gloria Kennedy <gmkennedy55@hotmail.com>, Nancy Kolb <nkolb2@hotmail.com>, Alyssa Biolchini <alyssa@indra.com>, Mike Baugh <mbaugh.darcova@juno.com>, Patrick O'Keefe <pjokeefe@juno.com>, Marti Cook <marti@mail.cyberport.com>, Connie Brezik <connie@profassets.com>, Cynthia Brewer <Cbrewer.MKTPO.D1DOMAIN@westerngas.com>, Diane Knopp <DKNOPP.MKTPO.D1DOMAIN@westerngas.com>, Don Perry <Dperry.ADMPO.D1DOMAIN@westerngas.com>, Jeff Server <JSERVER.ADMPO.D1DOMAIN@westerngas.com>, Karen Keenan <KKEENAN.ADMPO.D1DOMAIN@westerngas.com>, Kathleen McGuire <KMCGUIRE.ADMPO.D1DOMAIN@westerngas.com>, Kristin Salek <KSALEK.ADMPO.D1DOMAIN@westerngas.com>, Liz Stumm <LSTUMM.ADMPO.D1DOMAIN@westerngas.com>, Marian Kleinbach <MKLEINBA.ENGPO.D1DOMAIN@westerngas.com>, Rhyannon Absher <RABSHER.MKTPO.D1DOMAIN@westerngas.com>, Tom Jirkovsky <Tomj.ADMPO.D1DOMAIN@westerngas.com>, Wenda Lewis <WLEWIS.ISPO.D1DOMAIN@westerngas.com>, Jagger, Kathleen <Kathleen.Jagger@Williams.com>, Mapes, Don <Don.Mapes@XCELENERGY.COM>
Date: Wednesday, October 17, 2001 3:18:59 GMT
Subject:

** Proprietary **

 The following was written by Andy Rooney, a man who has the gift of saying so
     much with so few words.

     I've learned....
     That the best classroom in the world is at the feet of an elderly
     person.

     I've learned....
     That when you're in love, it shows.

     I've learned....
     That just one person saying to me, "You've made my day!" makes my
     day.

     I've learned....
     That having a child fall asleep in your arms is one of the most
     peaceful feelings in the world.

     I've learned....
     That being kind is more important than being right.

     I've learned....
     That you should never say no to a gift from a child.

     I've learned....
     That I can always pray for someone when I don't have the strength
     to
     help him in some other way.

     I've learned....
     That no matter how serious your life requires you to be, everyone
     needs a friend to act goofy with.

     I've learned....
     That sometimes all a person needs is a hand to hold and a heart to
     understand.

     I've learned....
     That simple walks with my father around the block on summer nights
     when I was a child did wonders for me as an adult.

     I've learned....
     That life is like a roll of toilet paper. The closer it gets to the
     end, the faster it goes.

     I've learned....
     That we should be glad God doesn't give us everything we ask for.

     I've learned....
     That money doesn't buy class.

     I've learned....
     That it's those small daily happenings that make life so spectacular.

     I've learned...
     That under everyone's hard shell is someone who wants to be
     appreciated and loved.

     I've learned....
     That the Lord didn't do it all in one day. What makes me think I
     can?

     I've learned....
     That to ignore the facts does not change the facts.

     I've learned....
     That when you plan to get even with someone, you are only letting
     that person continue to hurt you.

     I've learned....
     That love, not time, heals all wounds.

     I've learned....
     That the easiest way for me to grow as a person is to surround
     myself with people smarter than I am.

     I've learned....
     That everyone you meet deserves to be greeted with a smile.

     I've learned....
     That there's nothing sweeter than sleeping with your babies and
     feeling their breath on your cheeks.

     I've learned....
     That no one is perfect until you fall in love with them.

     I've learned....
     That life is tough, but I'm tougher.

     I've learned....
     That opportunities are never lost; someone will take the ones you
     miss.

     I've learned....
     That when you harbor bitterness, happiness will dock elsewhere.

     I've learned....
     That I wish I could have told my Dad that I love him one more time
     before he passed away.

     I've learned....
     That one should keep his words both soft and tender, because
     tomorrow he may have to eat them.

