Enron Troubles Only the Tip of the Iceberg?
TheStreet.com, 10/26/2001

Under the Radar: Enron's Flickering Bulb
TheStreet.com, 10/26/2001

DJ Enron Unit,New England Market Downplay Report Of Default
Dow Jones, 10/26/2001

Enron Lawsuit Over Microsoft Broadband Agreement May Block MSN
Bloomberg, 10/26/01

Enron Executives Sent Requests for Details of Affiliate Profits
Bloomberg, 10/26/01

Enron Still Target in California Amid Other Problems (Update1)
Bloomberg, 10/26/01

Enron Bonds Fall as Company Taps $3 Bln Credit Line (Update5)
Bloomberg, 10/26/01

Keller Rohrback L.L.P. Investigates Potential Claims on Behalf of Enron Corp. -- ENE -- Employees and Former Employees
Business Wire, 10/26/01

Enron Troubles Only the Tip of the Iceberg?
By Peter Eavis <mailto:peavis@thestreet.com>
Senior Columnist
TheStreet.com
10/26/2001 05:23 PM EDT
URL: <http://www.thestreet.com/markets/detox/10003083.html>

Dealings with a related party have tarnished Enron's (ENE:NYSE - news - commentary) reputation and crushed its stock, but it looks like that case is far from unique.
The battered energy trader has done business with at least 15 other related entities, according to documents supplied by lawyers for people suing Enron. Moreover, Enron's new CFO, who has been portrayed by bulls as opposing the related-party dealings of his predecessor, serves on 12 of these entities. And Enron board members are listed as having directorships and other roles at a Houston-based related entity called ES Power 3.
The extent of Enron's dealings with these companies, or the value of its holdings in them, couldn't be immediately determined. But the existence of these partnerships could feed investors' fears that Enron has billions of dollars of liabilities that don't show up on its balance sheet. If that's so, the company's financial strength and growth prospects could be much less than has generally been assumed on Wall Street, where the company was long treated with kid gloves.
Enron didn't immediately respond to questions seeking details about ES Power or about the role of the chief financial officer, Jeff McMahon, in the various entities. Enron's board members couldn't immediately be reached for comment.
Ten Long Days
Enron's previous CFO, Andrew Fastow, was replaced by McMahon Wednesday after investors criticized Fastow's role in a partnership called LJM, which had done complex hedging transactions with Enron. As details of this deal and two others emerged, Enron stock cratered.
The turmoil that resulted in Fastow's departure began two weeks ago, when Enron reported third-quarter earnings that met estimates. However, the company failed to disclose in its earnings press release a $1.2 billion charge to equity related to unwinding the LJM transactions. Since then, investors and analysts have been calling with increasing vehemence for the company to divulge full details of its business dealings with other related entities. Enron stock sank 6% Friday, meaning it has lost 56% of its value in just two weeks.
Enron's End Run?
New financial chief's involvement in Enron business partners
Enron-Related Entity	Creation DateMcMahon Involved?

ECT Strategic Value Corp.4/18/1985	Yes
JILP-LP Inc.	9/27/1995	Yes
ECT Investments Inc.	3/1/1996	Yes
Kenobe Inc.	11/8/1996	Yes
Enserco LLC	1/7/1997	Yes
Obi-1 Holdings LLC	1/7/1997	Yes
Oilfield Business Investments1/7/1997	Yes
HGK Enterprises LP Inc.	7/29/1997	Yes
ECT Eocene Enterprises III Inc.2/20/1998Yes
Jedi Capital II LLC	9/4/1998	Yes
E.C.T. Coal Company No. 12/31/1998	Yes
ES Power 3 LLC	1/7/1999	Yes
Enserco Inc.	3/25/1999	No
LJM Management LLC	7/2/1999	No
Blue Heron I LLC	9/17/1999	No
Whitewing Management LLC2/28/2000	No
Jedi Capital II LLC	4/16/2001	No
Source: Detox
However, Enron has yet to break out a full list of related entities. The company has said nothing publicly about McMahon's participation in related entities, nor has it mentioned that its board members were directors or senior officers in ES Power 3. (Nor has it explained the extensive use of Star Wars-related names by the related-party companies.) It's not immediately clear what ES Power 3 is or does. So far, subpoenas issued by lawyers suing Enron have determined the names of senior officers of ES Power 3 and its formation date, January 1999.
Among ES Power 3's senior executives are Enron CEO Ken Lay, listed as a director, and McMahon and Fastow, listed as executive vice presidents. A raft of external directors are named as ES Power 3 directors, including Comdisco CEO Norman Blake and Ronnie Chan, chairman of the Hong Kong-based Hang Lung Group. A Comdisco spokeswoman says Blake isn't commenting on matters concerning Enron and a call to the Hang Lung group wasn't immediately returned.
Demands, Demands
Rating agencies Moody's, Fitch and S&P recently put Enron's credit rating on review for a possible downgrade after an LJM deal that led to the $1.2 billion hit to equity. Enron still has a rating three notches above investment grade. But its bonds trade with a yield generally seen on subinvestment grade, or junk, bonds, suggesting the market believes downgrades are likely.
If Enron's rating drops below investment grade, it must find cash or issue stock to pay off at least $3.4 billion in off-balance sheet obligations. In addition, many of its swap agreements contain provisions that demand immediate cash settlement if its rating goes below investment grade.
Friday, the company drew down $3 billion from credit lines to pay off commercial paper obligations. Raising cash in the CP market could be tough when investors are jittery about Enron's condition.
This week, a number of energy market players reduced exposure to Enron. However, in a Friday press release, CEO Lay said that Enron was the "market-maker of choice in wholesale gas and power markets." He added: "It is evident that our customers view Enron as the major liquidity source of the global energy markets."
McMahon reportedly objected to Fastow's role in LJM, allegedly believing it posed Fastow with a conflict of interests. But he will need to convince investors that the 12 entities he's connected to don't do the same. Enron has said that its board fully approved of the LJM deals that Fastow was involved in. Now, board members will have to comment on their own roles in a related entity.

Under The Radar: Enron's Flickering Bulb
By Christopher Edmonds <mailto:cedmonds@thestreet.com>
Special to TheStreet.com
10/26/2001 05:08 PM EDT
URL: <http://www.thestreet.com/comment/chrisedmonds/10003075.html>

While the bulb at Enron (ENE:NYSE - news - commentary) may not have burnt out, it's clearly flickering. To date, investors aren't sure whether Chairman and CEO Ken Lay is up to the task of re-energizing the company he once built to greatness.
What's happened at the Houston energy giant-turned-dwarf could've been imagined with any number of ne'er-do-well companies during the well-chronicled bubble. But this is Enron. As one longtime Enron bull and shareholder said, "I never had to worry about Enron's ability to survive until this week. I still find it hard to believe."
Peter Eavis has done an exceptional job of chronicling Enron's adventures for some time. If you'd listened to him earlier this year, you'd have profited from his knowledge. His reporting on Enron's partnership shenanigans to the departure of Chief Financial Officer Andrew Fastow has been outstanding.
The rumors -- from a pending bankruptcy to a Justice Department investigation -- are, for now, just that. And, Enron did not single-handedly cause the California power crisis, nor is Royal Dutch/Shell (RD:NYSE - news - commentary) about to make a bid to buy the company. Sources do tell me that head-count reductions are likely through employee buyout offers and the company is set to refocus on its core energy business. And, while former CEO Jeff Skilling shares culpability for the current mess, his departure appears only indirectly related to Enron's current woes.
Now, Enron faces the daunting challenge of rebuilding both its business and, more importantly, its reputation.
The Company's Challenge
But what does Enron do now? It's very simple. Come clean, clean up the mess and refocus on its core business: wholesale energy markets, risk management and retail energy services. They support each other and create a platform that can be plenty profitable without a lot of gimmicks.
"Our gut feel is that Enron can pull it off, and long-term investors should hold firm, as eventually the stock gets valued on earnings, with upside potential to $25 per share over the next 12-18 months," says Jeff Dietert, power analyst at Simmons & Co. and a member of the TSC Energy Roundtable. "We believe new money with high risk tolerance should wait until Enron announces its intentions for communicating a clear path to recovery."
Dietert outlines four challenges for Enron. One, management must regain the Street's confidence and persuade investors that it can resolve balance-sheet strength and generate the expected earnings and cash flow. Two, Enron must maintain its investment-grade credit rating. Three, Enron must successfully execute its divestiture plans. Four, Enron must control the timing of the recognition of the write-down in the value of any assets where market value is less than book.
Straightforward? Yes. Easy to accomplish? No.
Although Enron says additional write-downs are unlikely -- except a $200 million charge early next year as the result of an accounting change -- analysts aren't so sure. They're focused on the company's Global Assets portfolio, sporting $6 billion in book value but generating an EBIT (earnings before interest and taxes) loss of $18 million over the past 12 months.
The divestitures include $390 million in exploration and production assets in India, $250 million in a Puerto Rico power plant and $250 million in a Brazilian power plant in the fourth quarter as well as the pending sale of Portland General, which is set to close in 2002. There will likely be others. However, Enron has to execute here, and given the current state of its affairs, the seller will feel the pressure.
The credit-rating issue is a fine line. The current ratings, BBB+ from Standard & Poor's and Baa1 from Moody's, are three levels above non-investment grade. However, both rating agencies now have Enron on their radar screens for possible downgrades. Dietert estimates that Enron's debt-to-market cap will be about 48% by year-end, and the company has interest coverage (EBITDA/ interest expense) of about 3.5 times. By comparison, the average S&P BBB-rated company has a debt-to-cap of 47.4% and interest coverage of about 6.1 times. The average BB company has debt-to-cap of 61.3% and interest expense of 3.8 times.
Frankly, everything falls on Enron's management team and its ability to reassure investors. "If Enron's management does not step up to calm investor fears, these fears could become a self-fulfilling prophecy," Dietert says. "In the potentially vicious cycle, investor fears could drive stocks down; the lower stock prices force the rating agencies to consider downgrades; potentially lower credit ratings force counter-parties to reduce exposure to Enron, limiting Enron's ability to generate earnings and cash flow."
It's time for Enron to grow up. Despite a lot of uncertainties and risk, I think it will. Investors with risk capital should do their homework on the stock and think about strategy. It's a tough call that requires strict, individual discipline.
There's an irony to this whole story, especially in Enron's lack of candor in reporting its financial results. In a much-lauded advertising campaign, Enron, looking to challenge conventional wisdom, asks the simple question, "Why? Ask why."
Investors are now asking. It's time for Ken Lay to answer.
First Things First
Many readers have asked about my relative quietness this week. Thank you for your concern. My father has fallen ill after fighting the effects of a brain tumor for more than a decade.
The choice was easy. I'm with him and my family.
Enjoy your weekend with family and friends.

