So what are the actions coming out of this?  Just pushing IT (who don't seem
to have the AS400 resources) won't fix the problem.  Also, what is the plan
re SAP?

Mike Jordan@ECT
02/26/2001 01:11 PM
To: Richard Causey/Corp/Enron@ENRON, Rick Buy/HOU/ECT@ECT, Sally
Beck/HOU/ECT@ECT
cc: Fernley Dyson/LON/ECT@ECT, Michael R Brown/LON/ECT@ECT, Ted
Murphy/LON/ECT@ECT

Subject: Metals - Imminent Actions - an update

Rick / Rick / Sally

I attach the  'executive' summary of a note sent to the office of the chair
last week detailing current operational difficulties with the Metals
Merchanting business. Subsequently an 'all hands' meeting was called to
discuss the operational issues and the business imperatives of
Off Balance Sheet Facility ("OBSF") renegotiation
Minimising working captial
SAP implementation
The notes of that meeting are also attached at the bottom of this email

Should you require any further information please call, otherwise I will
forward updates as they are completed.

Regards

Mike

ISSUE

The Physical metals business implemented an Off Balance Sheet Structure
(OBSF) pre year-end to meet Enron requirements for gearing ratios.

Whilst this does not present undue problems for LME warrants, these being
bearer documents, it does present an issue when physical metal, the value of
which depends upon brand and location, is placed into the facility. Given the
hard deadline of year-end the operational support of this process initially
took place on spreadsheets.

The impact of the OBSF on the operational side of the physical business
should not be underestimated. The process of moving material off and on
balance sheet places considerable strain from trading through to settlements,
particularly when there is an absence of necessary control functionality in
the AS400. With the specified functionality it is believed that all
operational and trading issues arising from OBSF can be managed
satisfactorily.

The core functionality, which was due prior to the year-end, was released
during January but was subsequently found to have introduced +bugs, to the
integrated business control processes. Whilst an improvement on having no
OBSF functionality, the +bugs, have had an increasingly negative effect on
the control environment, compounded by the fact that IT can not provide a
guaranteed delivery for the +bug, fixes and non core ,reporting,
functionality.

This has given rise to the following concerns:

? There are insufficient experienced resources to fully reconcile stock at a
brand & location level to coordination records (the global position is
reconciled however).
? It is not possible to substantiate the DPR for EM&CL as:
? a) P&L on spread moves from Cash to 3 months positions (and related cash to
3 months provisions) can not be produced by the system and must be estimated,
and
? b) System bugs have created uncertainties over trial balance values.

These concerns are compounded by the following:

? The most experienced AS400 IT developer for the EM&CL business has
resigned. He is currently working his 6 months notice which will expire in
July 2001.
? The most experienced AS400 IT developer on the EML side of the business has
also resigned. He left in January 2001.
? There is no documentation for the AS400. It is therefore difficult for
experienced AS400 programmers to get upto speed on the system.

Conclusion

It is essential that we do not become hostages to the development of the
AS400 system and the renegotiation of the OBSF facility with Barclays. The
current situation has arisen due to non-delivery of IT developments and tight
timescales on the finalisation of the OBSF facility.

To meet Q1 end requirements (i.e. full production of the DPR and stock
reconciliation), IT and the OBSF deal team must make concrete commitments on
delivery timeline. The business will not be able to commit to successful
implementation of the facility and resubstantiation of the Trial Balance
without these

---------------------- Forwarded by Mike Jordan/LON/ECT on 26/02/2001 16:18
---------------------------

Mike Jordan
26/02/2001 16:18
To: Michael R Brown/LON/ECT@ECT, Fernley Dyson/LON/ECT@ECT, Joe
Gold/LON/ECT@ECT, Michael Farmer/EU/Enron@ENRON, Michael J
Hutchinson/EU/Enron@Enron, Anne Edgley/LON/ECT@ECT, Melissa
Allen/LON/ECT@ECT, Mark Pickering/LON/ECT@ECT, Paul Chivers/LON/ECT@ECT,
Robert Campbell/LON/ECT@ECT, Andrew Cornfield/LON/ECT@ECT, Howard
Carter/EU/Enron@Enron, Bill Appleby/LON/ECT@ECT, David P Tregar/EU/Enron@Enron
cc:

Subject: Metals - Imminent Actions - notes of meeting 23 rd Feb

To all

I seek to clarify the actions discussed at Friday's meeting and to emphasise
the critical importance of getting all the below completed as quickly as
possible to meet our Q1 requirements ( revenue targets, balance sheet
targets, interest expense minimisation etc ). The proposed tactical plan that
was circulated is not attached as it has already been superceded!

