George,

 Can you please call my credit desk at 713-853-1803.  They have not received
any financials for ACN Power.

Thanks,

Phillip Allen

Re: W basis quotes


Re: W basis quotes


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 02/09/2000
10:27 AM ---------------------------

"George Rahal" <george.rahal@acnpower.com> on 02/07/2000 03:13:58 PM
To: <Phillip_K_Allen@enron.com>
cc:
Subject: RE: W basis quotes

I'll get back to them on this.  I know we have sent financials to Clinton
Energy...I'll check to see if this is enough.  In the meantime, is it
possible to show me indications on the quotes I asked for?  Please advise.
George

George Rahal
Manager, Gas Trading
ACN Power, Inc.
7926 Jones Branch Drive, Suite 630
McLean, VA 22102-3303
Phone  (703)893-4330 ext. 1023
Fax  (703)893-4390
Cell (443)255-7699

> -----Original Message-----
> From: Phillip_K_Allen@enron.com [mailto:Phillip_K_Allen@enron.com]
> Sent: Monday, February 07, 2000 5:54 PM
> To: george.rahal@acnpower.com
> Subject: Re: W basis quotes
>
>
>
> George,
>
>      Can you please call my credit desk at 713-853-1803.  They have not
> received any financials for ACN Power.
>
> Thanks,
>
> Phillip Allen
>
>

RE: W basis quotes


RE: W basis quotes


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 02/11/2000
12:31 PM ---------------------------

"George Rahal" <george.rahal@acnpower.com> on 02/07/2000 03:13:58 PM
To: <Phillip_K_Allen@enron.com>
cc:
Subject: RE: W basis quotes

I'll get back to them on this.  I know we have sent financials to Clinton
Energy...I'll check to see if this is enough.  In the meantime, is it
possible to show me indications on the quotes I asked for?  Please advise.
George

George Rahal
Manager, Gas Trading
ACN Power, Inc.
7926 Jones Branch Drive, Suite 630
McLean, VA 22102-3303
Phone  (703)893-4330 ext. 1023
Fax  (703)893-4390
Cell (443)255-7699

> -----Original Message-----
> From: Phillip_K_Allen@enron.com [mailto:Phillip_K_Allen@enron.com]
> Sent: Monday, February 07, 2000 5:54 PM
> To: george.rahal@acnpower.com
> Subject: Re: W basis quotes
>
>
>
> George,
>
>      Can you please call my credit desk at 713-853-1803.  They have not
> received any financials for ACN Power.
>
> Thanks,
>
> Phillip Allen
>
>

RE: W basis quotes


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 03/16/2000
02:07 PM ---------------------------

Stephane Brodeur
03/16/2000 07:06 AM
To: Phillip K Allen/HOU/ECT@ECT
cc:
Subject: Maps

As requested by John, here's the map and the forecast...
Call me if you have any questions (403) 974-6756.

Maps


Maps


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 03/21/2000
01:24 PM ---------------------------

Stephane Brodeur
03/16/2000 07:06 AM
To: Phillip K Allen/HOU/ECT@ECT
cc:
Subject: Maps

As requested by John, here's the map and the forecast...
Call me if you have any questions (403) 974-6756.

Maps


Stephane,

 Can you create an e-mail list to distribute your reports everyday to the
west desk?
Or put them on a common drive?  We can do the same with our reports.   List
should include:

 Phillip Allen
 Mike Grigsby
 Keith Holst
 Frank Ermis
 Steve South
 Janie Tholt
 Tory Kuykendall
 Matt Lenhart
 Randy Gay

Thanks.

Phillip

Re: Maps


Re: Maps


testing

test


home.enron.com

this is home.enron.com.

test


Received

z <zyft02@yahoo.com> on 10/04/2000 08:48:55 AM
Please respond to zyft02@yahoo.com
To: john.arnold@enron.com
cc:
Subject: TEST

This is a test from Yahoo email. Please reply if
received.

Don Adam
Team Lead, Trader Support

__________________________________________________
Do You Yahoo!?
Yahoo! Photos - 35mm Quality Prints, Now Get 15 Free!
http://photos.yahoo.com/

Re: TEST


Re: TEST


test successful.  way to go!!!

Re: test


please add mike grigsby to distribution list.

Re: New Notice from Transwestern Pipeline Co.


please add mike grigsby to distribution


Transwestern Pipeline Co. posted new notice(s) since our last check at
12/12/2000 12:18:01 PM, the newest notice looks like:

 Capacity Constraint, Dec 12 2000 12:25PM, Dec 13 2000  9:00AM, Dec 14 2000
8:59AM, 2231, Allocation - SOCAL NEEDLES

Please click the following to go to the web site for detail.

http://ios.ets.enron.com/infoPostings/shared/et_noncritical_notice.asp?company
=60

New Notice from Transwestern Pipeline Co.

ywang@enron.com, patti.sullivan@enron.com, phillip.k.allen@enron.com, jane.m.tholt@enron.com, mike.grigsby@enron.com


Transwestern Pipeline Co. posted new notice(s) since our last check at
12/12/2000 6:48:01 PM, the newest notice looks like:

 Capacity Constraint, Dec 12 2000  9:24PM, Dec 13 2000  9:00AM, Dec 14 2000
8:59AM, 2236, Allocation - San Juan Lateral

Please click the following to go to the web site for detail.

http://ios.ets.enron.com/infoPostings/shared/et_noncritical_notice.asp?company
=60


Transwestern Pipeline Co. posted new notice(s) since our last check at
12/13/2000 1:30:01 PM, the newest notice looks like:

 Capacity Constraint, Dec 13 2000  1:48PM, Dec 14 2000  9:00AM, Dec 15 2000
8:59AM, 2237, Allocation - SOCAL NEEDLES