DJ Enron Unit,New England Market Downplay Report Of Default
2001-10-26 17:14 (New York)

   By Kristen McNamara
   Of DOW JONES NEWSWIRES

  NEW YORK (Dow Jones)--Enron Corp.'s (ENE) retail sales unit defaulted on its
credit requirement in New England's wholesale power market this month, but the
event was neither unique nor newsworthy, the energy company and the
organization that developed the market's rules said Friday.

  The operator of the region's wholesale power market informed Enron Energy
Services last week that, for the third time in 12 months, it had traded a
greater volume of electricity than allowed by the bond it had posted and was at
risk for expulsion from New England's market.

  But it was administrative mixups, rather than financial problems, that
triggered the warning, which a few other companies have also received in the
past, the market's rulemaker said.

  "I can state with considerable confidence that there have been other
participants" that have defaulted on their credit agreements, "and it's never
been in the news," said David Doot, secretary and general counsel for the New
England Power Pool, which developed the policies governing the region's
electricity market. "My instinct is that this is blown way the hell out of
proportion."

  News of the Enron unit's default appeared in a trade publication and a major
metropolitan newspaper this week, as Enron's dealings with partnerships headed
by its former chief financial officer contributed to a plunge in the company's
stock and bond prices.

  Enron Energy Services never received word that it had defaulted on its
bonding requirement twice before, because both times it corrected the problem
within a day, spokeswoman Peggy Mahoney said.

  The letter sent by ISO New England, which operates the region's power market,
to notify the Enron unit of its third violation was addressed to the wrong
person, delaying the company's response, Mahoney said.

  "Clearly, it was an administrative error that we immediately took care of to
ensure that we would never exceed the volume limit," Mahoney said.

  The company resolved the problem by Oct. 19, Mahoney said. ISO New England
spokeswoman Ellen Foley confirmed Friday that the company had cured its
default.

  It's rare for a company to default three times, but it has happened on
occasion, Foley and Doot said.

  "I won't say it's commonplace, but I won't say it's unusual for a participant
to find itself out of compliance," Doot said. "Those things have in fact
happened from time to time."

  -By Kristen McNamara, Dow Jones Newswires; 201-938-2061;

Enron Lawsuit Over Microsoft Broadband Agreement May Block MSN
2001-10-26 16:47 (New York)

Enron Lawsuit Over Microsoft Broadband Agreement May Block MSN

     Houston, Oct. 26 (Bloomberg) -- Enron Corp.'s lawsuit
alleging Microsoft breached a contract for broadband services
could temporarily block the largest software company's high-speed
Internet service in some U.S. regions.

     Microsoft said the dispute temporarily blocks the company
from providing the high-speed service in areas where Enron
provides broadband access, leaving MSN fully operational only in
the 14 states where Qwest Communications International Inc.
operates, said Bob Visse, director of marketing for MSN.

     Enron's lawsuit was filed yesterday. Microsoft had planned to
offer fast Internet access in 45 cities beginning yesterday to
give the largest software company access to potential customers in
29 million homes. Microsoft, the No. 2 U.S. Internet provider, is
making a push to win customers from AOL Time Warner Inc.

     ``We are trying to resolve the issues with Enron as quickly
as possible and at the same time we are evaluating other
providers,'' Visse said.

     Officials at Houston-based Enron, the largest energy trader,
did not immediately return calls for comment.

                         The Agreement

     Enron in June signed an agreement with Microsoft to provide
bandwidth for MSN Internet service. Under the agreement, Enron
isn't required to deliver operational broadband services if
Microsoft hasn't first provided a billing and ordering system, Dow
Jones newswire reported.

     Enron claims in its lawsuit that Microsoft failed to deliver
the ordering and billing system required in the initial phase of
the deal, Dow reported.

     Enron's lawsuit comes after Microsoft said in an Oct. 23
letter that Enron will have breached the contract if it hasn't
provided an operational bandwidth system by Oct. 25, allowing
Microsoft to recover damages.

     Shares of Redmond, Washington-based Microsoft fell 36 cents
to $62.20, while Enron shares fell 95 cents to $15.40.

--Joyzelle Davis in Los Angeles (213) 617-0582, or

Enron Executives Sent Requests for Details of Affiliate Profits
2001-10-26 15:36 (New York)

Enron Executives Sent Requests for Details of Affiliate Profits

     Houston, Oct. 26 (Bloomberg) -- Lawyers for a shareholder
suing Enron Corp. are asking executives of the largest energy
trader to disclose any income they made from their involvement
with affiliated companies that bought and sold Enron assets.

     Lawyers have made the requests to President Greg Whalley,
Vice Chairman Mark Frevert and Chief Financial Officer Jeff
McMahon and 83 other employees arrived at Enron's Houston offices
this week, said Paul Paradis, a partner in the New York law firm
Abbey Gardy. Requests also were sent to 17 Enron partnerships such
as Whitewing Management and Marlin Water.

     Paradis represents Fred Greenberg, an Enron shareholder who
is suing the company's board for allowing former Chief Financial
Officer Andrew Fastow to run partnerships that cost the company at
least $35 million in cash and $1.2 billion in lost shareholder
equity.

     The requests are aimed at determining if Enron executives
benefited financially from roles as officers and directors of
partnerships that bought and sold company assets. Enron formed at
least 18 such affiliated companies, listing executives and
employees as officers and directors of the partnerships, according
to Texas secretary of state records.

     Under Texas law, failure to respond to the document requests
will result in subpoenas being issued. Subpoenas could go out next
week if responses don't arrive by then, Paradis said. Enron
spokeswoman Karen Denne didn't respond to requests for comment
about the document requests.

     The executives earned no income from the partnerships, Enron
spokesman Mark Palmer has said. ``There are no financial interests
in the structures themselves for any Enron employee,'' Palmer
said. He said it's common for a company to name its executives to
the boards of affiliates.

                       Affiliates Have Debts

     Texas records show Chief Executive Officer Kenneth Lay,
Frevert, Whalley, McMahon and dozens of other people who list
their address as Enron's corporate headquarters serving as
officers and directors of limited liability companies and foreign
business corporations.

     The document requests ask Enron executives for information on
any form of compensation or benefit received from any of the
affiliates, including stock grants and options. They also ask the
executives to disclose any equity or partnership interests in the
affiliates.

     Enron formed many of the affiliates to buy company assets
such as power plants and natural-gas pipelines. That allowed Enron
to move debt associated with those projects off its books.

     The affiliates bought the assets with borrowed money. They
plan to repay the debt by eventually selling the assets. Enron
might be liable for any shortfall between the sales proceeds and
the debt. That could amount to at least $3.3 billion if the assets
don't generate any money, a remote possibility, the company has
said.

                            Few Answers

     Investors and analysts pressed Enron Chief Executive Officer
Kenneth Lay for details on the finances of the partnerships in a
conference call Tuesday.