There was agreement on several broad areas of immediate focus with specific
objectives and accountabilities -

IT resourcing

Communicate priority to HR about the importance of obtaining skilled AS400
programmers - for tactical short term and for long term work - action MP
Resourcing for long term AS400 'off-load' initiative to be completed asap -
action MP
Merchanting resource focus to be on bug fixes impacting MO ability to update
OBSF options in AS400 and for traffic to update recent location movements of
stock in OBSF - action RC ( deadline 1 week )
Completion of inception document for full OBSF inventory control
functionality - action RC ( deadline 1 week )
Split of resources for SAP interface - only EML SAP implementation is now
planned for 1/4/01 - action RC to confirm resource reallocation 27/01
Immediate improvement in IT Operations support required ( including
completion of transfer of support responsibility from Dev. to Ops. ) - action
MP

Operational Support

MO risk/trade accounting resources to focus on rebooking all remaining
transactions on OBSF inventory spreadsheet - action HC ( deadline asap )
Validation of system generated p&l to commence following the above - action
HC ( deadline asap )
Timetable for catch up of traffic OBSF location movements to be completed
with John Lunzer 27/02 - action HC
Determine action for improvement in delivering metal to facility ( initial
assumption for recent working capital increase was that we had operationally
slowed down in placing qualifying material into facility ) - action HC / AC
(deadline asap)

Working Capital

Detailed daily analysis of working capital movements to be produced and
formatted in style of sources and uses of funds   ( including facility
headroom ) - action AC ( deadline asap )
Forward estimate of working capital to be produced for rest of quarter and
used for estimation of full interest expense - action AC, MJ & MA ( deadline
asap )
Analysis for trade receivables ( and reasons for recent increase ) and
investigation of possible factoring - AC/MJ and AE/BA ( deadline asap )
Determining extent to which pricing signals for working capital usage can be
communicated to traders, traffic and operations - action JG, MJ ( contingent
on above )

OBSF negotiation

Documentation of current negotiation issues ( including AA sign-off issues )
to be drafted and circulated with clear accountabilities  - action MA/DT/BA
(deadline 26/3)
Operational impact of agreement to be considered in parallel to negotiation -
action HC/AC/BA

LME relationship

Consider utilising a US subsidiary to book OBSF transactions to negate LME
reviewing facility as part of regulatory regime - action MA/FD
Monitoring notice of investigation issued by LME  -action FD/DT


Good Morning!

FYI - Cheryl will not be in today, due to an unexpected delay in her
schedule.  She will return to the office tomorrow morning.  Should you need
assistance, feel free to contact me directly at 5-3317.  Thank you for your
attention to this matter.

Regards,
Keegan


Mark --

Who can I speak with about the details of Enron's role in Netco (primarily ownership structure)? I assume that we have structured the arrangements so that FERC won't view Netco as an "affiliate" of Enron.  I want to check with FERC counsel.

Thanks,

Jim


SHirley,

Please, renew it.

Vince
---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 12/29/2000
11:41 AM ---------------------------

	Enron North America Corp.

	From:  Stephanie E Taylor                           12/28/2000 09:46 AM

To: Vince J Kaminski/HOU/ECT@ECT
cc: Shirley Crenshaw/HOU/ECT@ECT
Subject:

Dear Vince,

This is to inform you that your subscription to Power Finance and Risk will
be up for renewal in February.  In the past, such renewals were routed to
Info Central to be paid.  Our department has changed its focus to research.
As a courtesy, we will be happy to process your subscription for the next
year.  Please let me know if you would like to renew and include your Cost
Center and Company Codes with the renewal.
If you have any questions, please do not hesitate to call me.
Sincerely,
Stephanie E. Taylor
eSource (formerly Info Central)
713/345-7928


Jeff:

?

I was intrigued by your interview in the 10/30/00 issue of InternetWeek
Onlineas we seem to share the desire to transform the system.? Despite Enron,
s better business model, robust software infrastructure is as critical to
Enron,s success as for any other Fortune 1000 company.? Should you agree with
our mission to deliver that infastructure, we would be most honored to have
you join our Advisory Board (includes stock option compensation).

?