Please click the following to go to the web site for detail.

http://ios.ets.enron.com/infoPostings/shared/et_noncritical_notice.asp?company
=60


Transwestern Pipeline Co. posted new notice(s) since our last check at
12/13/2000 2:00:01 PM, the newest notice looks like:

 Phone List, Dec 13 2000  2:12PM, Dec 13 2000  2:12PM, Until further notice,
2238, TW-On Call Listing 12/16 - 12/17

Please click the following to go to the web site for detail.

http://ios.ets.enron.com/infoPostings/shared/et_noncritical_notice.asp?company
=60


Transwestern Pipeline Co. posted new notice(s) since our last check at
12/13/2000 3:30:01 PM, the newest notice looks like:

 Capacity Constraint, Dec 13 2000  4:03PM, Dec 14 2000  9:00AM, Dec 15 2000
8:59AM, 2241, Allocation - San Juan Lateral

Please click the following to go to the web site for detail.

http://ios.ets.enron.com/infoPostings/shared/et_noncritical_notice.asp?company
=60


Transwestern Pipeline Co. posted new notice(s) since our last check at
12/13/2000 4:00:01 PM, the newest notice looks like:

 Capacity Constraint, Dec 13 2000  4:03PM, Dec 14 2000  9:00AM, Dec 15 2000
8:59AM, 2241, Allocation - San Juan Lateral

Please click the following to go to the web site for detail.

http://ios.ets.enron.com/infoPostings/shared/et_noncritical_notice.asp?company
=60


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 09/08/2000
12:28 PM ---------------------------

"George Richards" <cbpres@austin.rr.com> on 09/08/2000 05:21:49 AM
Please respond to <cbpres@austin.rr.com>
To: "Phillip Allen" <pallen@enron.com>
cc: "Larry Lewter" <retwell@mail.sanmarcos.net>
Subject: Westgate Proforma-Phillip Allen.xls

Enclosed is the preliminary proforma for the Westgate property is Austin
that we told you about.  As you can tell from the proforma this project
should produce a truly exceptional return of over 40% per year over 3 years.
This is especially attractive when the project is in a market as strong as
Austin and we are introducing new product that in a very low price range for
this market.  This is the best project in terms of risk and reward that we
have uncovered to date in the Austin market.
The project does have approved zoning and will only require a site plan.  As
it is in the "Smart Growth Corridor" area designated by the City of Austin
for preferred development, this will be fast tracked and should be complete
in less than 6 months.  Additionally, many of the current and more severe
water treatment ordinances have been waived.  I have estimated the lot
improvement costs based on a 28 lot development we investigated in North
Austin, which included a detention/retention and filtration pond and street
widening.  Even though this property is not likely to require street
widening and will have less of a detention/retention and filtration pond
requirement, I used this data to be cautious.
 The Lone Star gas line easement in the lower portion of the property is not
expected to impact sales significantly.  Other projects have been quite
successful with identical relationships to this pipeline, such as the
adjoining single family residential and a project at St. Edwards University.
As with most infill projects, the quality of the surrounding neighborhoods
is uneven.  We have included a fence around the entire property, but may
only put it on Westgate and Cameron Loop.  Gated communities are far
preferred so this is a good idea for both screening and current buyer
preferences.
The seller accepted our offer Thursday evening with a price of $680,000 and
an extended escrow.  This will enable us to probably obtain an approved site
plan before closing on the contract, which will mean that we can close into
an A&D Loan rather than into a land loan and then an improvement loan.
This analysis shows your investment at $700,000 for a 50% interest in the
profits of the project.  As we discussed in San Marcos, we can also discuss
having you invest only in the lots, sell the lots to the construction entity
with your profit in the lot.  I believe this would facilitate the use of a
1031 Exchange of the proceeds from this deal into another project that is a
rental deal or at least into the land for a rental project that would then
be the equity for that project.  You would need to discuss this with an
exchange expert first.  Larry Lewter knows an expert in the field in San
Antonio if you do not know anyone.
I will send you a package on the property that was prepared by the broker,
by Airborne Express today for Saturday delivery.
Once you have read the package and reviewed this proforma, we would want to
schedule a tour of the site and the area.  Please get back to me as soon as
your schedule permits regarding the site visit and feel free to call at any
time.  You can reach me over the weekend and in the evening at either
512-338-1119 or 512-338-1110.  My cell phone is 512-748-7495 and the fax is
512-338-1103.   I look forward to hearing from you and to working with you
on this project that is sure to be a major winner.
I regret that it took so long to get back to you, but we had some unusual
events these past few weeks.  A small freakish wind storm with severe 60+mpg
downdrafts hit the South part of Austin where we are building 10 town homes.
One of these units had just had the roof decked with the siding scheduled to
start the next day.  The severe downdraft hitting the decked roof was enough
to knock it down.  The City shut down the project for a week and it took
another week to get every thing back on tract.  Then last week I had to take
my wife  to emergency.  She has a bulge in the material between the vertebra
in her spine and it causes her extreme pain and has kept her bedridden this
past week..  There is nothing like having your wife incapacitated to realize
the enormous number of things she does everyday.   Fortunately, it looks as
if she will be ok in the long run.
George W. Richards
Creekside Builders, LLC

 - Westgate Proforma-Phillip Allen.xls

Westgate Proforma-Phillip Allen.xls


Westgate Proforma-Phillip Allen.xls


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 09/11/2000
04:57 PM ---------------------------

"George Richards" <cbpres@austin.rr.com> on 09/08/2000 05:21:49 AM
Please respond to <cbpres@austin.rr.com>
To: "Phillip Allen" <pallen@enron.com>
cc: "Larry Lewter" <retwell@mail.sanmarcos.net>
Subject: Westgate Proforma-Phillip Allen.xls