     Today, Enron spokeswoman Karen Denne didn't respond to
questions about one of them, ES Power 3 LLC.

     Texas records list 78 Enron executives and employees as
officers, directors and managers of ES Power 3 LLC. The entire
Enron board is also listed.

     Shares of Enron $1.15 to $15.20 in late trading.

--Russell Hubbard in the Princeton newsroom at 609-750-4651, or at

Enron Still Target in California Amid Other Problems (Update1)
2001-10-26 16:15 (New York)

Enron Still Target in California Amid Other Problems (Update1)

     (Updates with closing share price in last paragraph.)

     Sacramento, California, Oct. 26 (Bloomberg) -- Enron Corp.,
facing an inquiry by federal securities regulators into
partnerships run by the former chief financial officer, remains a
target of investigations and lawsuits in California.

     California lawmakers and regulators have accused power
providers of manipulating the state's energy market to raise
prices. Enron, the biggest energy trader, and other power sellers
have denied the charges repeatedly.

     Next month, a California Senate committee investigating the
power market plans to hold a hearing to determine if Enron and
other generators are complying with subpoenas for trading
documents. Enron has been filing documents in Sacramento,
California.

     ``They are still putting documents in their depository, and I
don't think they've completed that process,'' said Alexandra
Montgomery, a consultant to the committee. It ``remains to be
seen'' whether Enron is complying with its subpoena, she said.

     The suits and inquiries came after wholesale power prices in
California soared, leaving the state's two largest utilities
insolvent. Under California's plan to open its electricity market
to competition, the utilities of PG&E Corp. and Edison
International weren't allowed to pass rising costs to customers.

     ``I know that we're doing our best to comply with what the
committee is asking for,'' Enron spokesman Mark Palmer. ``We are
putting documents in the depository, and we're looking forward to
a speedy resolution.''

     Shares of Houston-based Enron have fallen by more than half
since Oct. 16. The company ousted Andrew Fastow as the chief
financial officer Wednesday amid a U.S. Securities and Exchange
Commission inquiry into a partnership he ran that cost Enron $35
million.

                            Grand Jury

     Enron also is one of the companies being investigated for
civil and criminal violations by California Attorney General Bill
Lockyer, who convened a grand jury in June.

     Lockyer has been criticized by Enron officials for telling
the Wall Street Journal in May that he would like to put Enron
Chairman Kenneth Lay in ``an 8 x 10 cell that he could share with
a tattooed dude who says `Hi my name is Spike, honey.' '' Lockyer
later apologized for the remark.

     The attorney general's investigation is proceeding, Lockyer
spokeswoman Sandra Michioku said. Michioku said she didn't know
when civil or criminal charges against Enron or other power
providers might be filed.

     ``Our investigation is still being pursued,'' she said. ``We
had to go to court to get Enron to turn over documents, so that
slowed things down a bit.''

     Enron's Palmer said he didn't know the status of the attorney
general's investigation.

     ``I think the attorney general demonstrated his willingness
to take a fair and impartial look a long time ago when he made his
vulgar and unfounded remarks about our chairman,'' Palmer said.

                           More Lawsuits

     Enron, along with other major power providers such as Duke
Energy Corp. and Dynegy Inc., face at least five lawsuits alleging
they manipulated California energy prices in violation of
antitrust laws.

     The cases, which include separate complaints filed by the
City of San Francisco, California Lieutenant Governor Cruz
Bustamante and various consumers, currently are in state courts
awaiting a coordination proceeding, said Michael Aguirre, a lawyer
representing Bustamante. The lawsuits should be assigned to a
judge by the end of next month, he said.

     If the complaints succeed, the companies might be ordered to
repay profits from any illegal activities and pay fines, including
triple damages.

     Enron's stock fell 95 cents, or 5.8 percent, to $15.40,
declining for the eighth day in a row. The shares have fallen 80
percent in the past 12 months.

--Daniel Taub in Los Angeles, (323) 801-1261 or

Enron Bonds Fall as Company Taps $3 Bln Credit Line (Update5)
2001-10-26 16:18 (New York)

Enron Bonds Fall as Company Taps $3 Bln Credit Line (Update5)

     (Adds investor comment in fourth paragraph.)

     Houston, Oct. 26 (Bloomberg) -- Enron Corp. bonds and shares
fell after the largest energy trader tapped a $3 billion credit
line because it has been shut out of the leading market for low-
interest, short-term loans.

     The company's stock has fallen 54 percent in the past 14 days
after investors questioned its transactions with affiliates run by
Enron's former chief financial officer. The shares fell 95 cents,
or 5.8 percent, to $15.40 today.

     Chief Executive Officer Kenneth Lay has failed to reassure
investors that the company's credit rating won't be cut, investors
said. Enron can no longer borrow in commercial paper markets,
where short-term loans carry lower rates than banks offer.

     ``Do they have the financial flexibility they once had? No,''
said John Cassady, who helps manage $3 billion in bonds at Fifth
Third Bancorp. ``People are questioning the credibility of
management.''

      The company will use its credit line to pay off $2.2 billion
in commercial paper it has outstanding, Enron spokesman Mark
Palmer said.

                            Bonds Drop

     Enron's 6 3/4 percent bonds, which mature in 2009, declined 1
1/2 points to a bid of 84 cents on the dollar and an offer of 86
cents. At that price, the bonds, which carry a rating of ``BBB+,''
yield 9.53 percent.

     Investors have grown concerned that the company's credit
rating will be cut after $1.01 billion in third-quarter losses
from failed investments. Enron needs good credit to raise cash
daily to keep trading partners from demanding collateral and to
settle transactions.

     Enron's decision to tap its credit line was ``a smart
financial move,'' said Stephen Moore, a vice president at Moody's
Investors Service who follows the company. ``It took away the
hassle and time-consuming nature of rolling commercial paper and
insured access to capital.''

     Though Enron's bonds have investment-grade ratings, their
yield at current prices is higher than those of industrial bonds
that carry junk ratings. According to Bloomberg data, companies
with ``BB'' ratings pay on average 9.16 percent to borrow for
seven years.

     A lower credit rating may also force Enron to buy back
holdings in other partnerships with its stock, diluting the value
of Enron investors' stock.

     Partnerships called Whitewing, Marlin and Yosemite own Enron
assets they bought with borrowed money. Enron sold the assets to
the partnerships to keep related debt off its books. The
partnerships plan to repay the borrowed money by selling the
assets.

                         Other Liabilities

     If Enron loses investment-grade rating, the borrowed money
comes due earlier, leaving less time for the partnerships to find
the best price for the power plants and other assets. Enron would
have to make up any shortfall between what the assets would sell
for and the amount of the debt.

     One way would be issuing common shares to exchange for Enron
preferred convertible shares held by the partnerships. That would
thin out the holdings of every other investor.

     Of the two main bond-rating companies, Moody's and Fitch have
Enron on watch for possible downgrade, and Standard & Poor's
lowered Enron's long-term credit outlook to negative. Egan-Jones
Rating Co. today lowered its rating on Enron's debt to ``BB+,''
one notch below investment grade, from ``BBB-.''

     Enron's liabilities associated with the partnerships amount
to at least $3.3 billion, the company has said.

     Enron ousted Chief Financial Officer Andrew Fastow on
Wednesday amid a Securities and Exchange Commission inquiry into a
partnership he ran that cost the company $35 million in direct
losses. Enron also bought back 62 million shares from the
partnership, reducing shareholder equity by $1.2 billion.

     ``It looks like the guy who was supposed to do everything for
the benefit of shareholders was running partnerships for the
benefit of himself,'' Fifth Third's Cassady said.

     Jeff McMahon, head of Enron's industrial markets group, was
named CFO in a bid to restore investor confidence, Lay said in a
statement.

--Russell Hubbard in the Princeton newsroom at 609-750-4651, or at

Keller Rohrback L.L.P. Investigates Potential Claims on Behalf of Enron Corp. -- ENE -- Employees and Former Employees

10/26/2001
Business Wire
(Copyright (c) 2001, Business Wire)

SEATTLE--(BUSINESS WIRE)--Oct. 26, 2001--Seattle's Keller Rohrback L.L.P. is currently investigating potential ERISA claims on behalf of participants and beneficiaries of Enron's retirement and 401(k) plans.
The investigation period covers January 2000 through October 2001. The investigation focuses on concerns that, under the law interpreting ERISA, Enron and its plan administrators may have breached their fiduciary duties of loyalty and prudence by failing to disclose and inform the Plan participants and beneficiaries with respect to the use of employer stock as a Plan investment. Rather than providing complete and accurate information to the Plans' participants, it may be alleged that Enron and the plan administrators may have withheld and concealed material information, thereby encouraging participants and beneficiaries to continue to make and to maintain substantial investments in company stock and the Plans. This investigation is being conducted in light of recent events.
On Oct. 16, 2001, Enron surprised the market when it announced that the Company was taking "non-recurring charges totaling $1.01 billion after-tax, or ($1.11) loss per diluted share," in the third quarter of 2001. Enron later revealed that a material portion of the charge related to the unwinding of investments with certain limited partnerships, controlled by Enron's CFO, and that the Company would be eliminating more than $1 billion in shareholder equity as a result of its unwinding of the investments. As this news began to be assimilated by the market, the price of Enron common stock dropped significantly. In addition, several recently filed securities suits allege that Enron executives engaged in extensive insider trading, gaining millions of dollars in personal proceeds. Enron retirees have lost a substantial portion of their retirement earnings due to the drop in value of their retirement assets.
If you are a member of an Enron retirement plan, wish to discuss this announcement, or have information relevant to the investigation, you may contact paralegal Liza Catabay, or any member of our team (Britt Tinglum, Liza Catabay, or Lynn Sarko) toll free at 800/776-6044, or via e-mail at investor@kellerrohrback.com.
Seattle's Keller Rohrback L.L.P. has successfully represented shareholders and consumers in class action cases for over a decade. Its trial lawyers have obtained judgments and settlements on behalf of clients in excess of seven billion dollars.