     I've learned....
     That a smile is an inexpensive way to improve your looks.

     I've learned....
     That I can't choose how I feel, but I can choose what I do about it.

     I've learned....
     That when your newly born grandchild holds your little finger in his
     little fist, that you're hooked for life.

     I've learned....
     That everyone wants to live on top of the mountain, but all the
     happiness and growth occurs while you're climbing it.

     I've learned ...
     That it is best to give advice in only two circumstances; when it is
     requested and when it is a life threatening situation.

     I've learned....
     That the less time I have to work with, the more things I get done.

     To all of you.... Make sure you read all the way down to the last
     sentence.

     It's National Friendship Week. Show your friends how much you care.
     Send this to everyone you consider a FRIEND, even if it means
     sending it back to the person who sent it to you. If it comes back
     to you, then you'll know you have a circle of friends. HAPPY
     FRIENDSHIP WEEK TO YOU!!!!!! YOU ARE MY FRIEND AND I AM
     HONORED!
     Now send this to every friend you have!! And to your family. This
     was sent to me.


We are attaching the following:
1. Revised draft of the Letter Agreement (marked against the drafts of 4/11
and 4/12)
2. ENA Promissory Note (marked against the draft of 4/12)
3. First Amended and Restated LLC Agreement (marked against the draft of
4/12)
4. Escrow Agreement (marked against the draft of 4/12)
5. NorSub Promissory Note (marked against the draft of 4/12)

We have no comments with respect to the Guaranty (other than the request
that the "IN WITNESS WHEREOF" appears with the signature block).

We look forward to discussing the attachments with you on Monday.
 <<Letter Agreement.DOC>>  <<blackline against April 11 draft.DOC>>
<<blackline against April 12 draft.DOC>>  <<blackline E Note.DOC>>
<<E-Note.DOC>>  <<blackline LLC Agreement.DOC>>  <<LLC Agreement.DOC>>
<<Escrow Agreement.DOC>>  <<blackline - Escrow Agreement.DOC>>  <<Promissory
Note.DOC>>  <<blackline - Promissory Note.DOC>>

"paulhastings.com" made the following annotations on 04/13/01 23:10:37
------------------------------------------------------------------------------
NEW E-MAIL ADDRESSES AT PAUL, HASTINGS, JANOFSKY & WALKER LLP

We have changed our e-mail address.  Our new domain name is
paulhastings.com.  In most cases, our address is composed of conventional
first name and last name plus @paulhastings.com.  Here are two examples:
janesmith@paulhastings.com and danjones@paulhastings.com.  If you have any
questions, please contact us at noc@paulhastings.com.

==============================================================================
"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 all
computers."

==============================================================================

 - Letter Agreement.DOC
 - blackline against April 11 draft.DOC
 - blackline against April 12 draft.DOC
 - blackline E Note.DOC
 - E-Note.DOC
 - blackline LLC Agreement.DOC
 - LLC Agreement.DOC
 - Escrow Agreement.DOC
 - blackline - Escrow Agreement.DOC
 - Promissory Note.DOC
 - blackline - Promissory Note.DOC


Slow browser may need to wait 15 seconds for your email to appear, then scroll to view. mailto:leave-enerfaxdaily-1012763X@relay.netatlantic.com to unsubscribe enerfaxdaily as: lblair@enron.com forward to web@enerfax.com
If your email does not support this web version, please subscribe to the free text version by writing subscribe@enerfax.com Please visit our website to view today's gas and power prices and news by clicking http://www.enerfax.com


Ivonne,

Thanks for the information.  Will I receive the $3,500 automatically on my
paycheck, or do I need to submit an expense report to be reimbursed for any
expenses I incur?  If I do need to submit an expense report, who should I
turn it in to?

Thanks,
Robin

	Enron North America Corp.

	From:  Ivonne Brown @ ENRON                           02/23/2001 08:56 AM

To: Robin Rodrigue/HOU/ECT@ECT
cc:
Subject: Relocation to Chicago

Robin,

You will be receiving a cost-of-living adjustment of 20% when you relocate to
Chicago plus an additional $1,000 per month.  In addition, we will provide
relocation assistance for your household goods and car transportation.

