Melba,

The following changes need to be made to the attached GTC for this product:

1.   Section 1:  Delete subsection (iv) and revise subsection (iii) to read
as follows:

(iii) unless it has notified the other party in writing to the contrary, it
is a domestic corporation (as such term is defined in Section 7701 of the
United States Internal Revenue Code of 1986, as amended);

2.   Section 2:  Before the paragraph beginning " Each payment will be
made...", the following paragraph should be inserted:

All payments under this Transaction shall be made without any deduction or
withholding for or on account of any Tax unless such deduction or withholding
is required by any applicable law, as modified by the practice of any
relevant governmental revenue authority, then in effect.  If a party is so
required to deduct or withhold, then that party ("X") shall (a) promptly
notify the other party ("Y") of such requirement, (b) pay to the relevant
authorities the full amount required to be deducted or withheld (including
the full amount required to be deducted or withheld from any additional
amount paid by X or Y under this paragraph) promptly upon the earlier of
determining that such deduction or withholding is required or receiving
notice that such amount has been assessed against Y, (c) promptly forward to
Y an official receipt (or a certified copy), or other documentation
reasonably acceptable to Y, evidencing such payment to such authorities, and
(d) if such Tax is an Indemnifiable Tax, pay to Y, in addition to the payment
to which Y is otherwise entitled under this Transaction, such additional
amount as is necessary to ensure that the net amount actually received by Y
(free and clear of Indemnifiable Taxes, whether assessed against X or Y) will
equal the full amount Y would have received had no such deduction or
withholding been required.  However, X will not be required to pay any
additional amount to Y to the extent that it would not be required to be paid
but for (i) the failure or breach by Y of a representation or warranty set
forth in Section 1 of these General Terms and Conditions or (ii) the failure
of Y, upon reasonable demand by X, to provide any form, certificate or
document that would allow X to make a payment to Y under this Transaction at
a reduced rate of, or without any, withholding for or on account of any Tax.

3.   Section 9:  Add the following definition for Indemnifiable Tax:

"Indemnifiable Tax" means any Tax other than a Tax that would not be imposed
in respect of a payment under this Transaction but for a present or former
connection between the jurisdiction of the government or taxation authority
imposing such Tax and the recipient of such payment or a person related to
such recipient (including, without limitation, a connection arising from such
recipient or related person being or having been a citizen or resident of
such jurisdiction, or being or having been organized, present or engaged in a
trade or business in such jurisdiction, or having or having had a permanent
establishment or fixed place of business in such jurisdiction, but excluding
a connection arising solely from such recipient or related person having
executed, delivered, performed its obligations or received a payment under,
or enforced, this Transaction).

4.   Section 9:  Add the following definition for Tax:

"Tax" means any present or future tax, levy, impost, duty, charge, assessment
or fee of any nature (including interest, penalties and additions thereto)
that is imposed by any government or other taxing authority in respect of any
payment under this Transaction other than a stamp, registration,
documentation or similar tax.

Please let me know if you have any questions or need any additional
information.

Best regards,
Susan

 -----Original Message-----
From:  Lozano, Melba
Sent: Monday, June 04, 2001 6:09 PM
To: Blumenthal, Jeff; Musch, Susan; Hagelmann, Bjorn; Moran, Tom
Cc: Hunter, Larry Joe; Lees, Lisa; Sever, Stephanie; Jones, Tana; Lambert,
Karen; Lombardi, Kelly; Sweitzer, Tara; Kenne, Dawn C.; Moorer, Torrey; Cass,
Robert B.; Meredith, Kevin; Walker, Chris; Gockerman, Matthew F.; Alatorre,
Carlos
Subject: Tanker Freight Approvals
Importance: High

Your review and approval of the following product type in the EOL Datamanager
is needed (for directions on approval , please see steps for approval at the
bottom of this e-mail). If you have any questions please call me at ext.
58986.
******** DO NOT APPROVE PRODUCT TYPES BETWEEN THE HOURS OF 6AM -
11AM***********

Trader:   Joe King

 << File: ENA Financial GTC (credit).htm >>     << File: Tkr Freight Swap
BITR 9 Jun01 WS.doc >>

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

STEPS FOR APPROVAL:

click the  START button
select  PROGRAMS
select  TEST APPLICATIONS
select ENRONONLINE CLUSTER(PROD)
 PROCEED WITH USUAL LOGIN/PASSWORD
click the Enron Online Production Cluster "START" button
select EnronOnLine (this is the EOL Datamanager)
 PROCEED WITH EOL LOGIN/PASSWORD
click on the "+" for EnronOnLine
click on the "+" for Product Types
click on the "+" for "Partially Approved"
select the product requiring review as stated in e-mail above
Right "mouse" click on "properties" to view product set-up


fyi

Also, you should contact Ken's assistant, Rosalee Fleming, to see when would
be a good time to give ken a briefing and see what else he needs.  I have
told Rosalee that you are preparing the materials for Ken.
---------------------- Forwarded by Steven J Kean/HOU/EES on 08/08/2000 12:32
PM ---------------------------

Jaime Alatorre@ENRON
08/08/2000 10:33 AM
Sent by: Jaime Alatorre@ENRON
To: Kenneth Lay/Corp/Enron@ENRON
cc: myzagui@ect.enron.com, Steven J Kean/HOU/EES@EES
Subject: Dinner with V. Fox

Dear Ken,
 Federico Sada, who is travelling with President elect Vicente Fox in South
America, called me this morning,
and asked me to give you the confirmed list of attendees to the dinner in New
York, Wednesday August 23, 8:00 P.M.
at the Watteau Room of the St. Regis Hotel:

 Sanford I. Weill   Citigroup, Inc.   Chairman and CEO
 Hendrick Verfaille  Monsanto Co.   President and CEO
 William B Harrison, Jr.  Chase Manhattan Corp.  Chairman and CEO
 Raymond V. Gilmartin  Merck and Company, Inc. Chairman and CEO
 Michael Armstrong  AT&T    Chairman and CEO
 Stephen M. Wolf  US Airways   Chairman and CEO
 Kenneth L. Lay   Enron Corp.   Chairman and CEO

Pending confirmation
 Douglas A. Warner III  J.P. Morgan   Chairman

According to Federico, if there is any late cancellation, no one will be
substituted. Also, there is a small possibility that
the dinner could take place in Washington, rather than N.Y., based on Fox's
meeting with President Clinton; they are still
working on the final agenda.

 Max and myself are working on the background information that you will need,
and will keep you posted of any
changes; best regards,  jaime____


We do not understand our VAR.  Can you please get us all the detailed reports
and component VAR reports that you can produce?

The sooner the better.

Phillip


Dear John:
You're opening my flood gates, and I'm going to refrain from getting entirely
upset.

Please read the attached letter, which is the one that we sent to Dunn last
week.  To wit:  according to the ISO's own calculations, Enron represents
FOUR TENTHS OF ONE PERCENT--that's four-tenths of one percent---of the
alleged "overcharges."  John, combined, the government sellers, including CA
munis have, by the ISOs own calculations, "overcharged" California by a
factor of ONE HUNDRED times what Enron has alleged to have "overcharged."
(See letter from Winters to Burton and Ose.)

So notes like this, are ill-informed.  I'm looking forward to Mr. Marcus and
others directing their invective at SMUD, Glendale, Pasadena, Burbank and
LADWP.  Nettie Hoge is now being quoted as saying, "well, it's not the
gouging.  that's not the problem.   it's the "profit motive" we've set up
that's the problem."  so munis are victims of a disease (profits) they can't
control.  everyone else is blood-sucking scum.  (in addition, please inform
Bill that Sempra's contract with DWR is a drop in the bucket compared to
others.  it's easy and perhaps even good politics to go after Sempra, but
getting Sempra ain't going to come within a light year of solving our DWR
contract problem.)

Sorry for the flame, but it's gotten extremely tiresome, and  it ain't
personal; but the emperor has no clothes, which will increasingly become
increasingly apparent.

all that aside, we've got other work that's more important, and i look
forward to continue working on it.

best,
jeff

	"V. John White" <vjw@cleanpower.org>
	07/17/2001 10:19 PM

		 To: <Jeff.Dasovich@enron.com>
		 cc:
		 Subject: Fw: Money in Politics Alert -- July 17, 2001

----- Original Message -----
From: "Bill Marcus" <bill@jbsenergy.com>
To: "Rachel and Barry (E-mail)" <orlins_bergman@msn.com>; "Andrews Family
(E-mail)" <andrews4549@cs.com>; "V. John White (E-mail)"
<vjw@cleanpower.org>; "Sara Myers (E-mail)" <ssmyers@worldnet.att.net>;
"Mike Florio (E-mail)" <mflorio@turn.org>; "Michael Shames (E-mail)"
<mshames@ucan.org>; "Eric Woychik (E-mail)" <estrategy@mindspring.com>;
"Bill Spratley (E-mail)" <wspratley@aol.com>; "Jan McFarland (E-mail)"
<jmcfarland@worldnet.att.net>; "Jim Lazar (E-mail)" <jimlazar@cheerful.com>;
"Jim Caldwell (E-mail)" <tgaljhc@aol.com>; "Savannah Blackwell (E-mail)"
<savannah_blackwell@sfbg.com>; "JA Savage (E-mail)" <honest@compuserve.com>;
"Theresa Mueller (E-mail)" <theresa_mueller@ci.sf.ca.us>; "Matt Freedman
(E-mail)" <freedman@turn.org>; "Jan Hamrin (E-mail)"
<jhamrin@resource-solutions.org>; "Chris Bowman (E-mail)"
<cbowman@sacbee.com>; "Lenny Goldberg (E-mail)" <lga@mother.com>
Cc: <gayatri@jbsenergy.com>; <jim@jbsenergy.com>; <jeff@jbsenergy.com>
Sent: Tuesday, July 17, 2001 1:37 PM
Subject: FW: Money in Politics Alert -- July 17, 2001