Enclosed is the preliminary proforma for the Westgate property is Austin
that we told you about.  As you can tell from the proforma this project
should produce a truly exceptional return of over 40% per year over 3 years.
This is especially attractive when the project is in a market as strong as
Austin and we are introducing new product that in a very low price range for
this market.  This is the best project in terms of risk and reward that we
have uncovered to date in the Austin market.
The project does have approved zoning and will only require a site plan.  As
it is in the "Smart Growth Corridor" area designated by the City of Austin
for preferred development, this will be fast tracked and should be complete
in less than 6 months.  Additionally, many of the current and more severe
water treatment ordinances have been waived.  I have estimated the lot
improvement costs based on a 28 lot development we investigated in North
Austin, which included a detention/retention and filtration pond and street
widening.  Even though this property is not likely to require street
widening and will have less of a detention/retention and filtration pond
requirement, I used this data to be cautious.
 The Lone Star gas line easement in the lower portion of the property is not
expected to impact sales significantly.  Other projects have been quite
successful with identical relationships to this pipeline, such as the
adjoining single family residential and a project at St. Edwards University.
As with most infill projects, the quality of the surrounding neighborhoods
is uneven.  We have included a fence around the entire property, but may
only put it on Westgate and Cameron Loop.  Gated communities are far
preferred so this is a good idea for both screening and current buyer
preferences.
The seller accepted our offer Thursday evening with a price of $680,000 and
an extended escrow.  This will enable us to probably obtain an approved site
plan before closing on the contract, which will mean that we can close into
an A&D Loan rather than into a land loan and then an improvement loan.
This analysis shows your investment at $700,000 for a 50% interest in the
profits of the project.  As we discussed in San Marcos, we can also discuss
having you invest only in the lots, sell the lots to the construction entity
with your profit in the lot.  I believe this would facilitate the use of a
1031 Exchange of the proceeds from this deal into another project that is a
rental deal or at least into the land for a rental project that would then
be the equity for that project.  You would need to discuss this with an
exchange expert first.  Larry Lewter knows an expert in the field in San
Antonio if you do not know anyone.
I will send you a package on the property that was prepared by the broker,
by Airborne Express today for Saturday delivery.
Once you have read the package and reviewed this proforma, we would want to
schedule a tour of the site and the area.  Please get back to me as soon as
your schedule permits regarding the site visit and feel free to call at any
time.  You can reach me over the weekend and in the evening at either
512-338-1119 or 512-338-1110.  My cell phone is 512-748-7495 and the fax is
512-338-1103.   I look forward to hearing from you and to working with you
on this project that is sure to be a major winner.
I regret that it took so long to get back to you, but we had some unusual
events these past few weeks.  A small freakish wind storm with severe 60+mpg
downdrafts hit the South part of Austin where we are building 10 town homes.
One of these units had just had the roof decked with the siding scheduled to
start the next day.  The severe downdraft hitting the decked roof was enough
to knock it down.  The City shut down the project for a week and it took
another week to get every thing back on tract.  Then last week I had to take
my wife  to emergency.  She has a bulge in the material between the vertebra
in her spine and it causes her extreme pain and has kept her bedridden this
past week..  There is nothing like having your wife incapacitated to realize
the enormous number of things she does everyday.   Fortunately, it looks as
if she will be ok in the long run.
George W. Richards
Creekside Builders, LLC

 - Westgate Proforma-Phillip Allen.xls

Westgate Proforma-Phillip Allen.xls


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 09/19/2000
04:35 PM ---------------------------

"George Richards" <cbpres@austin.rr.com> on 09/08/2000 05:21:49 AM
Please respond to <cbpres@austin.rr.com>
To: "Phillip Allen" <pallen@enron.com>
cc: "Larry Lewter" <retwell@mail.sanmarcos.net>
Subject: Westgate Proforma-Phillip Allen.xls

Enclosed is the preliminary proforma for the Westgate property is Austin
that we told you about.  As you can tell from the proforma this project
should produce a truly exceptional return of over 40% per year over 3 years.
This is especially attractive when the project is in a market as strong as
Austin and we are introducing new product that in a very low price range for
this market.  This is the best project in terms of risk and reward that we
have uncovered to date in the Austin market.
The project does have approved zoning and will only require a site plan.  As
it is in the "Smart Growth Corridor" area designated by the City of Austin
for preferred development, this will be fast tracked and should be complete
in less than 6 months.  Additionally, many of the current and more severe
water treatment ordinances have been waived.  I have estimated the lot
improvement costs based on a 28 lot development we investigated in North
Austin, which included a detention/retention and filtration pond and street
widening.  Even though this property is not likely to require street
widening and will have less of a detention/retention and filtration pond
requirement, I used this data to be cautious.
 The Lone Star gas line easement in the lower portion of the property is not
expected to impact sales significantly.  Other projects have been quite
successful with identical relationships to this pipeline, such as the
adjoining single family residential and a project at St. Edwards University.
As with most infill projects, the quality of the surrounding neighborhoods
is uneven.  We have included a fence around the entire property, but may
only put it on Westgate and Cameron Loop.  Gated communities are far
preferred so this is a good idea for both screening and current buyer
preferences.
The seller accepted our offer Thursday evening with a price of $680,000 and
an extended escrow.  This will enable us to probably obtain an approved site
plan before closing on the contract, which will mean that we can close into
an A&D Loan rather than into a land loan and then an improvement loan.
This analysis shows your investment at $700,000 for a 50% interest in the
profits of the project.  As we discussed in San Marcos, we can also discuss
having you invest only in the lots, sell the lots to the construction entity
with your profit in the lot.  I believe this would facilitate the use of a
1031 Exchange of the proceeds from this deal into another project that is a
rental deal or at least into the land for a rental project that would then
be the equity for that project.  You would need to discuss this with an
exchange expert first.  Larry Lewter knows an expert in the field in San
Antonio if you do not know anyone.
I will send you a package on the property that was prepared by the broker,
by Airborne Express today for Saturday delivery.
Once you have read the package and reviewed this proforma, we would want to
schedule a tour of the site and the area.  Please get back to me as soon as
your schedule permits regarding the site visit and feel free to call at any
time.  You can reach me over the weekend and in the evening at either
512-338-1119 or 512-338-1110.  My cell phone is 512-748-7495 and the fax is
512-338-1103.   I look forward to hearing from you and to working with you
on this project that is sure to be a major winner.
I regret that it took so long to get back to you, but we had some unusual
events these past few weeks.  A small freakish wind storm with severe 60+mpg
downdrafts hit the South part of Austin where we are building 10 town homes.
One of these units had just had the roof decked with the siding scheduled to
start the next day.  The severe downdraft hitting the decked roof was enough
to knock it down.  The City shut down the project for a week and it took
another week to get every thing back on tract.  Then last week I had to take
my wife  to emergency.  She has a bulge in the material between the vertebra
in her spine and it causes her extreme pain and has kept her bedridden this
past week..  There is nothing like having your wife incapacitated to realize
the enormous number of things she does everyday.   Fortunately, it looks as
if she will be ok in the long run.
George W. Richards
Creekside Builders, LLC