Allowance
$3,500 will cover expenses which are outside the movement of your household
goods.  (This amount is before taxes.)

Household goods move
Option 1 - Full service of household goods
Option 2 - Self move / $1,500  (This amount is before taxes.)

Please let me know if you need additional information.

Thanks,
Ivonne Brown


This is done. Let me know if it shows up in your report.

Kate

Lester Rawson
02/21/2001 07:02 AM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Deal Update

Kate,

Please approve and autoschedule deal #483074.

Les


As you both know, we are working on the launch of Phase III of EnronOnline. Since we will be making changes to the website we are currently reviewing all content online. This is an opportune time to make any necessary changes. I have attached the Legal and Privacy section for your review. If you have any questions, please give me a call.

Thanks,
Lindsay

Lindsay Renaud
EnronOnline
(713) 345-3703


Michelle,

The name of the DB Administrator for Enpower is Charlene Fricker,
5-3487. Alex will contact her regarding the access to the curve.

I think it's a problem many layers below Gary Hickerson's level
of responsibility and I hope we can handle it without using his valuable
time.

Vince


With respect to the "amends":

Calpine Power:  was already open for financial-no change to that approval

Utilicorp.:  I originally had Enron sales only for power, but Leslie is now
telling me to open them for all power.

Constellation:  I originally had them shut down for financial, so I am
opening them up.  I originally had them shut down for power and they should
stay shut down.


John - thanks for the kind words about Colorforms.? It was a lot of fun
putting together and the feedback so far has been very complimentary -
they've already run out of the color brochures so people must be interested
in learning more.? Thanks for coming to the opening and supporting the show.?
It means a lot to have friends believe in my projects.?

I haven't seen the Core show yet but am looking forward to it.? What did you
think?? I heard that Jessica's piece is real nice.

I look forward to seeing you two soon - maybe we could talk about DJ
equipment then.? BTW, do you still have my Anokha CD.? I was looking for it
the other day and couldn't find it.? Not a big deal if you don't.? I'll just
pick up another copy.

Take care,

Baloy, Grils Baloy

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


thanks.

From: Keith Fraley on 03/14/2001 10:41 AM
Sent by: Keith Fraley
To: Matt Smith/NA/Enron@ENRON
cc:

Subject: Update

I have added the pipes that you asked for....


Thank you for your order.

========== GENERAL INFORMATION ==========
Company Name: The John Peterman Company
Date/Time: 14-05-2001

========== ORDER INFORMATION ==========
Order: OnlineOrder_00001529
Item Name: The Right Stuff Wallet
Item #: BGW
Unit Price: 67
Quantity: 1
Shipping & Handling: 8.50
Grand Total: 75.50
Payment Method: Visa

========== SHIPPING INFORMATION ==========
Full Name: Jeffrey Dasovich
Company Name:
Address: 101 California St.
Suite 1950
City: San Francisco
State: California
Zip Code: 94111
Country: USA
EMail: jeff.dasovich@enron.com


CALENDAR ENTRY:	APPOINTMENT

Description:
	Dr Appointment - 3:00 - Leave at 2:00 for test

Date:		5/7/2001
Time:		2:00 PM - 4:00 PM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


To all concerned:

Here is the proposed EOL/Kiodex Co-Marketing agreement updated to reflect
Louise Kitchen's, Mark Taylor's, and Jay Webb's comments from today.  I have
made my best effort to represent the changes we discussed, as well as to add
some additional detail and clarification.  I know we still need even greater
detail in this document.  Specifically, I plan add diagrams of process flow
as soon as possible.

My goal with this document all along was to use it as a basis for discussion
with Kiodex so we could come to final agreement regarding the key commercial
and technical issues surrounding the on-going EOL/Kiodex relationship.  This
document was never intended to be a legal document or all-inclusive.
Specifically, I believe many of the legal disclaimers and rights of Enron to
review and audit Kiodex's website and product will be significantly fleshed
out in definitive agreements which continue to be drafted.  Please let me
know if you have any questions or comments.  Thank you.