> This is ugly.  The generators who have been gouging us are now running ads
> blaming the energy crisis on Gray Davis and the Democratic Party.  And
> Enron's working with folks who are talking about "enviro-leftist
> propaganda".
>
> -----Original Message-----
> From: Center for Responsive Politics [mailto:hbailey@crp.org]
> Sent: Tuesday, July 17, 2001 9:18 AM
> To: Gene Coyle
> Subject: Money in Politics Alert -- July 17, 2001
>
>
> CENTER FOR RESPONSIVE POLITICS
> MONEY IN POLITICS ALERT
> Vol. 6, #24  JULY 17, 2001
> tel: 202-857-0044, fax: 202-857-7809
> email: info@crp.org, web: www.opensecrets.org
> http://www.opensecrets.org/alerts/v6/alertv6_24.asp
>
>
> Power Struggle:
> The Campaign Behind the Bush Energy Plan
>
> By Holly Bailey
>
> As Congress this week moves to take up major elements of President
> Bush's embattled energy policy, members of the administration,
> including Vice President Dick Cheney and Environmental Protection
> Agency chief Gail Norton, fanned out across the country yesterday
> in hopes of increasing national support for the plan.
>
> But public officials aren't the only ones waging a public relations
> battle over what has been described as a policy key not only
> to Bush's success but also to that of congressional Republicans
> in the upcoming 2002 elections.
>
> Corporate America, namely energy companies and trade associations
> representing everything from manufacturing companies to timber
> interests, also have invested plenty of time and money in the
> push for Bush's energy plan.
>
> At least three separate coalitions have launched TV, radio and
> print ads in recent weeks pushing for a new national energy policy,
> one that emphasizes the need to expand domestic oil and gas production,
> pipelines and power grids. Few of the groups mention the White
> House or Bush by name, but their policy wish list includes all
> the major elements proposed by the president.
>
> Perhaps the most prominent group is the Alliance for Energy and
> Economic Growth, a coalition of more than 400 groups including
> chambers of commerce, trade associations, energy companies and
> various other interest groups. Formed in mid-May, the Alliance's
> founding members include the American Gas Association ($630,025
> in soft money, PAC and individual contributions during 1999-2000;
> 55 percent to Republicans); the Edison Electric Institute ($739,378;
> 60 percent to Republicans); the National Mining Association ($508,650;
> 83 percent to Republicans); the Nuclear Energy Institute ($334,716;
> 71 percent to Republicans) and the U.S. Chamber of Commerce ($515,499;
> 94 percent to Republicans).
>
> The group's ads, which feature soft-focus photography shots including
> young children standing with their parents and sailors saluting
> a waving American flag, emphasize that our national security
> could be at risk without a new energy policy. The price tag for
> the Alliance's current ad campaign: at least $1 million, according
> to the Washington Post.
>
> Former Bush campaign advisers are the principals behind two other
> groups. The American Taxpayers Alliance, headed by GOP consultant
> Scott Reed, spent a reported $2 million last month running ads
> pinning blame for the California energy crisis on the state's
> Democratic governor Gray Davis. Reed, who also chaired Bob Dole's
> 1996 presidential race, won't disclose the donors or members
> of his group, but, according to Time magazine, one donor is Reliant
> Energy ($584,606; 87 percent to Republicans). Reliant is one
> of the companies accused by California officials of price gouging.
>
> Meanwhile, Ed Gillespie, a Bush adviser and Washington lobbyist
> whose clients include the energy giant Enron, heads the 21st
> Century Energy Project, a coalition formed to counter "enviro-leftist
> propaganda," according to a press release. The group's nine members
> include mainly conservative groups, led by the American Conservative
> Union ($112,500; all to the GOP). This week, the group reportedly
> is spending at least $500,000 on TV ads promoting the Bush energy
> plan.
>
>


Hi John, it's Paul.  Just showing your mom how to send you a message.


<<...>>            The WPO Ski TAG
<<...>>

Whistler/Blackcomb
British Colombia, Canada
    February 24-28, 2001

Let it Snow, Let it Snow, Let it Snow

....and that's just what it's doing at spectacular Whistler/Blackcomb in
British Colombia, Canada!  The world's top-ranked slopes already boast a
31-inch base with a foot of new powder and 200 open trails!  So dust off
those skis, check out your equipment and pack your bags for the WPO Ski TAG!

Enjoy wonderful days skiing the best slopes with expert guides and
instructors, evening socials in the delightful restaurants at the base of
the mountains peppered with educational sessions including speakers like
Doug Forseth, SVP of Whistler/Blackcomb Operations.  A special evening is
planned for Tuesday the 27th, a celebration of New Orleans' Fat Tuesday!

The best of all worlds is the time spent with family and fellow WPOers
comparing runs, trails, moguls and even the occasional fall.  The rigors of
the day, the friendships of old and new, and the laughter and relaxation of
the evenings are sure to be a highlight of this winter season.

For more information, please contact:

John and Kris Van Denburgh at
johnviii@aol.com <mailto:johnviii@aol.com> or by telephone at 602.997.2778.

You may also contact Nadia Ficara at WPO at
nficara@wpo.org <mailto:nficara@wpo.org> or by telephone at 703.684-4955.

Nadia Ficara
Event Manager
Tel:  703/684-4925
Fax: 703/684-4955


Jeanne, with Heather's assistance, please contact Jeff D. ASAP and get  the
details so that Enron (I believe the EES and EEMC entities are at issue, but
I do not know for sure which one) need to file their $1000 fee and their
registration update forms, as they are tardy.  They  will also owe SEction
394.25 standard service plan forms and must update their deposit bond by
Jan. 2, 2002.  Please help get this taken care of ASAP, Jeff considers it a
priority--and needless to say does not trust me to do it correctly.  Thanks,
Mike


First, thank you all for your hard work this last week, and in advance for the next weeks to come.
Second, suspend your preparation of Canada work reports for the time being.  I will let you know when to resume.  I simply do not have time to collate the report the next few weeks.
Third, be sure to let me know if you are having difficulties meeting deadlines, getting enough help, or the like.
Fourth, we will keep our lunch meetings as scheduled and will use the time to strategize on our current projects rather than reviewing the form etc.  We will get back to that after the workload settles down.

Thanks again.

Cordially,
Mary Cook
Enron North America Corp.
1400 Smith, 38th Floor, Legal
Houston, Texas 77002-7361
(713) 345-7732
(713) 646-3393 (fax)
mary.cook@enron.com


Please see attached Microsoft Word file for  Kudlow's latest commentary.

 - kudlow091301.doc


Once again, it's time to find out what you think about your work experience
at Enron and what can be done to make it better.  That's why Enron wants to
check your pulse.  In fact, we've changed the name of last year's "Excellence
Through Communication" employee survey to The Pulse.  This new name more
accurately captures the purpose of the survey.  Your diagnosis helps us
correct problem areas so we can continue to make Enron a great place to work.

Starting Monday, October 16, you will be asked to provide input into Enron
and your work environment.  We would like to have 100% participation across
Enron, because the only way to make things better is to know where we need to
make improvements.

Will be available:  Monday, October 16 - Friday, Oct. 27
Will be located at: survey.enron.com

There are a few things you should remember about The Pulse:

1. Your survey responses will be confidential.  You can complete your survey
at your desk via the intranet at survey.enron.com.  If you prefer, special
computer kiosks will be available in some of our larger offices and group
computer terminals will be available in smaller field offices.  We want to
provide you with the most comfortable environment possible, as your
participation is of vital importance to Enron.
2. We will respond actively to your comments.  We are going to do our best to
cure some of the current problems that exist and put into action preventative
processes that will help identify smaller problems before they become major
ones.  We may ask for your help in resolving some of the issues that are
collected in the survey -- your active role will help us identify the best
solutions.

In last year's survey, employees identified several problem areas regarding
internal communications and we've already acted on many of your
recommendations.  These are a few of the things we've accomplished or are
working on in direct response to your input:

* Educational/informational meetings, like Brown Bag Lunches and Executive
Floor Meetings
* Flex schedules
* Improved PRC process
* Various employee newsletters, like Enside and eBiz

So take a few minutes to check your pulse and tell us what you think and how
you feel about your job and about Enron.

We look forward to hearing from you.

Mark


Andy,

I am sending you a draft oof a proposal regarding national forum for top
finance practitioners and
academics. The idea came from a professor at Rice University who
has already received a commitment from a number
of most distinguished CFOs.

Please, read the outline and see if you would be interested in joining this
forum.
I shall be glad to help to arrange  a meeting with Prof. Ikenberry.

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 02/05/2001
10:22 AM ---------------------------

David Ikenberry <daveike@rice.edu> on 02/02/2001 06:10:02 PM
To: "vkamins@ennron.com" <vkamins@enron.com>
cc:
Subject:

It was great talking with you.

Dave
 - brochure.doc

***********************************
Prof. David Ikenberry
Jones Graduate School of Management
Rice University
713-348-5385


mike had to dig myself , the numbers i gave you are as follows:Physical crude
production 76 million bbls per day,products  production assuming no loss also
76 million bbls. The traded market crude physical 35 million bbls and
financial 120 million bbls. Products 20 million bbls an financially 80
million bbls. assuming 20 dollar/ bbl crude and 30 dollar/bbl  products if
you need a value for the market.


So do we have a special agreement in place for the full requirements gas deal?  I think that you did that deal before I came to the gas desk.  How can I get a copy of the penalty language?

Thanks,

Kim

 -----Original Message-----
From: 	Foster, Chris H.
Sent:	Wednesday, November 28, 2001 1:48 PM
To:	Ward, Kim S (Houston)
Subject:	RE: Citizens

The contract provides for a Material Adverse Change if our credit rating goes below BBB- which it has.  This is a triggering event.  When this occurs they can initiate the process moving to terminate the agreement.

C

 -----Original Message-----
From: 	Ward, Kim S (Houston)
Sent:	Wednesday, November 28, 2001 11:19 AM
To:	Foster, Chris H.
Subject:	RE: Citizens

why are they doing this?

 -----Original Message-----
From: 	Foster, Chris H.
Sent:	Wednesday, November 28, 2001 1:15 PM
To:	Ward, Kim S (Houston)
Cc:	'sbreen@czn.com'
Subject:	Citizens

Citizens is initiating the process to terminate our agreement.  They will likely recall the capacity on TW and terminate our agency relationships with EP and TW.  They want to know if we are continuing to deliver gas.  Can you call Sean and tell him?

C


Clay,

Per our call, I am giving below a brief account of what happened at site
yesterday:

At 02:33 hours on 9th April 2001, a failure occurred while both the 32 inch
lines were under pneumatic testing.
The pressure at the time was 23.8 BARg; ultimate test pressure planned was
25.2 BARg.
The event appears to have occurred between bent 4 and bent 1 (at the seaward
end of the jetty).
No personnel were at risk; the planning and safety procedures were being
observed.
A total of thirty personnel were on duty, involved in the test at the time of
occurrence and well away from the point of failure; an exclusion zone of 850
metres was in effect as planned.

Initial Assessment:
Extensive impact bents 4 to 1; all pipework supports and plinths in this area
are a loss.
No visual evidence of impact  to unloading arms, or control building at the
jetty head.
No immediate evidence of impact on jetty superstructure.
Internal inspection of pipelines from point of failure to shore is underway.

Actions taken:
Response team assigned.
Insurance assessors notified and due to reach site today.
Design and certain vendor assessments initiated.
Assessment of jetty structure initiated; detailed check of all facilities
beyond the jetty to be conducted.

Most of the above is based on what Lingtec (the LNG Construction Contractor)
has reported to DPC.  Please appreciate that these reports are preliminary.
Lingtec is expected to make a detailed update during this week.

Should you have any further queries, please do not hesitate to call me.

Best regards,
Shubh

Office  91-22-653 4011  Ext. 128
Home  91-22-605 7705
Cellphone 91-98210 96594


To the Compaq Board:

As you probably know by now, yesterday we concluded on a new three year
contract. I would like to extend my personal thanks to each of you for the
confidence and the support. While I can not guarantee results, I can promise
that no one will work harder nor with more integrity at insuring Compaq's
continue success.

I would also like to extend my deepest personal  thanks to Larry for his
effort, time and creativity. He was a true professional in every regard.