CONTACT: Keller Rohrback L.L.P. Liza Catabay, 800/776-6044 investor@kellerrohrback.com www.SeattleClassAction.com
15:16 EDT OCTOBER 26, 2001
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.


Hello John,

Your home looks great with a sold sign on it. Yes it is sold. The only thing
I need now is your new address, phone # and any new e-mail addresses you
might have.

Good luck John I owe you a round of golf at a course of your choosing, say
hi to the gang and I will be in touch.

Have a great day,

Rod Forsythe


PLEASE NOTE SPECIAL HOURS

Notice No. 01-349
October 22, 2001

TO:       All NYMEX Members/Member Firms
          All NYMEX Clearing Members
          All NYMEX Floor Traders
          All NYMEX Operations Managers

FROM:     George Henderson, Vice President

RE:       Options Expiration Operational Procedures for the Trading
Floor and Clearing Members - Revised Hours
________________________________________________________________

The expiration date for the November 2001 options contract for Unleaded
Gasoline (GOX1), Heating Oil (OHX1) and Natural Gas (ONX1) is Friday,
October 26, 2001.

GENERAL OPERATIONAL PROCEDURES

All Clearing Members and Qualified Floor Traders that carried an options
position as of the close of business day prior to the expiration day, or
engaged in trading activity on Expiration Day in the expiring options
contract will be required to have a knowledgeable, duly authorized
representative present at their normal work station promptly at 4:40 p.m.
until released by the Exchange staff as specified below.  All adjustments
and/or corrections, must be accompanied by relevant supporting
documentation
prior to being incorporated into expiration processing, in essence making
the expiration processing an extension of the afternoon trade resolution
procedures.  All input to the NYMEX Clearing Department will conclude no
later than 30 minutes after floor representatives are released.

Exchange Clearing (299-2110), Floor Trade Processing (299-2068 and
299-2169)
personnel, as well as a representative of the Floor Committee will be
available to assist with the processing of notices of Exercise and
Abandonment, position transfers, trade corrections and other questions or
problems you may have.

CLEARING DEPARTMENT OPERATIONAL PROCEDURES

The Option Expiration process is a screen based process for which all
information is provided on the screens on C21 terminals. No Option
Expiration Reports will be provided. The following screens will assist you
through the Option Expiration process:

MEMBER TRADE INQUIRY
Contains real-time top day trade information, trade information for the
previous 4 business days and trade=s adjusted for the previous 4 business
days by adjustment date.

SINGLE POSITION MAINTENANCE
Contains a real-time snapshot for each option series from the start of day
position to the projected end of day position.

REVIEW ACCEPT REJECT TRANSFERS
Contains all trade and position transfers TO your firm and the status of
each transfer.

REVIEW SUBMITTED TRANSFERS
Contains all trade and position transfer FROM your firm and the status of
each transfer.

EXERCISE NOTICE SUBMISSION
Contains your available long position and an input field to enter the
number
of long positions you wish to exercise.

DO NOT EXERCISE SUBMISSION
Contains your available long position and an input field to enter the
number
of long positions you wish to abandon.

POSITION CHANGE SUBMISSION
PCS may be submitted either by manual input or by electronic transmission.
Any PCS input on a Clearing 21 terminal will be the input processed by the
system.  This input may be made at any time prior to 5:55 p.m.  Any PCS
input via transmission for that contract series will be disregarded.

ALL POSITIONS ARE DEEMED FINAL
Upon completion of all PCS input, all positions will be deemed final.

EXERCISE/ASSIGNMENT INFORMATION
Will be available to you on the Single Position Maintenance window by
contract series or the Assignment List window which contains all your
Assignments on one window. You will be notified of its availability by C21
E-Mail and by Fast Facts. This should occur within 1 hour of the last PCS
input.

All Clearing Members are required to have an authorized representative(s)
at
their C21 workstations in preparation for any communication during the
expiration process.

FAST FACTS
Clearing Members should call the Fast Facts information service 301-4871,
access code 700 for event messages advising Members of the event status.

E-MAIL
Clearing Members should read their C21 E-Mail messages immediately to be
aware of event status.

The standard event Fast Facts and/or E-Mail messages and the sequence in
which they will be announced are:

STANDARD EVENT           APPROXIMATE TIME            USUAL   FAST
FACTS(F)
  MESSAGES                       OF MESSAGE        EVENT TIME
E-MAIL    (E)
                           AVAILABILITY
BOTH      (B)

Announce Out-of-the                 4:45PM          4:45PM        F
Money Exercise and In-the-Money
Do Not Exercise Submissions

Announce Final Input to C21         5:40PM          5:55PM        E
Cutoff Time

All positions are deemed final      6:30PM          5:55PM        F

Announce Exercise/Assignment        7:15PM          7:15PM        B
Information Available on the Single
Position Maintenance Windows

All Report Distribution is         11:30PM         11:30PM        F
completed

The times appearing in the Usual Event Time column are based on normal
operational conditions and could vary.

If you have any questions concerning these procedures, please contact
Anthony Di Benedetto at 299-2152 or John Ramos at 299-2142 prior to the
expiration date.

 <<EXPFORMSPEC.XLS>>

(See attached file: EXPFORMSPEC.XLS)

 - EXPFORMSPEC.XLS


you're an angel (and, you're on the side of the angels).

Best,
Jeff


Do you have a fax no?  I could fax them to you...


Today's Enron-wide Associates PRC meeting has been cancelled.  It was
scheduled to start at 1:30 today, following the Analysts PRC.  Apparently,
the Analysts PRC is running long.  Since both meetings were scheduled for the
same location and with Joe Sutton as the chair, the Associates PRC has been
cancelled.  I do not yet have a rescheduled date.  I will let you know when I
do.  I am also sending an e:mail message to the Associates that I am
representing so that they will informed of the cancellation.

Thanks for taking the time to meet or talk with me about the performance of
your respective associate in preparation for the PRC.


You're booked in Mt. Bachelor from 9:30 to 11 a.m. on Tuesday. I'll swing by
Starbucks in the morning and pick up a variety of bagels and cream cheese for
six people. We'll get a pot of coffee in there and you should be set. Let me
know if there's anything else I can do.

Kate


Sally,

I wanted to thank you for the opportunity to organize your Global Operations
Forum.  I enjoyed working with you and Patti and meeting the other
individuals that keep this organization innovated.  I hope you will keep me
in mind should you need assistance with a similar function in the future.
Best of luck with your continued success.

Sincerely,

Julissa Marron


Dear Team,

I added some stuff, including the equations, to Dennis's PS#5 to make it
look like the Professor's (page 11 of the Project Management handout). I
printed out the equations using the control-tilda, too.

I also spent some time with Problem 1 from the team handout. I made at
least one important change - only using one bearing size that is then
calculated with shaft sizes for both current and proposed. I had a lot
of trouble with the precision on the graphs (only 2 digits after the
decimal), so I made pass/fail criteria (i.e. IF .005<bearing size-shaft
size<.009, returns a 1=pass, else 0=fail). I made these into report
cells too. I also made another report cell that compares the success of
the two methods - this is getting at question 3. It basically determines
if there is ever a time that the current method gets success when the
proposed method gets failure (I came up with 8.7% on 1000 runs).

Let me know what you think. See you tonight.