 - Westgate Proforma-Phillip Allen.xls

Westgate Proforma-Phillip Allen.xls


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 09/26/2000
04:26 PM ---------------------------

"George Richards" <cbpres@austin.rr.com> on 09/26/2000 01:18:45 PM
Please respond to <cbpres@austin.rr.com>
To: "Phillip Allen" <pallen@enron.com>
cc: "Larry Lewter" <retwell@mail.sanmarcos.net>, "Claudia L. Crocker"
<clclegal2@aol.com>
Subject: Investment Structure

STRUCTURE:
Typically the structure is a limited partnership with a corporate (or LLC)
general partner.  The General Partner owns 1% of the project and carries the
liability of construction.

LAND OWNERSHIP & LOANS
The property would be purchased in the name of the limited partnership and
any land loans, land improvements loans and construction loans would be in
the name of the limited partnership.  Each of the individual investors and
all of the principals in Creekside would also personally guarantee the
loans.  If the investor(s) do not sign on the loans, this generally means
that a larger amount of cash is required and the investor's share of profits
is reduced.

All loans for residential construction, that are intended for re-sale, are
full recourse loans.  If we are pursuing multifamily rental developments,
the construction loans are still full recourse but the mortgage can often be
non-recourse.

USE OF INITIAL INVESTMENT
The initial investment is used for land deposit, engineering &
architectural design, soils tests, surveys, filing fees, legal fees for
organization and condominium association formation,  and appraisals.  Unlike
many real estate investment programs, none of the funds are used for fees to
Creekside Builders, LLC.  These professional expenses will be incurred over
the estimated 6 month design and approval period.

EARLY LAND COSTS
The $4,000 per month costs listed in the cash flow as part of land cost
represent the extension fees due to the seller for up to 4 months of
extensions on closing.  As an alternative, we can close into a land loan at
probably 70% of appraised value.  With a land value equal to the purchase
price of $680,000 this would mean a land loan of $476,000 with estimated
monthly interest payments of $3,966, given a 10% annual interest rate, plus
approximately 1.25% of the loan amount for closing costs and loan fees.

EQUITY AT IMPROVEMENT LOAN
Once the site plan is approved by the City of Austin, the City will require
the development entity to post funds for fiscal improvements, referred to as
the "fiscals".  This cost represents a bond for the completion of
improvements that COA considers vital and these funds are released once the
improvements have been completed and accepted by COA.  This release will be
for 90% of the cost with the remaining 10% released one year after
completion.  Releases can be granted once every 90 days and you should
expect that the release would occur 6 months after the start of lot
improvement construction.  These fiscals are usually posted in cash or an
irrevocable letter of credit.  As such, they have to be counted as a
development cost, even though they are not spent.  Because they are not
spent no interest is charged on these funds.

The lot improvement loan is typically 75% of the appraised value of a
finished lot, which I suspect will be at least $20,000 and potentially as
high as $25,000.  This would produce a loan amount of  $15,000 on $20,000
per lot.  With estimated per lot improvement costs of $9,000, 'fiscals' at
$2,000 and the land cost at $8,000 , total improved lot cost is $19,000
which means $0 to $4,000 per lot in total equity.  The investment prior to
obtaining the improvement loan would count towards any equity requirement
provided it was for direct costs.  Thus, the additional equity for the
improvement loan would be $0-$184,000.   Even if the maximum loan would
cover all costs, it is unlikely the bank would allow reimbursement of funds
spent. The higher estimates of equity investments are shown in the
preliminary proforma to be on the safe side.  The engineer is preparing a
tentative site layout with an initial evaluation of the phasing, which can
significantly reduce the cash equity requirement.

Phasing works as follows.  If the first phase was say 40 units, the total
lot improvement cost might average $31,000 per lot.   Of this, probably
$13,000 would be for improvements and $19,000 for the land cost.  The
improvements are higher to cover large one time up front costs for design
costs, the entry road, water treatment costs, perimeter fencing and
landscaping, and so on, as well as for 100% of the land.  The land loan for
undeveloped lots would be 70% of the appraised raw lot value, which I would
estimate as $10,000 per lot for a loan value of $7,000 per lot.  Then the
loan value for each improved lot would be $15,000 per lot.  This would give
you a total loan of $992,000, total cost of $1,232,645 for equity required
of $241,000.  This was not presented in the initial analysis as the phasing
is depended on a more careful assessment by the Civil Engineer as the
separate phases must each be able to stand on its own from a utility
standpoint.