Again thanks and now on to the fourth quarter,

Michael


Sean - is this anything we need to follow up on?
----- Forwarded by Steven J Kean/NA/Enron on 02/28/2001 02:26 PM -----

	Sherri Sera
	02/28/2001 01:58 PM

		 To: Mark Frevert/NA/Enron, Steven J Kean/NA/Enron@Enron
		 cc: Nicki Daw/NA/Enron, Maureen McVicker/NA/Enron@Enron
		 Subject: Nigeria Contract support

Mark and Steve, sorry to bother you with this, but I'm at a loss.  This guy
(Jim Cofield) called me on my cell phone last night about 7:00 p.m. to get my
e-mail address.  He asked that I take a look at his e-mail in the morning and
route it to the appropriate person within Enron.

The ".jpg" files below have no information in them, but the ".doc" file is a
14 page document with numerous correspondence from Mary Beth Cahill, former
director in the White House Office for Public Liaison, to Mr. Cofield
regarding a trip to Nigeria that he supposedly accompanied President Clinton
on several months ago; followed by a number of "proprietary information
documents" that mean absolutely nothing to me; followed by an overview of
Nigeria's electrical power situation; etc....The best I can tell, they are
trying to get Enron to bid on some project in Nigeria.

Since this e-mail is copied to the Vice President of the United States in
addition to several ambassadors, I thought it might need attention.  If you
can figure it out, please let me know how to proceed.  Thanks, SRS
---------------------- Forwarded by Sherri Sera/Corp/Enron on 02/28/2001
01:44 PM ---------------------------

"Jim Cofield" <jcofield@home.com> on 02/27/2001 07:06:11 PM
To: "Sherri Sera" <sherri.sera@enron.com>
cc: "Richard Cheney" <vice.president@whitehouse.gov>, "Ambassador Dele Cole"
<bedeos2000@yahoo.com>, "Ambassador Jibril Aminu" <bedeos2000@yahoo.com>,
"Ambassador Li Zhaoxing" <webmaster@china-embassy.org>

Subject: Nigeria Contract support

[IMAGE]

?

?

Jim E. Cofield

World Headquarters

Cofield Building

1016-22nd Street, Suite 200-500

Newport News, VA 23607-5316???????

Telephone? 757 223-0843

Fax: 757 223-0844

jcofield@home.com (email)

WebSite: http://cofield.my.treeway.com

"Making the World a Safer Place"

It is always an Honor to Serve and Support

?

?
 - image001.jpg
 - image002.jpg
 - image001.jpg
 - image002.jpg
 - Nigeria-Best8.doc


Mary:

Here is the list on telecom companies.  Let me know how I can help.

Regards,

Mark
----- Forwarded by Mark E Haedicke/HOU/ECT on 08/14/2000 01:57 PM -----

	Alan Aronowitz
	08/14/2000 11:25 AM

		 To: Mark E Haedicke/HOU/ECT@ECT
		 cc:
		 Subject: Top 10 Bandwidth Counterparties

At your request, see below. Certainly, I can get you contact names if you
need them.

Alan
----- Forwarded by Alan Aronowitz/HOU/ECT on 08/14/2000 11:21 AM -----

	Jay Hawthorn@ENRON COMMUNICATIONS
	08/14/2000 08:24 AM

		 To: Alan Aronowitz/HOU/ECT@ECT
		 cc:
		 Subject: Top 10 Bandwidth Counterparties

Alan,

Here's a good start on the list of the most likely of the telecom guys to be
transacting under the Master (or who have already transacted).  With that,
I'd say that ISDA should initially target this group in its membership.  (You
asked for 10, but I thought of 12 -- you can cut two if you like.)

GENUiTY
Broadwing
MCI WorldCom
Level (3)
Global Crossing
360networks
Touch America (Montana Power -- might already understand ISDA from power
trading side)
Cable & Wireless
Universal Access
AT&T
Teleglobe
Qwest

Good to hear from you, and keep in touch!  Things are really moving up here,
and we couldn't have done it without all your help and guidance.

Let me know if I can help with anything else.

Best regards,
Jay
--
James F. Hawthorn
Enron Broadband Services
Global Bandwidth Risk Management
+1 713 853 7606 Telephone
+1 713 646 8795 Facsimile
<mailto:jay_hawthorn@enron.net>


Susan --

When we get to a point to make comments, please let me know.

Jim

-----Original Message-----
From: Lindberg, Susan
Sent: Tuesday, August 28, 2001 2:58 PM
To: Steffes, James D.; Sager, Elizabeth
Subject: FW: Conference Call on FERC NOPR on Revised Public Utility
FilingRequirements- September 7th

Jim, I will be participating in this.  Elizabeth, do you want to be on the call also?

-----Original Message-----
From: Jackie Gallagher [mailto:JGallagher@epsa.org]
Sent: Tuesday, August 28, 2001 2:45 PM
To: acomnes@enron.com; Hawkins, Bernadette; Nersesian, Carin; Nicolay,
Christi L.; Fulton, Donna; Scheuer, Janelle; jhartso@enron.com; Shelk,
John; jsteffe@enron.com; Noske, Linda J.; Robertson, Linda; Alvarez,
Ray; Shapiro, Richard; Novosel, Sarah; Mara, Susan; Lindberg, Susan;
Hoatson, Tom
Subject: Conference Call on FERC NOPR on Revised Public Utility
FilingRequirements- September 7th

MEMORANDUM

TO: Regulatory Affairs Committee
       Power Marketers Working Group

FROM: Jim Steffes, Regulatory Affairs Committee Chair
            Bob Reilley, Power Marketers Working Group Chair
            Julie Simon, Vice President of Policy

DATE: August 28, 2001

RE: Conference Call on FERC NOPR on Revised Public Utility
      Filing Requirements
      ?Friday, September 7th at 2:30 p.m.

On July 26th, FERC issued a Notice of Proposed Rulemaking (NOPR) proposing to replace its current filing requirements for short- and long-term service agreements with an electronically-filed Index of Customers, among other changes.  Comments are due to FERC on or before October 5th.  On August 8th, EPSA sent out a memo briefly summarizing the Order and identifying some possible issues of concern.  If you have any additional issues, please forward them to Jackie Gallagher at jgallagher@epsa.org.

We will hold a conference call on Friday, September 7th at 2:30 p.m. to discuss issues for possible comments on the NOPR.  To access the call, dial 1-800-937-6563 and ask for the Julie Simon/EPSA call.  In the meantime, if you have any questions or comments, please contact Jackie Gallagher at 202-628-8200.


This list from Dave Barry is funny and all too true.............Lynda L
 -----Original Message-----
From: 	Becky Davis <becky_d@swbell.net>@ENRON
Sent:	Tuesday, January 15, 2002 1:36 PM
To:	Wotiz, Sandy; Suzy Brennan; Susan Fontana; PJNJohnson@aol.com; Laferla, Lynda ; Laurie Wright; Jomie Heftye; Jane.Lavery@dynegy.com; Jane Dooley
Subject:	Fw: Dave's list...

----- Original Message -----
From: Grayson Davis
To: Becky Davis
Sent: Tuesday, January 15, 2002 12:54 PM
Subject: Fw: Dave's list...

----- Original Message -----
From: David Dougan
To: Hal  Clark  ; Grayson  Davis  ; Gary  Abott  ; Lou  McCormick  ; Lloyd Brown
Sent: Tuesday, January 15, 2002 12:02 PM
Subject: Fw: Dave's list...
I am in complete agreement with  Dave.............
Subject: Dave's list...
 19 THINGS THAT IT  TOOK ME 50 YEARS TO LEARN by Dave Barry
 1. Never under any  circumstances take a sleeping pill and a laxative on
the same night.
 2. If you had to identify, in one word, the reason why the human race  has
 not achieved, and never will achieve, its full potential, that  word would
be "meetings."
 3. There is a very fine line  between "hobby" and "mental illness."
 4. People who want to share  their religious views with you almost never
want you to share yours  with them.
 5. And when God, who created the entire universe with all  of its glories,
 decides to deliver a message to humanity, He WILL NOT  use, As His
 messenger, a person on cable TV with a bad hairstyle.
 6. You should not confuse your career with your life.
 7. No  matter what happens, somebody will find a way to take it too
 seriously.
 8. When trouble arises and things look bad, there  is always one Individual
 who perceives a solution and is willing to  take command. Very often, that
 individual is crazy.
 9.  Nobody cares if you cannot dance well. Just get up and dance.
 10.  Never lick a steak knife.
 11. Take out the fortune before you eat the  cookie.
 12. The most powerful force in the universe is gossip.
 13. You will never find anybody who can give you a clear and  compelling
 reason why we observe daylight savings time.
 14.  You should never say anything to a woman that even remotely suggests
 that you think she is pregnant unless you can see an actual baby  emerging
 from her at that moment.
 15. There comes a time  when you should stop expecting other people to make
a big deal about your  birthday. That time is age eleven.
16. The one thing that unites all human  beings, regardless of age, gender,
 religion, economic status or ethnic  background, is that, deep down inside,
 we ALL believe that we are  above average drivers.
 17. The main accomplishment of almost all  organized protests is to annoy
 people who are not in them.
18. A  person who is nice to you, but rude to the waiter, is not a nice person.
 19. Your friends love you anyway.


Location Houston,
Sorry about the meeting change.  Mike McConnell just scheduled an IT 2000
meeting.


Can we swap days with Charlotte and go tomorrow? We need her to pick up
Michael if we are going to go together.

ckm

"Neil Mann" <nmann@erac.com> on 05/15/2001 08:18:49 AM
Please respond to <nmann@erac.com>
To: "C. Kay Mann \(E-mail\)" <Kay.Mann@Enron.com>
cc:

Subject: Michael

Sharon's phone number is 713-780-4459. She offered the following times to
meet:

Wed 5/16 @ 5pm
Thurs 5/17 @ 9:30am
Wed 5/23 @ 10am

Her e-mail is rseals@pdq.com


Tom,
Hi, I spoke to you earlier today about the question you had regarding desk to desk trades.  I want to make sure that I answer your question completely and accurately.  If possible, would you mind e-mailing your exact questions and concerns so that I can gather all the information that you need?  Once I receive your e-mail, I will speak to the proper people to get you an answer as quickly as possible.  Thanks for your assistance.

Ashu Tewari
x5-3558


Dear Mr. Fujita:

Thank you for you interest in Enron. I shall be honored if you visit Enron
and I shall invite other employees of the company to the meeting.

Please, call my assistant, Shirley Crenshaw (713 853 5290) to discuss the
exact time of your visit. She will be trying to reach you from our end.

The copy right for the book belongs to the RISK magazine. I shall give you
the contact at the company
with whom you can discuss the Japanese version issues.

Sincerely,

Vince Kaminski

Masayuki Fujita <mfujita@mri.co.jp> on 03/31/2000 08:36:00 AM
To: vkamins@enron.com
cc: Eugenio Perez <Eugenio.Perez@enron.com>
Subject: A visit

Professor Vincent Kaminski
Vice President of Research
Enron Corp.