Pat

 - REPORT 1.xls
 - PS
 - problem 1.xls


Hi Hoon
I looked at the Marriott and Hilton for one night w/ Brkfst included :$160.00
I've been to the Marriott and I loved it, I am trying to see if we can get any
discount w/ Continental or American.
Call me
I am glad the red stuff is gone... (I can't believe the things you right me...)
Love
me


I always have time for lunch!  I will ask my assistant to call you to set
something up.  Thanks for your note.  --Sally


Hear ye, hear ye,  a conference call is hereby declared and scheduled for
Friday, December 8 at 2:00 p.m. Eastern/ 1:00 p.m. Central/11:00 a.m.Pacific
time among David Mitchell, Elizabeth Sager, Shari Stack and Christian
Yoder.   I will initiate the call. ----cgy


Richard,

Attached is the same spreadsheet I sent earlier.  Click on the EEMC tab for EEMC purchases.


the weekly trading activity is what I wanted

thanks


[IMAGE]
Dear Sir or Madam          FoundMoney brings to you an incredibly exciting and fun website. There are $7,000,000,000.00 (SEVEN BILLION DOLLARS!) worth of unclaimed money accounts in our database alone in the form of bank accounts, wills, insurance settlements, over paid tax bills and estates. Four out of five American families are owed money in some form. Since inception in 1994, Foundmoney.com has helped  thousands of people find millions of dollars in unclaimed money by using our website.  Click here  or on the link below to search your family name and find out in seconds... if you or anyone you know has money waiting to be claimed. The INITIAL SEARCH IS FREE, and you have everything to gain, and nothing to lose... This is the  amazing website that was featured on "The Oprah Winfrey Show". Click here  right now to see if you are one of the   31 Million American People who have money just waiting to be collected.  Sincerely,  Foundmoney
[IMAGE]

   Remove yourself from Intervolved.net by either: Entering your email address below and clicking REMOVE:    OR This message was sent to address: pmims@enron.com    Do Not hit the reply button, your address will not be deleted. We respect all removal requests.    Please send service inquires or email abuse complaints to service@intervolved.net         By continuing to receive emails from Intervolved.net you agree to Intervolved.net's Privacy Policy . This message is not intended for residents in the States of WA, NV, CA & VA.   Copyright? 2001 by Intervolved, Inc.   All rights reserved.  This message was sent by Intervolved.net


(See attached file: hpl0215.xls)

 - hpl0215.xls


From:  Cynthia Sandherr                           01/11/2000 05:16 PM

Rick:  Per your request, please find the one page description of how the
Washington D.C. office prioritizes both human and financial resources while
fitting within the Enron budget process.   I have attached our 1999
activities report which illustrates the process described below.

Congress operates in a two year cycle while the Administration operates in a
four or eight year cycle.  Thus, it is necessary for our prioritization to
focus on the long term.  Within the context of the Congressional and
Administration's Calendars, our office determines and communicates doable
priorities based upon the environment in which we operate.  In addition, we
actively work behind the scenes and commit resources to affect and change
this environment.

 On an annual basis, we communicate federal legislative and global
opportunities which we believe affect our operations via briefings to Steve
Kean, who along with our assistance, submits our proposed goals to the Enron
Management Committee,  Global CEO's , individual operating company heads and
heads of key divisions.  Many dialogues and briefings occur resulting in goal
adjustments and additions.  During this dialogue, we advise on possible new
corporate strategies based upon political realities and communicate necessary
resources required in order to achieve the legislative successes.

Once this vetting process is complete (December-January timeframe), and the
Management Committee prioritizes the federal Corporate goals, we submit our
budget and assure this budget directly correlates to the necessary resources
(both human and financial) detailed and allocated to meet these priorities.
(Note:  the budget process usually occurs in the August-October timeframe).
On the financial side, we keep current as to the rates and the expertise
available on the market, as well as, track potential conflicts of interest.
It's our job to know our environment and to lay out strategy.  On an annual
basis, we adjust our resources which can include dropping some issues,
reassigning personnel, hiring or letting go necessary outside counsel, etc.

We remain mindful that in order to achieve legislative success, it is
necessary to follow long-term planning so as to allow for us to build
credibility, keep important political relationships viable and, ultimately,
place us in the best possible political position to achieve success.

Our budget does its best to recognize that the Congressional process can be
unpredictable and that Congress reacts to fast occurring events and public
reaction.   It is rare when we have not foreseen some form of a potential
issue; thus, we always operate within budget.  An example of a contingency
issue would be India setting off a nuclear device, a possibility we had
accounted for yet could not possibly exactly predict nor could we predict the
fall-out and precise Corporate impact.  However,we were still able to budget
for possible permutations for such an occurrence and make adjustments as
needed in order to meet our goals and stay within our budget.  Based upon the
experience of the people in our office, we have been very successful in
anticipating these type of occurrences.

Our report details our 1999 results and projects Enron priorities for 2000
although neither the President's State of the Union address which outlines
the Executive Branch's legislative agenda for 2000 nor the Republican
Congressional response and 2000 Congressional legislative agenda has as of
yet been delivered nor finalized.


Get Your Acts Together!!!!

C4C Talent Show

Friday, April 27th
8:00 p.m. - 10:30 p.m.
International House

We need your talent (or lack thereof)!!!

Simply hit "reply" to this email
and I will put an "Act Registration Form" in your mailbox

All ??TALENT?? welcome ... students, staff, faculty alike

Additional forms are also available in the MBA Lounge on the C4C Bulletin
Board
Please return to Susan Ram's box by Friday, April 20th


Shirley,

Please, include Grant as well.

Vince
---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 02/24/2000
04:57 PM ---------------------------

Vince J Kaminski
02/24/2000 04:52 PM
To: Remi Collonges/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Vince J Kaminski/HOU/ECT@ECT, Shirley Crenshaw/HOU/ECT@ECT
Subject: Re: curves for South America

Remi,

No problem. My assistant Shirley Crenshaw will call you Friday to set up a
meeting.

Vince

Remi Collonges@ENRON_DEVELOPMENT
02/24/2000 09:10 AM
To: Vince J Kaminski@ECT, Grant Masson@ECT
cc:
Subject: curves for South America

Vince and Grant,

I have been made responsible for all gas and power curves in South America
(plus books development, reporting, .......).  I have somewhat started but,
since I am new on the job, I'd love to receive advice, guidance (and at some
stage help) from you.  Would you be available for a meeting next week,
preferably Thursday or Friday?   I'm planning to be in Houston these days.

Remi Collonges
(55) 11 5503 1200


the Buzz		Friday, November 16, 2001

In the Buzz this week:

EES Keeps the Fire Burning

EES Q4 Deals: EES is pounding the pavement, making calls and (of course) making deals. The Third Party Sales Group continues to dominate the small business market in Texas, New York and Massachusetts, currently signing over 2000 new deals each week. Texas, which is known for doing everything in a big way, accounts for about 60 percent of the new deals signed. With success in the three markets already achieved, the Third Party Sales Group has moved into new territory, the Illinois market. The Third Party Sales Group, which was established less than five months ago, has already signed up more than 24,000 customers.

The Mid Market group is also bringing new customers into the fold. In these first few weeks of Q4, the Mid Market group has added Boston Market and Holiday Inn in New York, Moody Gardens and American National Insurance Company in Galveston, the Jewish Community Center Houston, Gulf Coast Retailers Association, El Fenix Restaurants in Dallas and Maxim.

The commercial, manufacturing/industrial and regional commodity groups are continuing to offer EES' products and services to large business consumers and have successfully brought in several large deals over the past few weeks. New customers include Sonoco, Wendy's, Unilever and Sara Lee with gas contracts and Ball Corp, Oil Tanking and Sysco with power contracts in Texas.

Customer Information and Support: Prior to and following Enron's merger with Dynegy, customers have expressed many questions about EES and where we stand on our contracts. A letter along with a Q&A about EES' position was distributed to customers on November 14 outlining our continued commitment to our contracts and our ongoing efforts to provide excellent customer support. Click here  to read the letter and Q&A sheet.

Inquiries and Customer Satisfaction Support: For the past four months, the EES Business Center has successfully been serving as EES's primary contact and has been instrumental in delivering superb customer care. Please continue to route any general inquiry call that you receive to the center at 800-337-7827. Additionally, if you receive media inquiries, please refer calls to the appropriate contacts outlined below. This information is also available on the Resources Shelf that is accessible from the EES homepage.

General business inquiries:
EES Business Center	800.337.7827		EESBusinessCenter@enron.com

Media/Press inquiries:
Laura Schwartz		713.853.4535		Laura.Schwartz@enron.com
Laurie Shults		713.345.1753		Laurie.Nickel@enron.com

Lead$ Referral Program's Weekly Winner: Congratulations to Robert Foster, this week's winner of the $250 cash prize in the Lead$ Referral Program! Robert, Manager, Transaction Support, joins recent past winners Joe Bucio and Bill Walding, in the winner's circle for the weekly prize drawing. In the first three weeks of the program, a total of $750 has been awarded. Winning is easy! To be entered in the drawing, all you need to do is flip through your Rolodex and submit the names of companies and contacts that EES origination can call on! Submit your leads online at the Lead$ Referral Program. A $250 prize will be awarded each week from now until January 31, 2002. At the end of the program, all persons who submitted leads will be automatically entered in a grand prize drawing for $10,000! You could be the next big winner. Click here  to begin turning your Rolodex into cash!