CONSTRUCTION LOANS
There are three types of  construction loans.  First, is a speculative
(spec) loan that is taken out prior to any pre-sales activity.  Second,  is
a construction loan for a pre-sold unit, but the loan remains in the
builder/developers name.  Third, is a pre-sold unit with the construction
loan in the name of the buyer.  We expect to have up to 8 spec loans to
start the project and expect all other loans to be pre-sold units with loans
in the name of the builder/developer.  We do not expect to have any
construction loans in the name of the buyers, as such loans are too
difficult to manage and please new buyers unfamiliar with the process.

Spec loans will be for 70% to 75% of value and construction loans for
pre-sold units, if the construction loan is from the mortgage lender,  will
be from 80% to 95% of value.

DISBURSEMENTS
Disbursements will be handled by the General Partner to cover current and
near term third party costs, then to necessary reserves, then to priority
payments and then to the partners per the agreement.  The General Partner
will contract with Creekside Builders, LLC to construct the units and the
fee to CB will include a construction management and overhead fee equal to
15% of the direct hard cost excluding land, financing and sales costs.
These fees are the only monies to Creekside, Larry Lewter or myself prior to
calculation of profit, except for a) direct reimbursement for partnership
expenses and b) direct payment to CB for any subcontractor costs that it has
to perform.  For example, if CB cannot find a good trim carpenter sub, or
cannot find enough trim carpenters, etc., and it decides to undertake this
function, it will charge the partnership the same fee it was able to obtain
from third parties and will disclose those cases to the partnership.
Finally, CB will receive a fee for the use of any of its equipment if it is
used in lieu of leasing equipment from others.  At present CB does not own
any significant equipment, but it is considering the purchase of a sky track
to facilitate and speed up framing, cornice, roofing and drywall spreading.

REPORTING
We are more than willing to provide reports to track expenses vs. plan.
What did you have in mind?  I would like to use some form of internet based
reporting.

BOOKKEEPING
I am not sure what you are referring to by the question, "Bookkeeping
procedures to record actual expenses?"  Please expand.

INVESTOR INPUT
We are glad to have the investor's input on design and materials.  As always
the question will be who has final say if there is disagreement, but in my
experience I have always been able to reach consensus. As you, and I presume
Keith, want to be involved to learn as much as possible we would make every
effort to be accommodating.

CREEKSIDE PROCEEDURES
CB procedures for dealing with subs, vendors and professionals is not as
formal as your question indicates.  In the EXTREMELY tight labor market
obtaining 3 bids for each labor trade is not feasible.  For the professional
subs we use those with whom we have developed a previous rapport.  Finally,
for vendors they are constantly shopped.

PRE-SELECTED PROFESSIONALS, SUBS AND VENDORS
Yes there are many different subs that have been identified and I can
provide these if you are interested.

I know I have not answered everything, but this is a starting point.  Call
when you have reviewed and we can discuss further.

Sincerely,

George Richards
President, Creekside Builders, LLC

 - winmail.dat

Investment Structure


Investment Structure


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 09/26/2000
04:28 PM ---------------------------

"George Richards" <cbpres@austin.rr.com> on 09/26/2000 01:18:45 PM
Please respond to <cbpres@austin.rr.com>
To: "Phillip Allen" <pallen@enron.com>
cc: "Larry Lewter" <retwell@mail.sanmarcos.net>, "Claudia L. Crocker"
<clclegal2@aol.com>
Subject: Investment Structure

STRUCTURE:
Typically the structure is a limited partnership with a corporate (or LLC)
general partner.  The General Partner owns 1% of the project and carries the
liability of construction.

LAND OWNERSHIP & LOANS
The property would be purchased in the name of the limited partnership and
any land loans, land improvements loans and construction loans would be in
the name of the limited partnership.  Each of the individual investors and
all of the principals in Creekside would also personally guarantee the
loans.  If the investor(s) do not sign on the loans, this generally means
that a larger amount of cash is required and the investor's share of profits
is reduced.

All loans for residential construction, that are intended for re-sale, are
full recourse loans.  If we are pursuing multifamily rental developments,
the construction loans are still full recourse but the mortgage can often be
non-recourse.

USE OF INITIAL INVESTMENT
The initial investment is used for land deposit, engineering &
architectural design, soils tests, surveys, filing fees, legal fees for
organization and condominium association formation,  and appraisals.  Unlike
many real estate investment programs, none of the funds are used for fees to
Creekside Builders, LLC.  These professional expenses will be incurred over
the estimated 6 month design and approval period.

EARLY LAND COSTS
The $4,000 per month costs listed in the cash flow as part of land cost
represent the extension fees due to the seller for up to 4 months of
extensions on closing.  As an alternative, we can close into a land loan at
probably 70% of appraised value.  With a land value equal to the purchase
price of $680,000 this would mean a land loan of $476,000 with estimated
monthly interest payments of $3,966, given a 10% annual interest rate, plus
approximately 1.25% of the loan amount for closing costs and loan fees.

EQUITY AT IMPROVEMENT LOAN
Once the site plan is approved by the City of Austin, the City will require
the development entity to post funds for fiscal improvements, referred to as
the "fiscals".  This cost represents a bond for the completion of
improvements that COA considers vital and these funds are released once the
improvements have been completed and accepted by COA.  This release will be
for 90% of the cost with the remaining 10% released one year after
completion.  Releases can be granted once every 90 days and you should
expect that the release would occur 6 months after the start of lot
improvement construction.  These fiscals are usually posted in cash or an
irrevocable letter of credit.  As such, they have to be counted as a
development cost, even though they are not spent.  Because they are not
spent no interest is charged on these funds.