SEADE Software is developing a new category of software we call an
Application Deployment Engine (ADE).? I stress that this is a new category of
software.? The ADE shares some of the features of several existing
categories), but no existing product, or combination of products, has
thepotential of having such a profound, disruptive affect on the process of
developing complex, enterprise-scale eBusiness software.? The ADE enables
rapid deployment of feature-rich, secure, scaleable, open-platform,
best-of-breed eBusiness software in &Internet Time8.? In addition, it
provides for better and more cost effective life cycle management and
integration of that software.? Note that the SEADE team has previously built
the ADE three times as the framework for specific vertical applications.?

?

While this is a new category of commercial software, it,s not a particularly
new idea.? What we are doing has in fact always been the way the academic
world has said complex software systems should be written.? The evolution
from structured languages, to object orientation has been a continual effort
to find a means to leverage the effort and resources used to deploy past
applications for the deployment of the next application.? Most enterprise
software shares between 60-90% of its core foundation and features with all
other software.? We call these common horizontal components the &Common
Horizontal Framework8,of a custom application.? The vertical components are
the parts that make the software valuable enough to risk the resources to
develop and deploy mission critical applications.

?

SEADE Software,s core competency is the delivery of the horizontal components
that make up the majority of all business applications.? We deliver this in a
highly customizable, component-based, platform-independent, fully
internationalized, pre-fabricated software application we call an ADE.? The
ADE enables fast-tracked development of new integrated eBusiness applications
and provides a common reference for legacy Enterprise application integration
(many-to-many EAI).? We empower the Fortune 1000 to maximize their core
competency by leveraging ours.

?

I,ve attached for your review our Executive Summary, Business Case Slideshow
pitch, and Advisory Board bios.? Please let me know if you find our offer of
interest.? Thank you for your consideration.

?

?

Best regards,
Scott

Scott Peterson
SEADE Software, Inc.
512.266.3234
512.695.1246 cell
speterson@seade.com
 - SEADE Executive Summary Rev 18.pdf
 - SEADE Advisory Board Rev 2.pdf
 - SEADE Executive Summary Rev 18.pdf


I will make a copy of my markup as well
---------------------- Forwarded by Andrew Kelemen/HOU/ECT on 08/24/2000
05:48 PM ---------------------------

Gray Calvert
08/23/2000 07:45 PM
To: Andrew Kelemen/HOU/ECT@ECT
cc: Jonalan Page/PDX/ECT@ECT
Subject: CIM Revisions

Andy,

Here is the most recent copy for your review.  The biographies and historical
performance and historicals have been requested and we will insert as soon as
we receive.

Gray


Thanks for the kind words.  Mark

 -----Original Message-----
From: 	Crady, Ned E.
Sent:	Tuesday, August 21, 2001 5:21 PM
To:	Haedicke, Mark E.
Subject:	FW: Formation of Enron Management Committee

	Mark,

		Its good to see more legal on the committee. Congrats!

		It should be very educational, and the whole department will benefit from the insight you take away.

	Ned

 -----Original Message-----
From: 	Enron Announcements/Corp/Enron@ENRON [mailto:IMCEANOTES-Enron+20Announcements_Corp_Enron+40ENRON@ENRON.com]  On Behalf Of Ken Lay-@ENRON
Sent:	Tuesday, August 21, 2001 4:57 PM
To:	All Enron Worldwide@ENRON
Subject:	Formation of Enron Management Committee

I am pleased to announce the formation of the Enron Management Committee.  The Management Committee comprises our business unit and function leadership and will focus on the key management, strategy, and policy issues facing Enron.  The Management Committee will supplant the former Policy Committee and will include the following individuals:

Ken Lay - Chairman and CEO, Enron Corp.
Ray Bowen - COO, Enron Industrial Markets
Michael Brown - COO, Enron Europe
Rick Buy - Exec VP & Chief Risk Officer, Enron Corp.
Rick Causey - Exec VP & Chief Accounting Officer, Enron Corp.
Dave Delainey - Chairman and CEO, Enron Energy Services
Jim Derrick - Exec VP & General Counsel, Enron Corp.
Janet Dietrich - President, Enron Energy Services
Jim Fallon - President & CEO, Enron Broadband Services
Andy Fastow - Exec VP & CFO, Enron Corp.
Mark Frevert - Chairman & CEO, Enron Wholesale Services
Ben Glisan - Managing Director & Treasurer, Enron Corp.
Mark Haedicke - Managing Director & General Counsel, Enron Wholesale Services
Kevin Hannon - CEO, Enron Global Assets & Services
Stan Horton - Chairman & CEO, Enron Transportation Services
Jim Hughes - President & COO, Enron Global Assets & Services
Steve Kean - Exec. VP & Chief of Staff, Enron Corp.
Louise Kitchen - COO, Enron Americas
Mark Koenig - Exec VP, Investor Relations, Enron Corp.
John Lavorato - President & CEO, Enron Americas
Mike McConnell - President & CEO, Enron Global Markets
Jeff McMahon - President & CEO, Enron Industrial Markets
Jeff Shankman - COO, Enron Global Markets
John Sherriff - President & CEO, Enron Europe
Greg Whalley - President & COO, Enron Wholesale Services

	After we convene the Management Committee later this week, I will make a further announcement regarding the Executive Committee.