Deal Structuring Brown Bag: The November 14 Brown Bag presentation with Deb Merril, Director, Deal Management, is now available on Video Central. Deb provided an overview of the "life of a deal" and explained how Deal Structuring, which acts as the "gatekeeper between Origination, Desks and Operations," participates in the successful completion of a deal. Click here to view  the presentation or download slides.

Attention Outlook Users!!: Many Outlook users are unable to access the links in the Buzz and other email notices sent from Lotus Notes. To correct this problem, follow these steps:
1.	Go to the Outlook inbox
2.	Click "Tools" on the top task bar
3.	Click "Options"
4.	Click "Security" tab
5.	Click "Attachment Security" button
6.	Change security from "high" to "none"
The email links should now work properly. If you are having difficulty, call the help desk at extension x39797 and representatives can walk you through the change.

The Dynegy/Enron Merger
Dynegy and Enron Merger: On November 9, Dynegy and Enron announced an agreement for a merger between the two companies which is expected to confirm the value of Enron's core business, rebuild customer, counter party and investor confidence and strengthen Enron's liquidity. Of the potential options considered outside of a merger, few could provide "the earnings potential and immediate synergies" that a combination with Dynegy could provide according to Greg Whalley, Enron president and chief operating officer.

The new organization will focus on core businesses including wholesale energy markets and commercial and industrial energy users. Enron will continue to act as an independent company until the merger, which is expected to close at the end of Q3 2002, is complete. Click here  to view the press release outlining the merger details and the merger Q&A.

Enron Investor Update Conference Call: Enron held an investor conference call early Thursday morning to provide investors with an up to date overview of the company's current situation. During the call, Ken Lay, chairman and chief executive officer of Enron, reviewed occurrences which led to the current loss in investor confidence and decline in liquidity such as bad investments, "perceived" conflicts of interest in related-party transactions, lack of transparency and errors in financial statements. "We fully understand and regret the combination of events that have resulted in loss of investor confidence," said Lay, and we "are fully committed to fixing the problems."

In an effort to restore operational and financial momentum, Enron will be split into Core and Non-Core businesses and Businesses Under Review.
?	The core businesses which were performing at all time highs prior to the events that lead to the merger with    	Dynegy provide "significant earnings and cash flow opportunities with unique competitive advantages," 		according to Greg Whalley, president and chief operating officer. Core businesses include the natural gas 		pipeline business, and the gas and power, retail and coal busniesses in North America and Europe.
?	Non-core businesses such as broadband and Azurix will be divested and the earnings will be used to repay 		debt and reinvest in core businesses.
?	Businesses Under Review are potential future markets outside of power and gas wholesale businesses.

The conference call is separated into five sections: Introduction, Business Overview, Business Segment Update, Financial Review and Outlook and Q&A session for easy access to needed information. Click here  to listen to the conference call.

Dynegy and Enron Investor Conference Call: In Monday morning's conference call, Dynegy and Enron executives reviewed the merger details and fielded questions from investors. Chuck Watson, Dynegy chairman and chief executive officer, reiterated the strength of Enron's core business units and the high level of integrity of the people working in the trenches. Watson and Ken Lay also spoke of the advantages that Enron's business units would bring to the new organization with Watson making specific note of EES. "EES is three to five years ahead of Dynegy's retail unit" and is an "earnings contributor and growth engine that will continue in the combined company" according to Watson. The conference call replay will be available until 5:00 p.m. EST, Monday, November 26. Click here  to listen to the conference call.

Conference Call Slide Show: If you don't have time to listen to the conference, the slideshow presentation is also available. Click here  to view the presentation.

Enron Elects New Treasurer: Raymond M. Bowen, Jr., the former chief operating officer of Enron Industrial Markets, has been elected as the new executive vice president - finance and treasurer. "Ray has extremely good credibility with the investment community," according to Ken Lay and is "well respected and trusted by banks and other financial institutions."

EES Customer Corner
Starwood Makes the Grade: EES customer, Starwood Hotels & Resorts Worldwide, Inc. earned the distinction of having over 30 of its top hotels and resorts included in Conde Nast Traveler's 2001 Readers' Choice Awards List. The November 2001 edition of Conde Nast Traveler includes the magazine's 14th Annual Readers' Choice Awards that features the Top 100 "Best in the World" list which rates the best in hotels, resorts, cities, islands, cruise lines, airlines and car rentals. Nine Starwood properties earned the distinction of making the Top 100 "Best in the World" hotel list, while 24 additional Starwood properties were included in other top regional hotel and resort lists.

University of California Irvine Receives Energy Grant: The University of California, Irvine, an EES customer, has received a $3 million grant from the California Energy Commission for research designed to promote more widespread use of alternative fuels and power generation.

The Buzz will return on November 29
Have a happy and safe Thanksgiving


I am getting a jacket made for your dad to give your mom at Christmas.? I
need to get an idea of her waist size.? He gave me a few measurements off a
jacket in her closet, but I don't have any idea about waist or hips.? If
either of you have a good guess let me know ASAP.? Thanks

Chris

Do You Yahoo!?
Yahoo! Shopping -  Thousands of Stores. Millions of Products.


Attached is a draft press release regarding NBP's intent to purchase ENA's
assets in the Powder River and Wind River Basins.  Please return all comments
to me via e-mail by 5:00 pm on Tuesday, August 22.  If you have any
questions, please call me at ext. 3-9053.

Thanks.

Eric


Mark your calendar!  The Corporate Holiday Party is on Saturday, December 9th
at the Museum of Natural Science.  Your formal invitation will be
hand-delivered within the next two weeks!


Let's discuss when we both can talk.  MHC

 -----Original Message-----
From: 	"Notestine, Kerry" <KNotestine@littler.com>@ENRON [mailto:IMCEANOTES-+22Notestine+2C+20Kerry+22+20+3CKNotestine+40littler+2Ecom+3E+40ENRON@ENRON.com]
Sent:	Friday, August 17, 2001 10:16 AM
To:	Cash, Michelle
Cc:	Zimmermann, Ashley
Subject:	FW: Child Pornography issue

Michelle:

I wanted to follow up with some additional information regarding the child
porn issue.

The consensus seems to be that the company does not need to report the child
porn if it does not want to.  The only exception to this is individuals
engaged in an electronic communication service or a remote computing service
to the public are obligated under 42 U.S.C. 13032 to report child porn to
the Cyber Tip Line at the National Center for Missing and Exploited
Children.  I looked at the definitions of "electronic communication service"
and "remote computing service" and the second does not seem to apply
although the former could apply.  The statute appears to qualify both as
providing those services "to the public" so I would not think an email
system for employees would apply.  The definition of electronic
communication service is pretty broad though.  If you want me to investigate
this further let, me know, but I would think we have a good argument that we
do not provide these services to the public.

The child porn statute, 18 U.S.C. 2252A, covers pornography involving girls
under the age of 18, so much porn could be child porn.  There are enhanced
penalties for certain types of child porn and for child porn involving
children under the age of 12.  There is an affirmative defense under the
statute if the possessor of child porn destroys it or reports it to a law
enforcement agency.  Therefore, it seems the best course of action is to
destroy anything the company has and there does not appear to be a reporting
obligation.  Ashley anonymously called the FBI and the DA and their
responses are indicated below.  The information obtained from the FBI and
DA's office is consistent with my recommendations.

Kerry E Notestine
Littler Mendelson, PC
1900 Chevron Tower
1301 McKinney Street
Houston, Texas 77010
713.652.4748
713.951.9212 (fax)
knotestine@littler.com
www.littler.com