The lot improvement loan is typically 75% of the appraised value of a
finished lot, which I suspect will be at least $20,000 and potentially as
high as $25,000.  This would produce a loan amount of  $15,000 on $20,000
per lot.  With estimated per lot improvement costs of $9,000, 'fiscals' at
$2,000 and the land cost at $8,000 , total improved lot cost is $19,000
which means $0 to $4,000 per lot in total equity.  The investment prior to
obtaining the improvement loan would count towards any equity requirement
provided it was for direct costs.  Thus, the additional equity for the
improvement loan would be $0-$184,000.   Even if the maximum loan would
cover all costs, it is unlikely the bank would allow reimbursement of funds
spent. The higher estimates of equity investments are shown in the
preliminary proforma to be on the safe side.  The engineer is preparing a
tentative site layout with an initial evaluation of the phasing, which can
significantly reduce the cash equity requirement.

Phasing works as follows.  If the first phase was say 40 units, the total
lot improvement cost might average $31,000 per lot.   Of this, probably
$13,000 would be for improvements and $19,000 for the land cost.  The
improvements are higher to cover large one time up front costs for design
costs, the entry road, water treatment costs, perimeter fencing and
landscaping, and so on, as well as for 100% of the land.  The land loan for
undeveloped lots would be 70% of the appraised raw lot value, which I would
estimate as $10,000 per lot for a loan value of $7,000 per lot.  Then the
loan value for each improved lot would be $15,000 per lot.  This would give
you a total loan of $992,000, total cost of $1,232,645 for equity required
of $241,000.  This was not presented in the initial analysis as the phasing
is depended on a more careful assessment by the Civil Engineer as the
separate phases must each be able to stand on its own from a utility
standpoint.

CONSTRUCTION LOANS
There are three types of  construction loans.  First, is a speculative
(spec) loan that is taken out prior to any pre-sales activity.  Second,  is
a construction loan for a pre-sold unit, but the loan remains in the
builder/developers name.  Third, is a pre-sold unit with the construction
loan in the name of the buyer.  We expect to have up to 8 spec loans to
start the project and expect all other loans to be pre-sold units with loans
in the name of the builder/developer.  We do not expect to have any
construction loans in the name of the buyers, as such loans are too
difficult to manage and please new buyers unfamiliar with the process.

Spec loans will be for 70% to 75% of value and construction loans for
pre-sold units, if the construction loan is from the mortgage lender,  will
be from 80% to 95% of value.

DISBURSEMENTS
Disbursements will be handled by the General Partner to cover current and
near term third party costs, then to necessary reserves, then to priority
payments and then to the partners per the agreement.  The General Partner
will contract with Creekside Builders, LLC to construct the units and the
fee to CB will include a construction management and overhead fee equal to
15% of the direct hard cost excluding land, financing and sales costs.
These fees are the only monies to Creekside, Larry Lewter or myself prior to
calculation of profit, except for a) direct reimbursement for partnership
expenses and b) direct payment to CB for any subcontractor costs that it has
to perform.  For example, if CB cannot find a good trim carpenter sub, or
cannot find enough trim carpenters, etc., and it decides to undertake this
function, it will charge the partnership the same fee it was able to obtain
from third parties and will disclose those cases to the partnership.
Finally, CB will receive a fee for the use of any of its equipment if it is
used in lieu of leasing equipment from others.  At present CB does not own
any significant equipment, but it is considering the purchase of a sky track
to facilitate and speed up framing, cornice, roofing and drywall spreading.

REPORTING
We are more than willing to provide reports to track expenses vs. plan.
What did you have in mind?  I would like to use some form of internet based
reporting.

BOOKKEEPING
I am not sure what you are referring to by the question, "Bookkeeping
procedures to record actual expenses?"  Please expand.

INVESTOR INPUT
We are glad to have the investor's input on design and materials.  As always
the question will be who has final say if there is disagreement, but in my
experience I have always been able to reach consensus. As you, and I presume
Keith, want to be involved to learn as much as possible we would make every
effort to be accommodating.

CREEKSIDE PROCEEDURES
CB procedures for dealing with subs, vendors and professionals is not as
formal as your question indicates.  In the EXTREMELY tight labor market
obtaining 3 bids for each labor trade is not feasible.  For the professional
subs we use those with whom we have developed a previous rapport.  Finally,
for vendors they are constantly shopped.

PRE-SELECTED PROFESSIONALS, SUBS AND VENDORS
Yes there are many different subs that have been identified and I can
provide these if you are interested.

I know I have not answered everything, but this is a starting point.  Call
when you have reviewed and we can discuss further.

Sincerely,

George Richards
President, Creekside Builders, LLC

 - winmail.dat

Investment Structure


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 10/24/2000
01:29 PM ---------------------------

"George Richards" <cbpres@austin.rr.com> on 09/26/2000 01:18:45 PM
Please respond to <cbpres@austin.rr.com>
To: "Phillip Allen" <pallen@enron.com>
cc: "Larry Lewter" <retwell@mail.sanmarcos.net>, "Claudia L. Crocker"
<clclegal2@aol.com>
Subject: Investment Structure

STRUCTURE:
Typically the structure is a limited partnership with a corporate (or LLC)
general partner.  The General Partner owns 1% of the project and carries the
liability of construction.

LAND OWNERSHIP & LOANS
The property would be purchased in the name of the limited partnership and
any land loans, land improvements loans and construction loans would be in
the name of the limited partnership.  Each of the individual investors and
all of the principals in Creekside would also personally guarantee the
loans.  If the investor(s) do not sign on the loans, this generally means
that a larger amount of cash is required and the investor's share of profits
is reduced.