Dear Professor Kaminski

    I , Masayuki Fujita was the only Japanese attendee of the Energy
Derivatives seminar
in Houston last December and a member of Japanese consultation firm:
Mitsubishi Research
Institute, Inc. I would be very honored if you can meet with me 17 or 18
April after
attending Energy Trading Summit in 12th-14th. As you know, Japanese
electricity trading is
on the way of deregulation beneficial to the consumers from a long stage of
the nine major
companies' regional monopoly. We are giving a hand to help the Ministry and
industry to
find the right course of them. I and my colleague Yamada, who will attend Risk
Publications Monte Calro seminar in Four Seasons Hotel, would like to visit
you and your
company for studying the sophisticated risk management at Enron. In return,
we may give
you the information about recent institutional progress and major electricity
companies
response in Japan.

    We are now personally translating your book "Managing Energy Price Risk"
second
edition and wondering if you have not given the right to publish in Japanese
and nay give
us the chance to help you introduce modern technology to manage energy risk
in the
Japanese energy industry.

    I do not hope Japanese English power prevent me to pass my sincerity to
you and I can
visit you soon.

    Best regards,

Masayuki Fujita
Principal Financial Engineer
Financial Technologies Section
Mitsubishi Research Institute, Inc.
3-6 Otemachi 2-chome, Chiyoda-ku
Tokyo 100-8141
Japan
Tel +81-3-3277-0582
Fax +81-3-3277-0521


CALENDAR ENTRY:	APPOINTMENT

Description:
	Ava @ Hyatt / Enron @ A Glance

Date:		10/25/2000
Time:		7:00 AM - 8:00 AM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


-----Original Message-----
From: 	Hanagriff, Richard
Sent:	Thursday, June 14, 2001 4:28 PM
To:	Schoolcraft, Darrell
Subject:	TW summary


The State Consultants' Stock Buys Questioned Energy: State official urges
conflict of interest probe into purchases of shares in power firms.
Los Angeles Times, 07/17/01
UK: LME disciplines Enron Metals, accepts settlememt.
Reuters English News Service, 07/17/01
LME Fines Enron $264,000 for `Serious' Rule Breaches (Update2)
Bloomberg, 07/17/01
Communications Company Terremark Issues Warns Investors about Losses
KRTBN Knight-Ridder Tribune Business News: The Miami Herald - Florida,
07/17/01
Calif Senator: Enron Contempt Charge Seen Dropped Tue
Dow Jones Energy Service, 07/16/01
SMARTMONEY.COM: One Year and Counting (Their Losses)
Dow Jones News Service, 07/16/01
AReM Says Sweet Bailout Deal for Edison Eliminates Competitors, Rebuilds
Monopoly and Keeps Consumers Hostage
PR Newswire, 07/16/01
Dutch Power Mkt Pressure On Watchdog, Generators, Mounts
Dow Jones Energy Service, 07/16/01
U.S. Northwest Power Claims Put Utilities at Odds, Paper Says
Bloomberg, 07/16/01
India Rejects Enron Proposal for NTPC to Buy Dabhol, Paper Says
Bloomberg, 07/16/01

California; Metro Desk
The State Consultants' Stock Buys Questioned Energy: State official urges
conflict of interest probe into purchases of shares in power firms.
JEFFREY L. RABIN; ERIC BAILEY
TIMES STAFF WRITERS

07/17/2001
Los Angeles Times
Home Edition
B-7
Copyright 2001 / The Times Mirror Company

Secretary of State Bill Jones on Monday urged California's attorney general
to investigate possible conflict of interest violations by consultants hired
to help the Davis administration navigate the energy crisis.
Jones, a Republican candidate for governor, said at a Los Angeles news
conference that Atty. Gen. Bill Lockyer and the state Fair Political
Practices Commission should determine whether seven of the consultants have
conflicts of interest because they own stock in one or more energy companies.
He also asked the state's chief law enforcement officer to immediately
determine whether the governor's office violated state law by exempting 21 of
the 45 consultants from financial disclosure requirements.
"I am gravely concerned that a cloud of illegality and collusion exists at
the highest level of our state government due to the actions and the
conscious policy of secrecy of Gov. Davis," Jones said.
That brought a sharp retort from the governor's spokesman, Steve Maviglio,
who attacked Jones for engaging in campaign politics.
"The secretary of state has a five-person team bankrolled by the taxpayers
attempting to dig up dirt for political reasons," Maviglio charged.
"This is politics pure and simple being played by a candidate desperate to
get his name in the paper," Maviglio said. If there are any violations of the
law, he added, "they're going to be addressed."
The secretary of state's entry into the energy controversy poses yet another
headache for Davis as he prepares to run for a second term next year.
Already, the GOP and some power producers have begun airing commercials
critical of Davis' handling of the power crunch, forcing the governor to dip
into his own campaign funds to fight back.
Jones, as the state's chief elections officer, contends that his concerns are
not just political. He noted that he appoints one of the five members of the
Fair Political Practices Commission, which enforces campaign finance and
conflict of interest laws.
Among other things, Jones questioned why Vikram Budhraja, head of the
Electric Power Group, a Pasadena energy consulting firm, bought stock in
Edison International and Dynegy Corp. in the days before he went to work for
the state.
Budhraja was hired under a $6.2-million contract between his firm and the
state Department of Water Resources that was signed on Jan. 18. Like two
dozens of the consultants hired by the state, he did not complete a financial
disclosure statement until last week, more than six months after he went to
work for the department, which now buys power for the state's three largest
utilities.
The financial disclosure statement filed by Budhraja last Thursday shows that
he bought between $10,000 and $100,000 worth of Dynegy stock on Jan. 11. Six
days later, he bought between $10,000 and $100,000 of Edison stock.
That was the same day that Davis declared a state of emergency because of the
energy crisis and ordered the Department of Water Resources to begin buying
power on behalf of the state's financially troubled major utilities.
On Jan. 22, Budhraja again bought between $10,000 and $100,000 of Edison
stock. On his disclosure statement, he indicated that he began work for the
state Jan. 25 and sold the stock on Jan. 29--the first opportunity he had to
divest his holdings.
Jones told reporters that Budhraja's investments in Edison grew by 44% to
47%, while his Dynegy investment increased 28% in that brief period.
Budhraja was also on retainer as a consultant to Edison International,
earning more than $100,000 in the year before becoming a contractor for the
state.
Maviglio said Budhraja wrote a letter to DWR Deputy Director Ray Hart saying
he had no dealings with Edison International. He also was not involved in any
long-term contracting with Edison.
Any profits Budhraja made from the stock are irrelevant because the stock was
sold by the time he was on the job, Maviglio said.
Another consultant, Bernard Barretto, who describes himself as an energy
trader/scheduler for the state, disclosed last week that he purchased stock
in power producer Enron Corp. But no date or amount of the purchase was
listed.
Financial disclosure forms filed last week by five other consultants show
they all own stock in Calpine Corp., a major California-based power
wholesaler.
Energy trader Elaine L. Griffin bought between $10,000 and $100,000 worth of
Calpine stock on Feb. 1. Her contract with the state began Feb. 20. Griffin's
newly completed economic disclosure statement does not show her selling the
stock. Herman Leung, who went to work as an electricity scheduler in March,
bought between $2,000 and $10,000 worth of Calpine stock on Jan. 22.
Schedulers William F. Mead, Peggy Cheng and Constantine Louie also disclosed
that they own stock in Calpine. Mead, in fact, said his holdings ranged
between $100,000 and $1 million. But their forms contain an important
omission: The consultants do not say when they purchased the shares.
Oscar Hidalgo, a Water Resources spokesman, said the agency's attorney is
reviewing all the past purchases to ensure that no laws were violated by
contractors buying power or negotiating long-term contracts with companies in
which they held stock.
"We're reviewing all that to see if [there were] any problems with any past
negotiations," Hidalgo said. "We're looking at all the records in past buys
or trades so we understand who exactly did what."
He said it's a "very big task" that will take weeks to complete.
In the meantime, those contractors who have disclosed stock ownership have
been recused from working with generators in which they have a financial
interest.
The governor's spokesman said several of the contractors who own stock in
Calpine are not traders, and thus do not have direct dealings with the
company.
"If you own Calpine stock and aren't doing any business with Calpine, then
you're fine," Maviglio said.
Calpine is one of a number of firms that negotiated long-term contracts with
the state and that have come under fire from critics who say they will saddle
consumers with artificially high electricity costs for years to come.
For weeks, Jones has been sharply critical of the administration's failure to
require its consultants to file conflict of interest forms, which must be
completed within 30 days of a person starting work.
The governor's spokesman said the administration was told by the state's
political watchdog agency that only consultants serving in a staff capacity
or participating in decisions must file the forms.
As a result, he said, only two dozen of the 45 consultants were required to
complete the paperwork--most of them "hastily and clumsily" prepared last
week, according to the secretary of state.
Two of those who have not filed are Wall Street executives Joseph Fichera and
Michael Hoffman, key advisors to Davis on his plans to rescue California's
debt-ridden utilities. In that role, according to their contract, they could
make millions.
Maviglio said the two men, who have done extensive work for private energy
companies, are "squeaky clean," but he would not elaborate.

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

UK: LME disciplines Enron Metals, accepts settlememt.

07/17/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, July 17 (Reuters) - The London Metal Exchange (LME) said on Tuesday
it had taken disciplinary action against Enron Metals Ltd (EML) for breaches
of its regulations.
In a notice, the LME said EML had persistently failed to deliver warrants in
time and failed to input trades into the matching system.
"Enron Metals Ltd submitted an offer of settlement to the LME, in which it
admitted the charge and agreed to pay a fine of 190,000 pounds," the Exchange
said.
The LME added that EML had cooperated throughout the dsiciplinary process so
its enforcement committee had agreed to ratify the settlement.
EML is one of the LME's 12 ring-dealing members, which trade on the
exchange's open-outcry floor. Its metals trading operation, the former MG
Plc, is a unit of U.S.-based energy giant Enron Corp . Enron acqired MG in
May 2000.
RULES BREACHED
The LME said that between August 1999 and February 2001 EML had persistently
failed to ensure that warrants needed to settle its exchange contracts were
delivered to the London Clearing House (LCH) by 1100 local.
A warrant is similar to a bearer bond, in that it denotes ownership of
LME-registered metal stored in recognised warehouses.
These failures to deliver on time jeopardised confidence in the LME's
delivery system, and the exchange's committee concluded that EML's systems
for ensuring compliance with rules and regulations had been seriously
inadequate.
Also, between May 2000 and February 2001, EML persistently failed to input
trades into the LME's matching system, where trades are allocated by the
clearing house.
Concerning both the inputting errors and the late deliveries of warrants, EML
frequently provided explanations that were inadequate.
"The LME recognizes that since EML became part of the Enron Group, greater
resources have been devoted to improving systems and procedures. EML has also
sought to reassure the LME that it is commited to compliance with the LME
rules and regulations," the LME added.

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

LME Fines Enron $264,000 for `Serious' Rule Breaches (Update2)
2001-07-17 08:06 (New York)

LME Fines Enron $264,000 for `Serious' Rule Breaches (Update2)

     (Adds daily LME volume in fifth paragraph, Enron statement
sixth-eighth.)