> -----Original Message-----
> From:	Zimmermann, Ashley
> Sent:	Thursday, August 16, 2001 4:00 PM
> To:	Notestine, Kerry
> Subject:	Child Pornography issue
>
> Kerry,
>
> I did a little bit of further research on this issue.  First, as Brian
> King stated, simply downloading or making a copy of child pornography for
> any reason-even to provide it as evidence to law enforcement- is a crime
> in the U.S., so the client should not attempt to copy it.  The client
> should attempt to obtain the URL (Web address) and report that information
> to law enforcement if the client decides to report it.
>
> Second , the statute making it illegal to knowingly receive or distribute
> child pornography through interstate or foreign commerce through any
> means, including by computer, (or receive or distribute child pornography
> that has been received or distributed by someone else through interstate
> or foreign commerce), in the special maritime and territorial jurisdiction
> of the United States, is 18 U.S.C. Section 2252A.
>
> It is not clear whether our client has a duty to report the finding of
> child pornography on its computer system.  42 U.S.C. Section 13032 states
> that whoever, while engaged in providing an electronic communication
> service or a remote computing service to the public, through a facility or
> means of interstate or foreign commerce, obtains knowledge of facts or
> circumstances from which a violation of sections... 2252A, involving child
> pornography, is apparent, shall, as soon as reasonably possible, make a
> report of such facts or circumstances to the Cyber Tip Line at the
> National Center for Missing and Exploited Chidlren.  (The number for the
> Cyber Tip Line is 1-800-843-5678.)
>
> Depending upon how you read the above paragraph, our client might have a
> duty to report its finding child pornography on its computer system to the
> Cyber Tip Line, despite the fact that it has been unable to determine who
> put it on there.  For practical advice, I contacted the FBI and a Harris
> County D.A.  The FBI duty agent I talked to said that if the company does
> not know who put the pornography on there, they do not have a duty to
> report it.  However, he suggested that they contact the Field Office in
> San Juan, Puerto Rico because the office might have certain equipment,
> specialists, etc., that could assist the client in determining who put the
> child pornography on the system and further investigating the issue.  The
> phone number for the FBI in San Juan is:  (787)754-6000, and if the client
> calls he/she should just ask to speak to a duty agent and explain what
> they found and how they found it.  (Note, there is also a special FBI
> Office that handles crimes against children, that office's number is:
> (202)324-3666.)
>
> Additionally, the Harris County D.A. I talked to was not concerned that it
> would be some type of spoliation of evidence to destroy the pornography
> and agreed that it is a crime simply to knowingly receive it, but
> recommended that the client contact the FBI in Puerto Rico so that they
> could decide whether they wanted to pursue it before the client destroyed
> it.
>
> Let me know if you wish me to look into this further.
>
> Ashley
>

----
This email may contain confidential and privileged material for the sole use of the intended recipient(s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender by reply email and delete all copies of this message.

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

Littler Mendelson, P.C.
http://www.littler.com


Cheryl Nelson
Senior Counsel
EB3816
(713) 345-4693
----- Forwarded by Cheryl Nelson/NA/Enron on 03/30/2001 01:33 PM -----

	"Meytina, Anna Confidential Memo-Counsel (Exchange)" <ameytina@bear.com>
	03/30/2001 09:04 AM

		 To: "'Cheryl.Nelson@enron.com'" <Cheryl.Nelson@enron.com>
		 cc:
		 Subject: Institutional Account Agreement

Cheryl:

Attached please find marked and clean copy of the Institutional Account
Agreement.

Regards,

Anna Meytina

 <<IAA032701.doc>>  <<IAA032701-clean.doc>>

 - IAA032701.doc
 - IAA032701-clean.doc
***********************************************************************
Bear Stearns is not responsible for any recommendation, solicitation,
offer or agreement or any information about any transaction, customer
account or account activity contained in this communication.
***********************************************************************


I am in receipt of the Fehr's comments to our option agreement.  In reviewing
them, I have the following comments:

The paragraph (2) change that says they can compel us to buy their land upon
a Triggering Event occurring is not going to work, because this is a put
option on their part which hurts our hard cost avoidance issues.  We
carefully reworded previous put option language to avoid this.    Also, how
can we be bound to a deal when the agreement has expired ?  I think we would
need to say that "if we decide to build the plant after the option period
expires, then that would serve to extend the term of this agreement, however,
if the option agreement expires unexercised for a one year period then we
won't be bound to the deal.

If the provisions of his comment (5) are indeed parallel to another similar
paragraph in the document I don't have a problem with it, but "specific
performance" scares me in general.  Your (collective) call.

Lets wrap this one up fast.  I want to resolve it soon so I can use it as
leverage with Ledford and not have him influence them.  He picked a good to
go on vacation, but is back in on Monday.  I also told the Fehr's that if we
could do this before the 15th I would go for $185,000 vs. $175,000.  Since we
were about five days longer than promised, I can justify the delay to end of
next week, but I don't want them to think I was just blowing smoke on the
extra $10,000.

Fred :  Refresh my memory on who I need to go to for the option payment check
?


I've gone ahead and entered the counterparty name "Sierra Pacific Industries,
Inc." in Chris Foster's deal #573679, in the interest of moving it along
through the confirmation process. (The deal was done on 4/6 and flowed on
4/10.)

I spoke with Bob Ellery (Sierra) yesterday and he seemed fine with the name
we have in our system, although I'm sure he's not the final authority. Then I
spoke with the Confirms group today and they were ready to get the deal off
of their new deal report. So, since I haven't heard anything to the contrary,
I changed the deal from it's "new counterparty" status.

Please let me know if this presents a problem for any of you.

Thanks,
Kate Symes
Trading Support
503-464-7486


The Integrated Solutions Center (ISC) has received recommendations from you, our eHRonline users, on ways we might improve the time entry process as it relates to holiday pay.  Based upon these suggestions, the ISC is implementing a new time entry process to record holiday time, which is effective immediately, beginning with the February 16-28, 2001, time-entry period.

Holiday pay for all eligible employees must be entered as "Company Observed Holiday", and the recent company-observed holiday of President's Day (Monday, February 19, 2001) must be coded "Company Observed Holiday".  However, if you're an employee who works a 12-hour shift schedule, there are no changes to your time entry process for Holiday pay.  Please continue to record your holiday time in the usual manner.

If you're a salaried, non-exempt employee and you work a holiday, you must enter "Company Observed Holiday" for that holiday and enter "Regular Work Time" for all hours worked on the holiday to ensure proper payment of overtime for the day.

Discretionary holiday time has been limited to eight (8) hours for all eligible employees, per the Enron Policy on Work Hours/Holidays/Vacation (<http://hrweb.enron.com/policyandprocedure/docs/12-hours.pdf>).   eHRonline will not allow you to record more than eight (8) hours per calendar year under the "Discretionary Holiday" time-entry code.

Detailed instructions on coding holiday time are available within SAP eHRonline Process Bulletin HR -01-04, which can be accesed through the following link:  http://sap.enron.com/sap_doclib/user/file_list.asp?cabinet_id=145.

If you have questions regarding this new eHRonline functionality, please contact the ISC Call Center at (713) 345-4SAP (4727).  Questions about the Enron Policy on Work Hours/Holidays/Vacation should be directed to your Human Resources representative.

Thank you.


Mike.  Generally the language is fine, but I tweaked to make sure it is
clearer.  Please review and let me know if you have any questions.


I only need a ride home from the board meeting because I'll have to ride out there with Veronica early to set up.  I'm glad you liked the note.  I love you and will talk to you tonight.
Love,
Caron


Dear Fellow Longhorn:

As Enron prepares to meet the challenges and opportunities of the 21st
century, it is critical that the best and brightest graduates from the
University of Texas continue to consider Enron as one of their most
compelling career opportunities.

While Enron,s commitment to UT is solid, we as alumni must work together to
forge stronger ties to our alma mater. Please take a role in recruiting new
employees from the University of Texas, mentoring associates and analysts and
providing financial support. Enron is pleased to match your contribution
dollar for dollar ) up to $15,000 per employee annually through our Matching
Gift Program!

If you are already contributing via our payroll deduction program ) THANK
YOU! If you would like to join the many Enron alumni who support UT, now is
the perfect time to start!  If you would like to increase your contribution
or enroll in the payroll deduction program, please complete a new pledge card
available on-line.

Community Relations has greatly simplified the giving and Matching Gift
process. Your pledge card gift will automatically be matched without
submitting a separate Matching Gifts form whether you choose to sign up for
the payroll deduction program or attach a check. Participating in Enron,s
monthly payroll deduction plan is the quickest and easiest way to contribute!
If you prefer to contribute on your own via check, please make sure that you
take advantage of Enron,s Matching Gift program by completing a Matching Gift
form.

Pledge cards and Matching Gift forms are available on-line in the &Gifts,
Grants and Giving8 section of the Community Relations intranet site
http://home.enron.com/cr/giving/university. Please forward all completed
pledge cards and Matching Gift forms to Vanessa Bob at EB2019.

Again, thank you for your support. Working together gives us an opportunity
to enrich the educational experiences of current Longhorns and ensure that
Enron has a competitive talent pool from which to recruit its future leaders.

Sincerely,

Rick Causey
EVP and CAO


My details to Jeff and Sherri
---------------------- Forwarded by Sally Beck/HOU/ECT on 10/18/2000 10:41 PM
---------------------------

	Enron North America Corp.

	From:  Sally Beck                           10/18/2000 10:02 PM

To: Jeff Skilling/Corp/Enron@ENRON
cc: Sherri Sera/Corp/Enron@ENRON
Subject: Agenda and Speaking Points for October 24 Engagement

Thanks in advance for agreeing to speak at the Global Operations Controller
Forum that I am hosting next week.  There will be approximately 30 Enron
business controllers present at the meeting.  All have responsibility for mid
and back office operations for the following Enron entities:  Enron North
America, Enron Europe, Enron South America, Enron Global Markets, Enron
Industrial Markets, Enron Broadband Services and Enron Energy Services.
Attendees will be here from Houston, Calgary, Tokyo, Sydney, London and New
York (metals business).