FYI

> -----Original Message-----
> From: Tessicini, Mark
> Sent: Wednesday, December 20, 2000 4:18 PM
> To: Asselin, Jacques
> Subject:
>
>  <<Charges for Out Service.xls>>

 - Charges for Out Service.xls


Please see the attached file, and call if you have any questions ((281)
647-0769).


Zhiyong,

We have decided to take the curve history with us to UBS for the attached curves.  We have changed the names for some of the curves so column J has additional curves that we would like to bring history.  We will not continue publishing those in the future however.

Thanks

Kam


For anyone who is interested in learning more about spectrum issues, on
Friday, January 5, 2001, we will be having a 1-day seminar on spectrum at
Enron in Houston.  Bennett Kobb (spectrum author/guru) will be lecturing,
courtesy of Jim Fallon.  Please let me know if you are interested in
attending and plan to be there.

Thanks.

Lara


Attached are  EES's Volumetric NYMEX and Basis positions for 7/18/2000.

Thanks,

Kyle


Kristina:

Pursuant to our conversation, attached is the form of Consent and Assignment for execution by Enron North America Corp. in connection with the natural gas and basis swaps to be assigned to Morgan Stanley Capital Group, Inc.

As I stated, our credit department is verifying the transactions being assigned so once I receive information from them, we will contact you with any questions or comments.

Please do not hesitate to call if you have any questions.

Thanks!

Marie Heard
Senior Legal Specialist
Enron North America Corp.
Phone:  (713) 853-3907
Fax:  (713) 646-3490
marie.heard@enron.com


please put Oct 20,2000 and Dec 29, 2000 on the schedule as vacation days

Thanks


I'll talk to you about it tomorrow.

Thanks Larry


Richard-

I have two requests that I hope you can help me with.  First, I wanted to see
if there was an executed document removing Intrust.  If there is, I would
like to get a copy of that.  Also, you mentioned a "side letter" agreement
drawn up to allow the GPs to have the right to remove Intrust.  I would also
like to get a copy of that document.  Let me know if you have any questions.

Thanks,

Russ
3-5297


Gentlemen,

Things are heating up, no pun intended. Therefore, it would be helpful if you
would prepare a closing list for the GE turbines moving out of WestLB.  I
know it is short, but I thrive on lists.

I cannot tell you how many calls I've swapped with ABB's rep about that
contract, without ever hooking up.  I see that we will be facing a fire drill
quickly in getting at least some of these transformers into the right
financing vehicle.  Therefore, please prepare a list of site specific issues
for that document as well.

Thanks,

Kay


Janette - Here is the report with my changes - I have not been able to find
Travis or Anne to see what changes if any they would like to add but will let
you know when I hear from them.

Mark T.


the first part of Sec.77-5-725(u) supports your statement ("to purchase...on
behalf of its members"). To me, that might support buying as agent in a way
that the action of MDEA would be a binding commitment of CPU. However,  the
second clause ("and to sell the same to its members") would seem to go the
other way.

Also note subsections o, p and q.

Under municipal law in Miss. there is the concept that a public body may not
"delegate" its statutory functions to others. I know you can't do it when
it's a discretionary public function being delegated to a non-public entity.
I'm not so sure about one public body delegating to another. I'd like to hear
from David Hunt on this.

>>> <Kay.Mann@enron.com> 06/06/01 03:42PM >>>

Would you read that to mean the authority to buy power "as agent for" the
Cities?  Seems not entirely clear but not entirely out of the question.

Kay


Bill,
Kirk from LADWP called back just after I talked to you. In that conversation he appoligized twice for the previous conversation.  Thus I dont think we need to pull the tapes for the conversation he and I had unless it is for your own amusement.  Being that he realized he was wrong and appologized I wouldnt want to jeopardize any future realationship with LADWP over one instance with him as he has been okay in the past.  However you will need to still pull the tapes for Geirs conversation which occured somewhere between 16:00 and 17:30.  Thanks.