     London, July 17 (Bloomberg) -- The London Metal Exchange
said it fined Enron Corp. 190,000 British pounds ($264,000) for
``seriously inadequate'' compliance with trading rules that
threatened to undermine confidence in the largest metals
market.
     That's the biggest fine levied by the LME other than those
stemming from the 1996 Sumitomo Corp. copper trading scandal,
said Jo Holmes, an exchange spokeswoman. LME fined banks as
much as 6.5 million pounds after a rogue copper trader lost
Sumitomo $2.6 billion.
     Houston-based Enron, the world's largest energy trader and
one of the largest LME traders, violated exchange rules over an
18-month period through late delivery of warrants, documents
that confirm the completion of a metals sale, the LME said in a
statement. Enron failed to rectify its procedures despite
repeated warnings, the exchange said.
     ``By persistently failing to make delivery on time and
failing to take swift action to remedy underlying problems,
(Enron) jeopardized confidence in the LME delivery mechanism,''
the statement said.
      Enron's failures to comply ``were repeatedly brought to
the attention'' of the company between last May and February of
this year, said the LME, whose transactions are worth about $10
billion a day, Holmes said.

                         Admission

     Enron admitted rules breaches in a statement. The
violations stemmed from its acquisition last May of MG Plc, the
world's largest copper-trading company, for $445 million, which
expanded the natural gas and electricity trader's metals
business.
     MG's back-office systems required ``substantial
adjustment'' to comply with Enron's standards, the company's
statement said.
     ``Enron Metals has cooperated fully throughout this period
with the LME and has taken steps to remedy the situation,'' the
company said.

Communications Company Terremark Issues Warns Investors about Losses
Beatrice E. Garcia

07/17/2001
KRTBN Knight-Ridder Tribune Business News: The Miami Herald - Florida
Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World
Reporter (TM)

Terremark Worldwide, which last month opened the long-awaited, highly touted
NAP of the Americas in downtown Miami, lost $103.9 million for its fiscal
year ended March 31, warned investors about its need to raise additional
capital and noted that its auditors have concerns about the company's ability
to its operations.
In a report issued July 9 and included in Terremark's filings with the
Securities and Exchange Commission, the company's independent auditors,
PricewaterhouseCoopers in Fort Lauderdale, said that Terremark "has suffered
recurring losses from operations and has a net liquidity deficit that raise
substantial doubt about its ability to continue as a going concern."
However, Manny Medina, Terremark's chairman and CEO, remains confident that
the investors that have backed him will continue to do so. He said he has
always raised the financing as he needs it, rather than stockpiling capital
in the bank. That's the way he said he has been doing business for 20 years.
Medina said the going-concern letter from the auditors is "just a black and
white" issue. "You have to have your business plan funded for the next 12
months or you get a going-concern letter from the auditors."
A going-concern letter does indicate that a company needs additional
financing, said accounting sources. Yet, issuing such a letter is not a
practice that auditors take lightly, they added.
In documents filed Monday with the SEC, Terremark noted "there can be no
assurance that any financing will be available ... on acceptable terms or at
all."
Medina said Terremark's ability to finish this project has been questioned
from day one. "But the building is finished, the customers are signed up and
the traffic is running."
Medina was referring to the Technology Center of the Americas where the NAP
is housed. Terremark oversaw the construction of that facility in downtown
Miami. Terremark put in place a $109 million debt and equity financing
package late last year to finance the construction.
Terremark has 34 binding contracts from various major firms including AOL
Time Warner, Deutsche Telekom, Emergia, Enron, EPIK Communications, Global
Crossing, Qwest, SBC Internet Services and FPL Fibernet, to use the NAP.
The company believes the revenue from NAP's customers will allow to fund this
data exchange point.
Sandra Gonzalez-Levy, Terremark's senior vice president for corporate
communications, noted that the interim NAP, which Terremark opened at the end
of December, started producing revenue immediately. The company reported
revenue of $252,906 from the interim NAP for the quarter ended March 31.
Gonzalez-Levy said the additional capital would be needed to carry out the
company's plans to build additional data centers, smaller versions of the NAP
in Miami, in Latin America and the Far East.
Benjamin Finzi, executive vice president of EPIK Communications and head of
the consortium of more than 100 telecom firms which supported the building of
the NAP in Miami, said he hadn't seen Terremark's actual financial
statements.
However, Finzi said that in the past, Medina has assured consortium members
that his investors would continue to back the financing of the NAP and its
continued operations.
Other sources close to Terremark said that Medina has always preferred to
raise the capital he needs in the capital markets because it has greater
credibility. But they believe Medina could tap his investors, some in the Far
East and others in the Middle East, to continue funding this project rather
than let it fail.
Yet, the financing market for telecom companies remains difficult.
Many firms, including possible tenants for the NAP, have pulled back their
expansion and cut back operations because they don't have the capital and
they don't sufficient revenues at this point to their day-to-day business.
One investment banker who follows the company noted that the auditor's letter
would make it more difficult for Terremark to raise the capital it needs to
fund its expansion into Latin America and the Far East.
Terremark said it hopes to refinance at more favorable terms for the TECOTA
financing package. The financing includes $61 million in debt and $48 million
in equity.
During the latter part of its fiscal year, the company placed $40 million in
convertible debt via a private placement.
The net loss from operations for the fiscal year was $21.3 million compared
to $6 million in the 2000 fiscal year. Revenue for the year rose to $40.1
million from $15.4 million.
Terremark's fiscal-year loss of $103.9 million includes a one-time charge of
$61.1 million for discontinued operations, primarily due to the write-off of
goodwill for operations sold.
Businesses shed in the past year include Telecom Routing Exchange Developers
(T-Rex), Spectrum Communications, which had a presence in Argentina, Brazil,
Peru and Chile, and its unified messaging and faxing operations in China.
In the past year, Terremark has been transforming itself from one of South
Florida's major real estate developers to an Internet infrastructure company
providing networking and managed services. The company has said it will sell
businesses that don't fit with this strategy.
Terremark said it has a $17.2 million contract to sell Fortune House II, a
condominium/hotel project in Fort Lauderdale Beach. It's scheduled to close
July 25.
The company initially had a contract for $18.5 million to sell this project,
but it fell through, Gonzalez-Levy said.
For the fiscal quarter ended March 31, Terremark reported revenue of $15.9
million with a net loss of $71.7 million compared to revenues of $14.5
million and a net loss of $15 million for the March 2000 quarter. News
Service edited version:

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

Calif Senator: Enron Contempt Charge Seen Dropped Tue

07/16/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

LOS ANGELES -(Dow Jones)- A California Senate committee is likely to drop a
contempt charge against Enron Corp. (ENE) Tuesday because the company is
close to agreeing to provide information for an investigation into wholesale
electricity prices, Sen. Joe Dunn, D-Santa Ana, said late Monday.
"There has been a dramatic change, and I am optimistic that by noon (Tuesday)
there will be a resolution with Enron," said Dunn, who chairs the Senate
Select Committee to Investigate Market Manipulation.
The committee voted last week to forward a contempt charge to the full Senate
because Enron refused to provide certain financial documents and sign the
committee's version of a confidentiality agreement. If the full Senate voted
to hold Enron in contempt, it could issue punishments including hefty fines
and incarceration of executives. - - 17/07/01 00-46G
The committee also voted last week to drop its contempt charge at any time
before a full Senate vote if Enron agreed to meet the committee's requests.
"Enron has chosen to intimate to us that they will comply with our demands.
They have asked us for the ability to preserve certain objections. There's a
possibility we may be sued by other market participants, and if so, Enron
wants to preserve its opportunities to pursue objections at that time," Dunn
said.
Enron filed a lawsuit last week to stop the committee's subpoena of financial
records, and a company attorney said during hearings that Enron was likely to
contest the contempt charge as well.
In talks Monday, however, Enron mentioned the possibility of dropping the
lawsuit, Dunn said, which is not a requirement to the committee's dropping
the contempt charge.
No-one at Enron could be reached immediately for comment.
The documents sought by the price manipulation committee include information
on bidding and pricing behavior in the state's electricity markets. The
committee originally was poised to cite seven other electricity generators
for contempt, but all eventually agreed to provide the requested information.
-By Jessica Berthold, Dow Jones Newswires; 310-962-2843;
jessica.berthold@dowjones.com -0- 17/07/01 01-32G

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

SMARTMONEY.COM: One Year and Counting (Their Losses)
By Matthew Goldstein

07/16/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Of SMARTMONEY.COM

IF YOU'RE AN INVESTOR, no one needs to tell you how much things have changed
since this time last year. On July 16, 2000, the Dow Jones Industrial Average
stood at 10812, while the Nasdaq Composite checked in at 4246. Now, they're
at 10473 and 2029, respectively.
It's been a rough stretch for just about everyone - including the members of
the SmartMoney.com Investor Panel, which we inaugurated just over a year ago.
So rough, in fact, that we've lost contact with five of our 15 panel members.
Has the market's turmoil driven them to the sidelines? Possibly. Have they
fled stock investing altogether? We hope not. But if the sharp fall-off in
online stock-trading activity is any indication, there are plenty of
investors who, like our wayward panel members, are missing in action.
The panelists we were able to reach are using the technology-stock meltdown
as an opportunity to reassess their investment strategies and goals. Last
summer, most of their portfolios were still tilted heavily toward tech. But
after seeing countless former highfliers lose half their value or more over
the past year, the majority of our panel members are praying at the altar of
market diversification. Says Lisa Frischhertz, a New Orleans stay-at-home
mother who last year described herself as an aggressive growth investor: "I
have diversified as much as possible by looking for stocks in varied sectors
and not just in technology. I have also bought two REITs [real estate
investment trusts] for their high-dividend yields, which I probably would not
have considered in the past."
Indeed, several panel members have sold shares in companies like data-storage
giant EMC (EMC), telecommunications company Lucent Technologies (LU) and
computer-hardware titan Sun Microsystems (SUNW), in favor of energy, utility,
financial, retail and health-care stocks. Some of their favorites: power
companies Enron (ENE) and Xcel Energy (XEL), credit-card giant MBNA (KRB),
medical-testing firm Quest Diagnostics (DGX) and specialty retailer Chico's
FAS (CHS). Jack Sulser, a retired U.S. foreign-service officer and one of our
most active panel members this year, has even added the stock of a stodgy
trucking company - Werner Enterprises (WERN) - to his holdings.
But it isn't just the buying habits of our panel members that have changed
during the past year; their expectations are different as well. With the
Standard & Poor's 500's giddy 20% to 30% annual returns in the late 1990s a
now distant memory, our panelists generally say they'd be pleased to end this
year modestly in the black (most of them lost money last year). Still, our
roundtable doesn't expect the market to start a sustained rally until the
fourth quarter at the earliest. "Until some key companies start making their
quarters, we are going to move sideways," says Kent Newsome, a Houston
lawyer. "I don't see any significant upside for the rest of the year."
Another area of agreement: Most panelists have taken a rather dim view of
Wall Street analysts, especially the ones who kept their Buy ratings on
technology stocks throughout the Nasdaq collapse. Panel members generally
applaud the efforts by securities regulators and politicians to make analysts
more accountable to the public. But several panelists also say investors need
to ask themselves why they followed the analysts over the cliff so blindly.
Says Rey Pana, a retired IBM executive: "Let the buyer beware." If you'd like
to join the Smartmoney.com Investor Panel, send an email to Staff Editor
Matthew Goldstein. Include your occupation, a daytime and evening telephone
number, a brief summary of your investment strategy and a list of the major
stocks you own.
For more information and analysis of companies and mutual funds, visit
SmartMoney.com at http://www.smartmoney.com