Attached for your reference is the agenda. There may be some slight changes
before the forum begins, but this will give you a good idea of the topics to
be covered and the other speakers who will address the group.

You are scheduled to address the group as follows:

Date:  Tuesday, October 24, 2000
Time:  8:30 am
  (breakfast will be served at 8:00 and you are invited to join us)
Place:  The Warwick Hotel
  The Versailles Room - 12th Floor
  5701 Main Street
  Houston,  TX  77005

The group would like to hear about Enron's performance, your outlook for the
remainder of 2000 and into 2001, your viewpoint on the future of the company
and next growth opportunities, etc.  With a small group, your talk can be
informal and you do not need to prepare slides (unless you would like to do
so).  Q&A afterwards would be great.  Key speaking points that would enforce
the value of this conference for this group would be:

recognition of a job well done in supporting explosive business growth in
2000

the value you place on the jobs performed by operations controllers to ensure
integrity in mid and back office functions

the importance of tight operational controls in enabling business growth for
Enron (your loose/tight analogy would be great, as many have not heard that)

the independent control role that we play and our responsibility to "raise
the flag" on issues if needed


I'll do it.  I saw Steve Reynolds (the govs assistant), today, and told him I
would do it.  I have a lot of respect for Geringer.  I may try to persuade
them that they should reach out to FERC and Congress as a state that sees the
need for a federal role in transmiission and encourages FERC to act.  Any
background you have would be most appreciated.

From: Susan M Landwehr on 05/20/2001 09:35 PM
To: Steven J Kean/NA/Enron@Enron
cc: Richard Shapiro/NA/Enron@Enron

Subject: Re: Gov Geringer meeting

Steve--unfortunately, I really do need you to do this one.

	Steven J Kean
	05/17/2001 12:04 PM

		 To: Susan M Landwehr/NA/Enron@Enron
		 cc:
		 Subject: Re: Gov Geringer meeting

I'd prefer to skip.  How big of a problem would that be?

From: Susan M Landwehr on 05/14/2001 03:09 PM
To: Steven J Kean/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron
cc: Maureen McVicker/NA/Enron@Enron, Ginger Dernehl/NA/Enron@Enron, Paul
Kaufman/PDX/ECT@ECT

Subject: Gov Geringer meeting

Steve/RIck ---as you may be aware, Governor Geringer personally asked Ken Lay
to come to the kick off meeting of the Wyoming Energy Task Force, a group
that was created by legislative mandate last month.  The meeting is on May
30th in Cheyenne.  Mr. Lay told the Governor that he would not be able to
make it on that date, but promised that a senior Enron exectutive would be
there.  I spoke with Governor Geringer's staff person again this past week
and was hoping that Paul Kaufman could be the senior executive, but no such
luck (unless you give Paul a huge new title!).

In talking with Maureen I understand that you have a previous conflict Steve,
but I am hoping that you can review your calendar to see if you could make an
adjustment in order to meet the request of the Governor.  Your speech would
be in the morning--I've been told about 9 o clock or so---which would allow
for you to leave by noonish.

I


No, but let me see what I can come up with.  It's early now, so it will be
about another hour before they start to show up here in the office.  I'll let
you know.


Attached is Jeff's backgrounder in the event you call Hertzberg.
---------------------- Forwarded by Steven J Kean/NA/Enron on 06/15/2001
01:56 PM ---------------------------
From: Jeff Dasovich on 06/15/2001 01:05 PM
Sent by: Jeff Dasovich
To: skean@enron.com
cc:

Subject: Background and Message Points

Steve:
Please review and edit as needed.  I'm on my way to airport to return to SF.
If you need me, please page.

Best,
Jeff


-----Original Message-----
From: 	Philpott, Charles
Sent:	Tuesday, December 11, 2001 10:28 AM
To:	Slone, Jeanie
Subject:	New_Co Retention Payment File

Jeanie,

See attached.

Charles


Daren

We just did a deal for the rest of the month for 10,000/d at meter # 1552
QE-1 @ $4.355 .... can you let me and Robert Lloyd know what the sitara # is?

Thanks


Give me a call.

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


Happy Birthday!
Sounds like a fun time.
I have a dentist appt out by the house at 4:00 pm so I will have to opt for dinner next week!
Hope you have a fun night celebrating your ah? 28 birthday, right?
Call when you figure out what's good for you.  Wednesday looks best for me right now.

	Swig

 -----Original Message-----
From: 	Umbower, Denae
Sent:	Monday, November 05, 2001 9:51 AM
To:	Schwieger, Jim
Subject:	FW:  Tuesday
Importance:	High

Hey !  What has been going on ?  We never did make it to dinner.
I booked a last minute trip to the Islands two weeks ago and ran into Legler at the airport -- they were headed to France and their gate was
next to ours.
Anyways, if you get a chance - I thought the below would be a good way to see you and catch up or even get to see some of the old gang.
Hope you can make it - and if not, let's do dinner sometime next week ?

Denae
 -----Original Message-----
From: 	"Robin Vint" <rvint@houston.rr.com>@ENRON COMMUNICATIONS
Sent:	Saturday, November 03, 2001 9:51 PM
To:	Jill Van Voorhis; jnewman@powerbond.com; levans3@enron.com; pvint@enron.com; Charley Ballmer; Celeste Higgins Ballmer; Kal Abdalla; Curless, Amanda; Margaret Ceconi; Scott Bolz; Susan Cisneros; Lamadrid, Victor; Anna Caeg; pvint@enron.com
Cc:	Denae Umbower; Helen Woodby
Subject:	B-day Blowout for Helen and Denae - Tuesday
Importance:	High

Please join us to celebrate the birthdays of Helen and Denae (no they are
not twins) on Tuesday Nov. 6th at The Front Porch on W. Gray.  Tuesdays are
Steak Night at The Front Porch in case you get the munchies.  The
festivities will begin between 6:30 and 7:00.

Please rsvp via email if you can attend this fabulous event.  Hope to see
you there!


The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete.  Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein.  Any
opinions expressed herein are solely those of the author.  As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates.  , 2001 Carr Futures

The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.

Crude     http://www.carrfut.com/research/Energy1/crude11.pdf
Natural Gas     http://www.carrfut.com/research/Energy1/ngas11.pdf

Distillate and unleaded charts to follow.

Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG11.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG11.pdf

Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL11.pdf

Carr Futures
150 S. Wacker Dr., Suite 1500
Chicago, IL 60606  USA
Tel:  312-368-6149
Fax:  312-368-2281
soblander@carrfut.com
http://www.carrfut.com


done.

	From:  Drew Fossum                           11/03/2000 02:48 PM

To: Susan Scott/ET&S/Enron@ENRON
cc: Mary Kay Miller/ET&S/Enron@ENRON, Shelley Corman/ET&S/Enron@ENRON, Glen
Hass/ET&S/Enron@ENRON

Subject: Re: final draft

Great--please make one change for me--change  "influence it" to "comment on
it"  at the end of the first par. of B.  thanks DF

Susan Scott
11/03/2000 02:32 PM
To: Mary Kay Miller/ET&S/Enron@ENRON, Drew Fossum@ENRON, Shelley Corman, Glen
Hass/ET&S/Enron@ENRON
cc:

Subject: final draft

Here is what I think is a final draft...I'm going to give it one last read
thru...if you have further comments let me know immediately.  Thanks.


I don't know about meter 4486, but the other three are good.  In addition,
meter 5792 is another meter that is serviced in the Lufkin-Diboll area.

	Enron North America Corp.

	From:  Heidi Withers                           03/14/2000 10:14 AM

To: Eric Bass/HOU/ECT@ECT
cc: David Baumbach/HOU/ECT@ECT, Bryan Hull/HOU/ECT@ECT, Michael
Walters/HOU/ECT@ECT
Subject: Additional Transport Expense on Entex meters

Eric, I am checking the process now for incorporating all transport revenue
due Ed for delivery meters in the Texas region.  The following meters have
transport rates attached to them which are above and beyond the matrix rates
Ed quotes to Tom.  I believe that we are already capturing all Ed's
revenue/Tom's expense for this gas at these meters, but want to be sure of
that.   Would you let me know if these are the meters for which we are
manually moving around money from Tom to Ed for the residential portion of
the Lufkin-Diboll volume?

I believe that the industrial portion of this volume is included already as
part of Ducote's deal, and I believe that the residential portion is volume
which you determine and then move from Tom to Ed every month.

Is this right?

Heidi


hey there!  hope everything is going great with you.  things are still going
pretty smoothly with me - thank goodness.  my actual due date is 6/11 so i
only have about 2 months left.  i'm starting to realize why people are always
miserable in the last couple of months.  anyway - my address is 4419
Stackstone Ln.     Katy, TX 77450.  Talk to you soon.