Drew
x56075
(713) 569-6131 (cell)


---------------------- Forwarded by Phillip M Love/HOU/ECT on 06/28/2000
05:38 PM ---------------------------

Bryan Hull
06/28/2000 05:35 PM
To: O'Neal D Winfree/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, David
Baumbach/HOU/ECT@ECT, Michael Walters/HOU/ECT@ECT, Eric Bass/HOU/ECT@ECT,
Matthew Lenhart/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT, Jody
Crook/Corp/Enron@ENRON, Timothy Blanchard/HOU/EES@EES, Chad Landry/HOU/ECT@ECT
cc:
Subject: FW: Grandma Wassup

---------------------- Forwarded by Bryan Hull/HOU/ECT on 06/28/2000 05:36 PM
---------------------------

From:  Cecilia Olvera
    06/28/2000 05:34 PM

To: Bryan Hull/HOU/ECT@ECT
cc:
Subject: FW: Grandma Wassup

---------------------- Forwarded by Cecilia Olvera/HOU/ECT on 06/28/2000
05:34 PM ---------------------------

Alex Saldana
06/28/2000 02:33 PM
To: "Sonya Rodriguez" <sonyardz@hotmail.com> @ ENRON, Nere <nere@myrex.com>,
"marissa merino" <mr0401@hotmail.com>, "Marivel Mercado"
<MMercado@MarathonOil.com> @ ENRON, "Martha Real" <Marthar@mfslcpa.com>,
"Maria Segura" <Marias@mfslcpa.com>, juan lopez <lopey69@yahoo.com> @ ENRON,
Adriana Saldana <asaldana@UH.EDU>, "alicia" <alara@enhancedlaser.com>, "Leal,
Dinorah" <LealD@national-citymortgage.com>, "Jerez, Ernest"
<Ernest.Jerez@usa.xerox.com>, Vanilapuf@aol.com, SMedina@chartertitle.com,
csal314042@aol.com, Stacie.Saldivar@chron.com, "Sandra Martinez"
<MARTINEZ_S@hccs.cc.tx.us>, Cecilia.Olvera@enron.com, sm45818@aol.com, Andrea
R Guillen/HOU/ECT, DKovasovic@aol.com, MBalderas@chartertitle.com,
Heather.Choate@enron.com
cc:
Subject: FW: Grandma Wassup

---------------------- Forwarded by Alex Saldana/HOU/ECT on 06/28/2000 02:36
PM ---------------------------

>
>
>  <<grandma-wassup.mpg>>

 - grandma-wassup.mpg


Yvette:

Who has reviewed the glossary in general from a legal perspective?  Since
Enron is sponsoring the glossary, I want to make sure someone has gotten
comfortable with the sponsorship and the fact that there are no disclaimers
in the glossary relating to the information contained therein.

Leslie

	Yvette Parker@ENRON
	12/06/2000 03:54 PM

		 To: Leslie Hansen/HOU/ECT@ECT
		 cc:
		 Subject: article

Leslie,

Enron has agreed to sponsor the Energy Power Risk Management Glossary this
year.  Below is an article that we would like to include at the beginning of
the publication.  Please review and make any necessary changes.

I will bring you a copy of the glossary so you have an idea of where the
article is being placed.

Thanks again for your help,
Yvette
3-9595


for some reason that contact was inactivated -if that's definitely the
contact, i'll have gcp re-activate it.  that's strange, i wonder why  it was
inactivated.  just let me know.

   Kate Symes @ ECT                01/29/2001 12:16 PM

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

Subject: Re: conoco deals #506549.01, 506550.01, 506551.01

The contact name is Jack Wells, and his phone number is (281) 293-6030. Would
you like me to enter this info into the deals?

Kate

Kimberly Hundl@ENRON
01/29/2001 08:23 AM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: conoco deals #506549.01, 506550.01, 506551.01

hi kate,
these sean crandall deals need contacts.  can you please get a good contact
name (and phone #) and i will put in a gcp request to have it added to the
drop down list in deal entry.
i'm too lazy to press the shift key lately, sorry -no caps.
thanks for your help!
kim