All loans for residential construction, that are intended for re-sale, are
full recourse loans.  If we are pursuing multifamily rental developments,
the construction loans are still full recourse but the mortgage can often be
non-recourse.

USE OF INITIAL INVESTMENT
The initial investment is used for land deposit, engineering &
architectural design, soils tests, surveys, filing fees, legal fees for
organization and condominium association formation,  and appraisals.  Unlike
many real estate investment programs, none of the funds are used for fees to
Creekside Builders, LLC.  These professional expenses will be incurred over
the estimated 6 month design and approval period.

EARLY LAND COSTS
The $4,000 per month costs listed in the cash flow as part of land cost
represent the extension fees due to the seller for up to 4 months of
extensions on closing.  As an alternative, we can close into a land loan at
probably 70% of appraised value.  With a land value equal to the purchase
price of $680,000 this would mean a land loan of $476,000 with estimated
monthly interest payments of $3,966, given a 10% annual interest rate, plus
approximately 1.25% of the loan amount for closing costs and loan fees.

EQUITY AT IMPROVEMENT LOAN
Once the site plan is approved by the City of Austin, the City will require
the development entity to post funds for fiscal improvements, referred to as
the "fiscals".  This cost represents a bond for the completion of
improvements that COA considers vital and these funds are released once the
improvements have been completed and accepted by COA.  This release will be
for 90% of the cost with the remaining 10% released one year after
completion.  Releases can be granted once every 90 days and you should
expect that the release would occur 6 months after the start of lot
improvement construction.  These fiscals are usually posted in cash or an
irrevocable letter of credit.  As such, they have to be counted as a
development cost, even though they are not spent.  Because they are not
spent no interest is charged on these funds.

The lot improvement loan is typically 75% of the appraised value of a
finished lot, which I suspect will be at least $20,000 and potentially as
high as $25,000.  This would produce a loan amount of  $15,000 on $20,000
per lot.  With estimated per lot improvement costs of $9,000, 'fiscals' at
$2,000 and the land cost at $8,000 , total improved lot cost is $19,000
which means $0 to $4,000 per lot in total equity.  The investment prior to
obtaining the improvement loan would count towards any equity requirement
provided it was for direct costs.  Thus, the additional equity for the
improvement loan would be $0-$184,000.   Even if the maximum loan would
cover all costs, it is unlikely the bank would allow reimbursement of funds
spent. The higher estimates of equity investments are shown in the
preliminary proforma to be on the safe side.  The engineer is preparing a
tentative site layout with an initial evaluation of the phasing, which can
significantly reduce the cash equity requirement.

Phasing works as follows.  If the first phase was say 40 units, the total
lot improvement cost might average $31,000 per lot.   Of this, probably
$13,000 would be for improvements and $19,000 for the land cost.  The
improvements are higher to cover large one time up front costs for design
costs, the entry road, water treatment costs, perimeter fencing and
landscaping, and so on, as well as for 100% of the land.  The land loan for
undeveloped lots would be 70% of the appraised raw lot value, which I would
estimate as $10,000 per lot for a loan value of $7,000 per lot.  Then the
loan value for each improved lot would be $15,000 per lot.  This would give
you a total loan of $992,000, total cost of $1,232,645 for equity required
of $241,000.  This was not presented in the initial analysis as the phasing
is depended on a more careful assessment by the Civil Engineer as the
separate phases must each be able to stand on its own from a utility
standpoint.

CONSTRUCTION LOANS
There are three types of  construction loans.  First, is a speculative
(spec) loan that is taken out prior to any pre-sales activity.  Second,  is
a construction loan for a pre-sold unit, but the loan remains in the
builder/developers name.  Third, is a pre-sold unit with the construction
loan in the name of the buyer.  We expect to have up to 8 spec loans to
start the project and expect all other loans to be pre-sold units with loans
in the name of the builder/developer.  We do not expect to have any
construction loans in the name of the buyers, as such loans are too
difficult to manage and please new buyers unfamiliar with the process.

Spec loans will be for 70% to 75% of value and construction loans for
pre-sold units, if the construction loan is from the mortgage lender,  will
be from 80% to 95% of value.

DISBURSEMENTS
Disbursements will be handled by the General Partner to cover current and
near term third party costs, then to necessary reserves, then to priority
payments and then to the partners per the agreement.  The General Partner
will contract with Creekside Builders, LLC to construct the units and the
fee to CB will include a construction management and overhead fee equal to
15% of the direct hard cost excluding land, financing and sales costs.
These fees are the only monies to Creekside, Larry Lewter or myself prior to
calculation of profit, except for a) direct reimbursement for partnership
expenses and b) direct payment to CB for any subcontractor costs that it has
to perform.  For example, if CB cannot find a good trim carpenter sub, or
cannot find enough trim carpenters, etc., and it decides to undertake this
function, it will charge the partnership the same fee it was able to obtain
from third parties and will disclose those cases to the partnership.
Finally, CB will receive a fee for the use of any of its equipment if it is
used in lieu of leasing equipment from others.  At present CB does not own
any significant equipment, but it is considering the purchase of a sky track
to facilitate and speed up framing, cornice, roofing and drywall spreading.

REPORTING
We are more than willing to provide reports to track expenses vs. plan.
What did you have in mind?  I would like to use some form of internet based
reporting.

BOOKKEEPING
I am not sure what you are referring to by the question, "Bookkeeping
procedures to record actual expenses?"  Please expand.

INVESTOR INPUT
We are glad to have the investor's input on design and materials.  As always
the question will be who has final say if there is disagreement, but in my
experience I have always been able to reach consensus. As you, and I presume
Keith, want to be involved to learn as much as possible we would make every
effort to be accommodating.