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

AReM Says Sweet Bailout Deal for Edison Eliminates Competitors, Rebuilds
Monopoly and Keeps Consumers Hostage

07/16/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)

Energy Service Providers Vehemently Oppose ABX2 82
SACRAMENTO, Calif., July 16 /PRNewswire/ -- The Alliance for Retail Energy
Markets (AReM) today announced its strong opposition to ABX2 82, the state
Assembly Democrats' most recent alternative to the Southern California Edison
MOU.
As drafted, this new legislation seeks to immediately close the door on
direct access and prevent the restoration of retail choice until at least
2003. This will effectively remove the ability of customers to take control
of their own energy supply needs, thereby rendering them hostage to the
utilities.
"This bill is about putting Edison back on its feet and putting Edison's
competitors out of business," said Rick Counihan of Green Mountain Energy
Company. "Customers' right to choose the best energy option to meet their
needs, and the needs of the environment, is being trampled in the name of
restoring a monopoly."
Furthermore, ABX2 82 raises questions about the status of existing contracts
and current customers who may be forced, under the provisions of this bill,
to return to extremely high priced power under the utilities.
"In many ways this bill is worse than AB X1 because it threatens to nullify
extension contracts for current direct access customers," said Aaron Thomas
with AES NewEnergy. "This would force customers to return to utility service
which would require the state to buy even more power than it has already."
AReM stressed that it is long overdue for policy makers to promote an
equitable and workable retail energy market. The legislature must immediately
amend this legislation and replace it with a policy that is not created at
the expense of large and small retail customers.
"Legislators have argued that it is important for California to take control
of its energy destiny," said Andrea Weller of Strategic Energy. "Too bad they
are not willing to let Californians take control of their energy destinies."
Alliance for Retail Energy Markets (AReM) is a coalition whose member
companies serve nearly all of the California customers who have chosen a
competitive energy provider instead of their traditional utility provider.
AReM members include AES NewEnergy, Inc., Calpine, Commonwealth Energy Corp.,
Enron Energy Services, Inc., GreenMountain Energy Company, The New Power
Company, New West Energy, Shell Energy Services, and Strategic Energy, L.L.C.
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X92216507

/CONTACT: Tracy Fairchild, +1-916-442-2331, or +1-916-835-9007, or or Erica
Manuel, +1-916-442-2331, or +1-916-201-5029, both of Alliance for Retail
Energy Markets/ 15:38 EDT
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Dutch Power Mkt Pressure On Watchdog, Generators, Mounts
By Arent Jan Hesselink
Of DOW JONES NEWSWIRES

07/16/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

AMSTERDAM -(Dow Jones)- The pressure on Dutch energy market watchdog Dte to
force electricity generators to disclose commercially sensitive plant status
information is mounting.
Monday, electricity traders wrote an open letter through VOEG, a free trade
association for electricity and gas, that generators in the Netherlands be
forced to publish information on power plant outages.
"I have been saying it for ages: generators should let the market know what
they're doing at their plants," said a trader with a large utility, while
another said VOEG's proposal, if agreed, would lead to a "more stable, honest
market."
VOEG is reacting to recent hikes in prices for Dutch spot electricity. Those
prices have soared in recent weeks, reaching levels of up to EUR1,200 a
megawatt-hour on some days from around EUR35.00/MWh on a normal day.
Traders have been speculating that unreported generator outages are at least
part of the reason for the price hikes. Unscheduled outages are especially
problematic in the Dutch market because of the small volumes traded.
Reserve plant is difficult to bring on line quickly and readily-available
imported power is limited by congestion on the country's transmission lines.
When generators or suppliers are forced to cover short positions at short
notice, the result is therefore usually extreme.
Also, traders have said they suspect generators of deliberately pushing up
prices by cutting output.
Generators have always denied such allegations and no conclusive evidence has
ever been presented against them.
Clyde Murley, spokesman for Reliant Energy Inc (REI), which owns the Dutch
generator UNA, said information on the status of UNA's plant is "just too
commercially sensitive to make public." He said the generator doesn't approve
of VOEG's ideas, but declined to be drawn on their possible consequences.
A spokeswoman for Belgian-based Electrabel SA (B.ELE), also active as a
generator in the Netherlands, also said it "categorically doesn't want to
disclose such information."
Dte spokesman Hans Jacobs, declined to comment on VOEG's letter. Jacobs said
Dte is mapping market opinions on the way the Dutch electricity market
functions, in response to the electricity price hikes VOEG is responding to.
"We expect that process to be concluded at the end of this month," Jacobs
said. "We will then consider possible measures."
He added though that the Dte hasn't ruled out forcing generators to publish
outage details, whether or not such outages are caused by maintenance.
Monday's letter isn't the first on this subject to fall on Dte's doormat Last
week, a group of foreign power traders on the Dutch market sent a similar one
to the watchdog. Signatories to that letter included such parties as Enron
Corp ENE), Aquila Inc (ILA) and TXU Corp (TXU), and Dutch companies Eneco and
Remu.
Generators active in the Netherlands aren't required to publish any
information over outages, in contrast to the Nord Pool market that covers
Denmark, Norway, Sweden and Finland.
Since deregulation, European countries such as the U.K., Germany and Spain
have allowed generators a far greater degree of confidentiality over
controlling market sensitive information than exists in most financial
markets.
There are four generators active in the Netherlands: U.S-based Reliant Energy
Inc. (REI), Belgium's Electrabel SA (B.ELE), Germany's E.On AG (EON) and
Dutch firm Essent NV. All of them have entered the Dutch market by buying a
local generator.
-By Arent Jan Hesselink, Dow Jones Newswires; 31 20 6260770;
arentjan.hesselink@dowjones.com

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

U.S. Northwest Power Claims Put Utilities at Odds, Paper Says
2001-07-16 13:08 (New York)

     Washington, July 16 (Bloomberg) -- Enron Corp.'s Portland
General Electric and Avista Corp.'s Avista Energy are among
utilities in the U.S. Northwest that face claims by other regional
electricity providers that they were overcharged by $611 million,
the Oregonian reported.
    Such claims could pit one utility against each other as they
try to protect their customers. The utilities requesting refunds,
which include the Bonneville Power Administration and Tacoma
Power, were forced into paying unfair prices because of
California's energy crisis, the paper said, citing filings with
the Federal Energy Regulatory Commission.
     Some of the companies requesting refunds are on Tacoma's list
of targets. The situation would require sorting out every
transaction that occurred in the region, the paper said, citing
Rod Johnson, PGE's vice president for power supply.
     Unlike California, where power was bought and sold in a
central spot market, most sales in the Northwest were bilateral
contracts between willing buyers and sellers, the paper said.
Utilities didn't have to buy the power if they didn't like the
price, the paper said, citing Don Godard, manager at Grant County
PUD.

India Rejects Enron Proposal for NTPC to Buy Dabhol, Paper Says
2001-07-16 02:55 (New York)

     New Delhi, July 16 (Bloomberg) -- India said the state-run
National Thermal Power Corp. won't buy Enron Corp.'s stake in its
local unit Dabhol Power Co., the Business Standard reported,
citing Press Trust of India, a news agency.
     Enron Chairman Kenneth Lay at a meeting with India's Power
Minister Suresh Prabhu last week made the proposal, the paper
said. The minister rejected it on grounds National Thermal is not
in the business of taking over loss-making power companies.
     Enron's Lay also suggested the government could use National
Thermal, the country's largest power generator, and other state-
run utilities such as Power Trading Corp. to buy power generated
by Dabhol as a way to lower costs.
     National Thermal produces a quarter of India's electricity.
Power Trading owns the nation's power grid.
     Dabhol, 65 percent owned by Enron, and Maharashtra State
Electricity Board, its only customer, have been quarrelling for
the past seven months over unpaid bills. The board has stopped
buying power from Dabhol and construction work on the $3 billion
plant was halted last month after lenders stopped funding it.


pls print.  thanks df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 04/21/2000
12:45 PM ---------------------------

Bob Stevens
04/21/2000 11:26 AM
To: Drew Fossum/ET&S/Enron@ENRON
cc:

Subject: Black dog response

Drew:  I've reviewed the nature of this deal with John and Dave.  Can you
please review the legalese (its patterned after the 2/10 letters we sent.)  I
need to send off today.  Thanks


you dont have to be nasty

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Friday, October 26, 2001 3:27 PM
To:	Maggi, Mike
Subject:	RE:

you are a nut!  ok i'm sorry.  i admit it.  i am attracted to men who always have really red eyes and who talk bad about me behind computers!  how did you ever figure me out?

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Friday, October 26, 2001 3:26 PM
To:	Nelson, Michelle
Subject:	RE:

the first step to recovery is admitting it

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Friday, October 26, 2001 3:24 PM
To:	Maggi, Mike
Subject:	RE:

oh shit you are saying that i have a crush on you?  i am finally catching on.  don't make me come down there and kick your butt!

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Friday, October 26, 2001 3:23 PM
To:	Nelson, Michelle
Subject:	RE:

just admit it

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Friday, October 26, 2001 3:22 PM
To:	Maggi, Mike
Subject:	RE:

on yourself?

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Friday, October 26, 2001 3:21 PM
To:	Nelson, Michelle
Subject:	RE:

ok a crush

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Friday, October 26, 2001 3:21 PM
To:	Maggi, Mike
Subject:	RE:

what's an infatuation?  you being a brat?  that will never pass

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Friday, October 26, 2001 3:20 PM
To:	Nelson, Michelle
Subject:	RE:

dont worry it is probably just an infatuation that will pass

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Friday, October 26, 2001 3:19 PM
To:	Maggi, Mike
Subject:	RE:

that makes you an eve bigger brat.

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Friday, October 26, 2001 3:18 PM
To:	Nelson, Michelle
Subject:	RE:

I know

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Friday, October 26, 2001 3:18 PM
To:	Maggi, Mike
Subject:	RE:

YOU ARE A BRAT!!!!

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Friday, October 26, 2001 3:17 PM
To:	Nelson, Michelle
Subject:	RE:

whatever, ok if thats what you want me to believe

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Friday, October 26, 2001 3:16 PM
To:	Maggi, Mike
Subject:	RE:

quit flattering yourself.  it was a male looking at you and he told me!  how do you feel about that?

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Friday, October 26, 2001 3:16 PM
To:	Nelson, Michelle
Subject:	RE:

stop lying, you dont have to be embarrased, I understand

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Friday, October 26, 2001 3:15 PM
To:	Maggi, Mike
Subject:	RE:

then i guess it is a fact that a male was staring at you.

i am laughing so hard!!!! :)

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Friday, October 26, 2001 3:13 PM
To:	Nelson, Michelle
Subject:	RE:

I wasnt accusing you I was just stating a fact

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Friday, October 26, 2001 3:13 PM
To:	Maggi, Mike
Subject:	RE:

i can't tell because then you would acuse them of staring at you too.

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Friday, October 26, 2001 3:11 PM
To:	Nelson, Michelle
Subject:	RE:

no I dont know how it works, and who told you

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Friday, October 26, 2001 3:10 PM
To:	Maggi, Mike
Subject:	RE:

don't you have messenger

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Friday, October 26, 2001 3:09 PM
To:	Nelson, Michelle
Subject:	RE:

nobody told you, dont lie

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Friday, October 26, 2001 3:08 PM
To:	Maggi, Mike
Subject:	RE:

damn you caught me.  and for your information, i didn't notice it...someone told me about it!  so whatever to you mr. allergy man!!!

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Friday, October 26, 2001 3:07 PM
To:	Nelson, Michelle
Subject:

if you werent always staring at me you wouldnt notice my eyes


He has view access, but he doesn't have edit capability, which he needs.

	Scott Cleverly
	07/21/2000 03:28 PM

		 To: Tana Jones/HOU/ECT@ECT
		 cc:
		 Subject: Re: I'm out of the office this week.

Tana:

Looks like he currently has access. Perhaps Mike was able to have it granted.

	Tana Jones
	07/21/2000 03:16 PM

		 To: Scott Cleverly/HOU/ECT@ECT
		 cc: Brent Hendry/NA/Enron@Enron
		 Subject: I'm out of the office this week.

Scott,

Is there someone else in your group who can get Brent access to the Financial
Trading Agreement Database?
----- Forwarded by Tana Jones/HOU/ECT on 07/21/2000 03:15 PM -----

	Michael Neves
	07/21/2000 03:01 PM

		 To: Tana Jones/HOU/ECT@ECT
		 cc:
		 Subject: I'm out of the office this week.

I will be out of the office from 07/17/2000 until 07/24/2000.

I will be checking email & voice mail regularly, but if you need to contact
me I can be reached by mobile phone at (281)-788-0243.  If it is an
emergency, please contact the Notes Development Group at 3-6929.


Does anyone have this file?  Please let me know as soon as possible.  Thanks.

Sara Shackleton
Enron Wholesale Services
1400 Smith Street, EB3801a
Houston, TX  77002
Ph:  (713) 853-5620
Fax: (713) 646-3490


If anyone has or expects to be able to respond to the FERC Order by
increasing QF production, please keep IEP aware of by documenting your
efforts and successes, and forwarding via email to IEP the status report.
We plan to compile the industry response to the FERC Order.  Thanks.\

----- Original Message -----
From: Steven Kelly <steven@iepa.com>
To: William Hall <wfhall2@duke-energy.com>; Ward Scobee
<wscobee@caithnessenergy.com>; Trond Aschehoug
<taschehoug@thermoecotek.com>; Tony Wetzel <twetzel@thermoecotek.com>;
Thomas Heller <hellertj@apci.com>; Tandy McMannes <mcmannes@aol.com>; Sue
Mara <smara@enron.com>; Steve Ponder <steve_ponder@fpl.com>; Steve Iliff
<siliff@riobravo-gm.com>; Stan Marks <Stan.marks@nrgenergy.com>; Scott Noll
<snoll@thermoecotek.com>; Roger Pelote <roger.pelote@williams.com>; Robert
Frees <freesrj@apci.com>; Rob Lamkin <rllamkin@seiworldwide.com>; Randy
Hickok <rjhickok@duke-energy.com>; Randall Kob <randall.kob@prudential.com>;
Paula Soos <paula_soos@ogden-energy.com>; Nam Nguyen
<nam.nguyen@powersrc.com>; Milt Schultz <bfpjv@c-zone.net>; Mike Hawkins
<hawkins@2000energy.com>; Merrill Kramer <mkramer@akingump.com>; Marty
McFadden <marty_mcfadden@ogden-energy.com>; Marc Tompkins <marc
Cc: Jan Smutny-Jones <smutny@iepa.com>; Katie Kaplan <kaplan@iepa.com>;
Carol Hudson <Chudson@iepa.com>; Steven Kelly <steven@iepa.com>; Doug Kerner
<dkk@eslawfirm.com>; Andy Brown <abb@eslawfirm.com>; Karen Edson
<kedson@ns.net>; Bob Weisenmiller <rbw@mrwassoc.com>; Steve McClary
<scm@mrwassoc.com>
Sent: Friday, December 08, 2000 4:57 PM
Subject: FERC Order Granting Emergency Waiver of QF Regulations until
January 1, 20001

> In response to the FERC Order on the California marketplace, Ridgeway
Power
> filed comments argueing for a waiver of QF regulations in order to incent
> more power into the California marketplace.  IEP discussed this concept
with
> FERC Commissioners today and the Commission issued late today an Order
> Granting Emergency Waiver of QF Regulations for the remainder of this
year.
> This order is attached as part of an additional order by FERC granting the
> CAISO request for implementation of a $250 "soft cap" plus penalities for
> failue to respond to CAISO dispatch orders during an emergency.
>
> For QFs positioned to take advantage of the FERC Order, IEP suggests (1)
> procure legal advice because in essense you have an existing contract with
> the utility, (2) contact your utility/contract holder, and as appropriate
> move to implement the FERC Order.  Your existing bilateral contract with
the
> utility provides for a SRAC based payment mechanism which appears to apply
> under the FERC Order.   Note, however, that the waiver at this time only
> applies through the end of this year.  You may have other options as well.
>
> ----- Original Message -----
> From: Katie Kaplan <kaplan@iepa.com>
> To: Steven Kelly <steven@iepa.com>
> Sent: Friday, December 08, 2000 4:47 PM
>
>
> >
> >
> > Katie Kaplan
> > Manager of State Policy Affairs
> > Independent Energy Producers Association
> > (916) 448-9499
> >
> >
>


----- Forwarded by Tana Jones/HOU/ECT on 05/07/2001 11:00 AM -----

	exchangeinfo@nymex.com
	05/04/2001 12:07 PM

		 To: tana.jones@enron.com
		 cc:
		 Subject: (01-147) Use of Letters of Credit, Certain Securities and
Deliverable Warehouse Receipts as Margin...

Notice # 01-147
May 4, 2001

TO:
All NYMEX and COMEX Members and Member Firms

FROM:
Neal L. Wolkoff, Executive Vice President

RE:
Use of Letters of Credit, Certain Securities and Deliverable Warehouse
Receipts as Margin  for NYMEX and COMEX Transactions

DATE:
May 4, 2001
===========================================================

! Please be advised that the NYMEX Board of Directors has approved changes to
NYMEX and COMEX Clearing Association rules, which have also been filed with
the CFTC, that expand the types of non-cash assets that customers may deposit
with their Clearing Members for margin purposes.

! Specifically, the rule changes, which are attached below, permit the use of
letters of credit, certain securities and deliverable warehouse receipts by
customers to meet their margin requirements. The rule changes provide for
consistent treatment in the use of such assets for both NYMEX and COMEX
Divisions.

! Letters of Credit.  As a result of the rule changes, letters of credit
(LCs) now will be allowed for customer margin on both divisions.

! Use of Letters of Credit on Pass-Through Basis.  In addition, the rule
changes allow letters of credit to be used on a &pass-through8 basis on both
divisions.  In other words, Clearing Members on both divisions will be able
to pledge to the applicable clearinghouse certain LCs posted by customers. It
should be noted that while securities and deliverable warehouse receipts, as
detailed below, may be used by customers for margin purposes, such assets may
not be used on a pass-through basis by a Clearing Member to meet its margin
obligations with the clearinghouse.

! Securities. Customers also will be able to deposit with their Clearing
Members certain types of securities as margin. The types of acceptable
securities are the kinds of securities that have been accepted for some time
on the COMEX Division.  Specifically, the rule changes will permit customers
to deposit the following types of securities as margin with Clearing Members
on either division:

securities listed for trading on the New York Stock Exchange, Inc. or the
American Stock Exchange, Inc., or which are traded in the over-the-counter
market approved for margin by the Board of Governors of the Federal Reserve
Board except that such securities must be free from liens and encumbrances;
can represent no more than 5% of the issued and outstanding shares of any one
issuer; and will be valued for purposes of margin at 75% of their market
value.

! Deliverable Warehouse Receipts. On both divisions, deliverable warehouse
receipts for any of the commodities traded on the Exchange will be accepted
as customer margin provided that such receipts will be valued as margin at no
more than 75% of the value of the commodity.

! Effective Date. These rule changes will go into effect on June 1, 2001.

! Exchange Form for Pass-Through Letters of Credit.  A follow-up Notice to
Clearing Members will be distributed shortly that will include a form
prepared by NYMEX that will serve as the authorized  uniform form for
irrevocable letters of credit for use on a pass-through basis at the Exchange
.

If you have any questions concerning this change, please contact Bernard
Purta, Senior Vice President, Regulatory Affairs and Operations, at (212)
299- 2380; Arthur McCoy, Vice President, Financial Surveillance Section,
NYMEX Compliance Department, at (212) 299-2928; or Joseph Sanguedolce,
Director, Financial Surveillance Section, NYMEX Compliance Department, at
(212) 299-2855,.

AMENDMENTS TO NYMEX RULE 4.01 (&CUSTOMER,S MARGINS8), NYMEX RULE 9.05
(&MARGINS8) AND TO COMEX CLEARING ASSOCIATION RULE 48 (&DEPOSIT OF SECURITIES
AND LETTERS OF CREDIT AS ORIGINAL MARGIN8)

(Asterisks indicate additions; brackets indicate deletions.)

Rule 4.01. CUSTOMER'S MARGINS

(A) Initial margin at least equal to the level set for customers shall be
required of all customers. In no case shall a customer's initial margin be
less than a specified amount per contract, or a specified percentage of the
market value at which any commodity is bought or sold, such customer's margin
to be determined and announced by the Board of Directors or its designee.

 (B) Once the required initial margin has been deposited for each individual
transaction, such trade and such margin shall, for the purposes of this rule,
lose their individual identity and be commingled with all other trades and
margins in the same commodity for the same customer account.

 (C) When the margin (Net Liquidating Value plus Non-Cash Deposits) in a
customer's account declines below the maintenance margin requirement
applicable to the open positions carried in such account, the Member Firm
carrying said account is required to collect (call) from the customer such
funds, which when deposited, will restore it to the then prevailing initial
margin requirement.

 (D) A Member Firm shall not accept orders for new trades on behalf of an
undermargined customer account other than those which reduce its initial
margin requirement unless such Member Firm has been given assurances by said
customer that funds sufficient to restore the account to its then prevailing
initial margin requirement are forthcoming and will be received in a
reasonable amount of time not to exceed one business day for Floor Members
and three business days for all other customers.

(E)(1) A Member Firm may accept deposits from its customers in one or more of
the following forms as margin to cover open NYMEX Division positions:

 (a) United States Currency; or any currency freely convertible to United
States currency; provided that if foreign currency is deposited, its value
shall be calculated so that at the current rate of exchange the U.S. dollar
equivalent of the foreign currency satisfies the customer's margin obligation.

 (b) securities issued by the Department of the Treasury of the United States
maturing within ten (10) years of the date of the deposit and guaranteed as
to principal and interest by the United States Government. Such securities
shall be valued at ninety five percent (95%) of par value.

*(c) securities which are listed for trading on the New York Stock Exchange,
Inc. or the American Stock Exchange, Inc., or which are traded in the
over-the-counter market approved for margin by the Board of Governors of the
Federal Reserve Board provided that such securities; (i) are free from liens
and encumbrances; (ii) represent no more than 5% of the issued and
outstanding shares of any one issuer; and (iii) are valued at 75% of the
market value thereof;

(d) a letter of credit in favor of a clearing member carrying an account, or
in the case of any letter or credit to be used on a pass-through basis with
the Clearing House a letter of credit in favor of the Exchange.  All letters
of credit shall be issued in such form as may be prescribed by the Exchange
and by a depository which has been approved by the Exchange for issuance and
confirmation of letters of credit drawn in favor of the Clearing Members or
in favor of the Exchange, as applicable.

(e) deliverable warehouse receipts for commodities traded on the Exchange
provided that such receipts will be valued as margin at no more than 75% of
the value of the commodity.*

[(c)] *(f)* The net liquidating value in a customer's account over the
initial margin requirements for the positions carried for such account.

(2) A Member Firm may accept deposits from its customers in one or more of
the following forms as margin to cover open COMEX Division positions:

(a) United States currency, checks payable in United States currency, or
currency freely convertible to United States currency; provided that if
foreign currency is deposited, its value shall be calculated so that at the
current rate of exchange the U.S. dollar equivalent of the foreign currency
satisfies the customer's margin obligations;

(b) the net liquidating value in a customer's account over the initial margin
requirements for the positions carried for such account;

(c) securities issued or guaranteed by the United States, provided that such
securities shall be valued at the lower of the par or market value thereof;

(d) securities which are listed for trading on the New York Stock Exchange,
Inc. or the American Stock Exchange, Inc., or which are traded in the
over-the-counter market approved for margin by the Board of Governors of the
Federal Reserve Board provided that such securities; (i) are free from liens
and encumbrances; (ii) represent no more than 5% of the issued and
outstanding shares of any one issuer; and (iii) are valued at 75% of the
market value thereof;

(e) *deliverable* warehouse receipts *for commodities traded on the Exchange
provided that such receipts will be valued as margin at no more than 75% of
the value of the commodity*; [provided that such warehouse receipts shall be
valued in accordance with the following:

(i) if the warehouse receipt is for a deliverable grade of the commodity
underlying either the futures contract sold or the futures contract which is
the subject of the call options sold, not more than 90% of the value of the
commodity may be considered as margin; and;

(ii) if the warehouse receipt is for a deliverable grade of the futures
contract purchased or the put options sold, not more than 75% of the value of
the commodity may be considered as margin; and;

(iii) if the warehouse receipt is for either: (A) deliverable grade of a
commodity other than the commodity underlying the futures contract or option
to be margined; or (B) a form of silver or gold not deliverable under a
futures contract, then not more than 75% of the value of the warehouse
receipt may be considered as margin.]

(f) physical commodities (but not forward contracts therefor) if the carrying
member is in possession and control of negotiable documents covering such
commodities, provided, however, that the value of such commodities shall be
based upon the contract market price for the grade of such commodity or if
the commodity is not of a grade deliverable on a contract market, then at the
price for the grade of such commodity on the spot market;

(g) a letter of credit in favor of a clearing member carrying an account*, or
in the case of any letter or credit to be used on a pass-through basis with
the Clearing House a letter of credit in favor of the Exchange.  All letters
of credit shall be* issued in such form as may be prescribed by the Exchange
and by a depository which has been approved by the Exchange for issuance and
confirmation of letters of credit drawn in favor of the Clearing Members *or
in favor of the Exchange, as applicable.*

 (3) Calls issued by Member Firms for additional margin from customers may
only be met by: deposits conforming to the requirements of Rule 4.01(E)(1)
for open NYMEX Division positions, or conforming to the requirements of Rule
4.01(E)(2) for open COMEX Division positions, or, for open positions on
either division of the Exchange, favorable market movements which, when taken
into consideration and combined with any other monies available, enable the
customer's margin to equal or exceed the then prevailing initial margin
requirement.

 (F) Withdrawals of margin from a customer's account may only be permitted by
a Member Firm carrying such account if the remaining funds in such account
are equal to or in excess of the then prevailing initial margin required of
the applicable open positions at the time of said withdrawal request.

(G) The customer's response to a margin call issued by a Member Firm must be
timely and complete. A Member Firm may call, at any time, for margins above
and beyond the minimums required by the Exchange. A Member Firm may liquidate
any or all positions maintained by a customer for failure to meet a margin
call. The customer will be liable for any loss or deficiency resulting
therefrom.

 (H) The margin requirements established by the Board or its designee may
vary for different commodities and may be changed from time to time by the
Board or its designee, and in the discretion of the Board or its designee,
may be made applicable to all open trades as well as new trades.

 (I) Arbitrage

(1) For the purposes of Exchange margin requirements, an arbitrage position
is a purchase or sale of an Exchange futures contract in one delivery month
which futures contract is offset by a futures contract to sell or to purchase
a similar quantity of a related commodity in the same or different delivery
month which offsetting futures contract is executed on or subject to the
rules of a different exchange. In order to qualify as an arbitrage position,
each contract long and short must be carried by the same member firm for the
same account.

(2) The Board of Directors, by resolution, may identify those futures
contracts, that are executable on and/or subject to the rules of a different
exchange, which shall be deemed to qualify as part of an arbitrage position.

(3) The Board of Directors or its designee may set levels of margin for
arbitrage positions at a rate less than applicable to outright positions;
provided, however, that except for interdivision straddles, no such rate
shall be lower than the rates established for clearing members' margins.

Rule 9.05. MARGINS

* * * *
(E) Clearing Members may meet original margin calls by depositing:

(1) Cash (U.S. Currency);

(2) Original Margin Certificates issued by an original margin depository, in
form acceptable to the Clearing House, for delivery to the order of the
Clearing House, representing securities issued by the Department of Treasury
of the United States of America maturing within ten (10) years from the date
of the deposit and guaranteed as to principal and interest by the United
States Government; such securities shall be valued at ninety five percent
(95%) of the par value; or

(3) Subject to a maximum limit of 50% of the Clearing Member's total original
margin obligations, Irrevocable Letters of Credit payable to the order of the
Clearing House *including such Letters of Credit that are deposited with the
Clearing Member in accordance with Exchange procedures by a customer*, in
form acceptable to the Clearing House, issued by or confirmed by an original
margin depository and having an expiration date of not less than three (3) or
more than eighteen (18) months from the date of issuance; provided, however,
that such Letter of Credit may not be used to meet original margin
obligations during the fifteen calendar days prior to the expiration date
thereof (if the fifteenth day prior to the expiration of the Letter of Credit
is not a business day, the period during which such Letter of Credit may not
be used to meet original margin obligations shall begin on the business day
immediately preceding that day); and, provided further, that on the business
d!
ay!
 preceding the fifteenth calendar day prior to the expiration of the Letter
of Credit, the Clearing House shall issue a call for original margin to be
deposited in a form and manner acceptable to the Clearing House for positions
held open as of the close of business on that day and margined by the Letter
of Credit. The Clearing House shall have the unqualified right to call on any
Letter of Credit at any time prior to expiration.

CCA Rule 48. DEPOSIT OF SECURITIES AND LETTERS OF CREDIT A ORIGINAL MARGIN

* * * *
(b) Irrevocable Letters of Credit.

(i) The Corporation will accept as original margin for the full face amount
thereof a letter of credit in favor of the Corporation issued by any
institution selected by the depositor *including such Letters of Credit in
favor of the Corporation that are deposited with the Clearing Member in
accordance with Exchange procedures by a customer*, provided that

(A) such  institution has been approved by the Board as an approved
depository or such institution is organized under the laws of the United
States or the laws of any state and the letter of credit issued by such
institution has been confirmed by an approved depository;
(B) that the aggregate amount of letters of credit which may be accepted at
any time from any one approved depository, or for the account of any one
Clearing Member may be limited by the Board from time to time;
(C) that a letter of credit issued on behalf of a Clearing Member by an
institution which is an affiliated firm of such Clearing Member must be
confirmed by an institution which is not an affiliated firm of such Clearing
Member; and
(D) such letter of credit shall be in form and substance approved by the
Board and shall be in such denominations as may be determined by the Board
from time to time; shall be irrevocable, shall be available to be drawn upon
by the Corporation by  a clean sight draft(s) or written demand(s) and shall
run for a period of not less than ninety (90) days from the date of issue.

__________________________________________________
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Please also put all this data with the weekly calendar

-----Original Message-----
From: Winters, Ricki
Sent: Thu 10/4/2001 8:43 AM
To: Corman, Shelley
Cc:
Subject: FW: Add'l Roundtable materials

I already have everything printed for this meeting.  Let me know if you would like to review prior.

 -----Original Message-----
From:   Bagot, Nancy
Sent:   Thursday, October 04, 2001 8:20 AM
To:     Van Norden, Mike; Armstrong, Julie; Benner, Martha; Blair, Lynn; Brown, Sharon; Butler, Janet; Cantrell, Rebecca W.; Cappiello, Deborah; Carrillo, Alma; Cones, Janet; Cordes, Bill; Corman, Shelley; Dietz, Rick; Dornan, Dari; Dushinske, John; Fossum, Drew; Garcia, Ava; Goodpasture, John; Harris, Steven; Hartsoe, Joe; Hass, Glen; Hayslett, Rod; Heckerman, Bambi; Hess, Theresa; Holtzman, Staci; Horton, Stanley; Hotte, Steve; Houser, Rita; January, Steven; Kean, Steven J.; Kilmer III, Robert; King Jr., Frazier; Kirk, Steve; Kissner, Tim; Lantefield, Laura; Lehn, Terry; Lokey, Teb; Mann, Ruth; McCarty, Danny; McCoppin, Dorothy; McGowan, Mike W.; Miller, Kent; Miller, Mary Kay; Moran, Michael F.; Nacey, Sheila; Neppl, Ray; Neubauer, Dave; Neufeld, Eva; Paschal, Zelda; Pavlou, Maria; Petersen, Keith; Place, Janet; Porter, Gregory J.; Prizont, Karina; Pryor, Tony; Sawyer, Lisa; Scott, Donna; Sellers, Emily; Solon, Sharon; Stark, Cindy; Studebaker, James ; Taylor, Gina; Veatch, Stephen; Waser, Iris; Winters, Ricki

Subject:        Add'l Roundtable materials

Please find attached three background documents for discussion at next Monday's Regulatory Roundtable (Oct. 8):

- Talking Points on the LDC Service issue
- Issues List on FERC's proposed Affiliate Rule
- Comparison between the Affiliate NOPR and the current Standards of Conduct regulations (for gas only)

<<Issues List on marketing affiliate.doc>> <<Marketing Affiliates - Comparison to 1611.doc>> <<LDC service issues for ETS Reg.doc>>


do you still get worth magazine?  there is an article on enron and they use a
photo from the gas trading floor.  you can see me in the photo.  i am at the
top under the second flat screen on the right.  i am blurred so you can't
really tell it is me.