CREEKSIDE PROCEEDURES
CB procedures for dealing with subs, vendors and professionals is not as
formal as your question indicates.  In the EXTREMELY tight labor market
obtaining 3 bids for each labor trade is not feasible.  For the professional
subs we use those with whom we have developed a previous rapport.  Finally,
for vendors they are constantly shopped.

PRE-SELECTED PROFESSIONALS, SUBS AND VENDORS
Yes there are many different subs that have been identified and I can
provide these if you are interested.

I know I have not answered everything, but this is a starting point.  Call
when you have reviewed and we can discuss further.

Sincerely,

George Richards
President, Creekside Builders, LLC

 - winmail.dat

Investment Structure


Mark:
You've called it right thus far.

Let's plan to get a drink after work on the 19th.
Thanks,
John

"Mark Sagel" <msagel@home.com> on 09/26/2000 10:23:06 AM
To: "John Arnold" <jarnold@enron.com>
cc:
Subject: natural update

John:
?
I wish I had a lot to pass along, but not much has changed on  my work.? All
the analysis is still very bullish and expecting higher  levels.? I am
receiving hourly "9" type strength patterns, which means the  up move must
consistently continue from here.? Any drop under today's lows  is a negative
for natural.? On my daily work, natural will see a new type  of strength
pattern today.? It is not a "9" type topping pattern, but one  that normally
comes out along the way as price moves higher.? This would  suggest a
potential short-term high over the next 2-3 days, but nothing of major
importance.
?
I have tentative plans to be in Houston on Thursday, October  19.? Are you
interested in meeting so that I may show in much greater  detail what the
work is doing and how it can enhance your activity?? Let me  know if that day
works for you.? Thanks,
?
Mark Sagel
Psytech Analytics
(410)308-0245
msagel@home.com
?

Re: natural update


Re: natural update


Mark:
Let's keep the present system for the short-term.  I would like to continue
looking at your work for another couple weeks.  We'll talk later,
John

"Mark Sagel" <msagel@home.com> on 10/03/2000 02:29:47 PM
To: "John Arnold" <jarnold@enron.com>
cc:
Subject: Natural update

John:
?
The price behavior of the past couple days has been  disappointing.? My
short-term market patterns suggested a more robust price  rally and natural
appears to be waning at present.? Volume on this rally is  poor, particularly
since yesterday was a decent day to the upside.? The  market appears to be
using a lot of its energy but spinning its wheels.? If  we are at these same
price levels in another two weeks, that would be extremely  bullish.? Right
here, the risk/reward to being long is not so great.?  Recommend a neutral
stance short-term on natural.? Bigger picture is still  very bullish.?
However, this market needs another 1-2 weeks of what I would  call horizontal
price action to set the stage for a big move to the  upside.
?
Let me know if this stuff is useful for you.? I certainly  don't want to
waste your time.? In addition, if you prefer I call when I  have something to
pass along, let me know.? I don't know how often you  check/see your e-mail.?
Thanks,
?
Mark Sagel

Re: Natural update


Re: Natural update


Mark:
We are still on for drinks on the 19th.  You have called the market very well
since you started sending me updates.  Unfortunately for both of us, a couple
of good calls does not a soothsayer make.  Thus, keep sending me your updates
so I can at least get a little broader judgment of your abilities.   In terms
of my trading style, I take positions to make $.25-$1, not $.05.  Too much
noise in this market to trade differently for me.

"Mark Sagel" <msagel@home.com> on 10/04/2000 02:55:41 PM
To: <John.Arnold@enron.com>
cc:
Subject: Re: Natural update

John:

I hope you know I was just fishing for a reaction on the phone before.  I
assumed we would discuss a potential relationship when I'm in Houston on the
19th.  We're still on for drinks after work, right?  By then, you should
have a comfort level with the quality of my work.  I think the analysis I've
given you has been quite accurate as to market turns and price behavior.  It
would be helpful if I had some idea of how you trade/view the market.  Are
you mainly day-trading or do you hold positions for several days/weeks?
That way I can structure my comments in order to best serve your interests.
Let me know.  Thanks,
----- Original Message -----
From: <John.Arnold@enron.com>
To: <msagel@home.com>
Sent: Wednesday, October 04, 2000 9:14 AM
Subject: Re: Natural update

Mark:
Let's keep the present system for the short-term.  I would like to continue
looking at your work for another couple weeks.  We'll talk later,
John

"Mark Sagel" <msagel@home.com> on 10/03/2000 02:29:47 PM

To:   "John Arnold" <jarnold@enron.com>
cc:
Subject:  Natural update

John:

The price behavior of the past couple days has been  disappointing. My
short-term market patterns suggested a more robust price  rally and natural
appears to be waning at present. Volume on this rally is  poor,
particularly since yesterday was a decent day to the upside. The  market
appears to be using a lot of its energy but spinning its wheels. If  we
are at these same price levels in another two weeks, that would be
extremely  bullish. Right here, the risk/reward to being long is not so
great.   Recommend a neutral stance short-term on natural. Bigger picture
is still  very bullish. However, this market needs another 1-2 weeks of
what I would  call horizontal price action to set the stage for a big move
to the  upside.

Let me know if this stuff is useful for you. I certainly  don't want to
waste your time. In addition, if you prefer I call when I  have something
to pass along, let me know. I don't know how often you  check/see your
e-mail. Thanks,

Mark Sagel

Re: Natural update


---------------------- Forwarded by John Arnold/HOU/ECT on 02/04/2001 09:12
PM ---------------------------

"Mark Sagel" <msagel@home.com> on 02/04/2001 09:03:25 PM
To: "John Arnold" <jarnold@enron.com>
cc:
Subject: Natural update

?
 - ng2001-0204.doc

Natural update


Natural update


---------------------- Forwarded by John Arnold/HOU/ECT on 02/12/2001 07:29
AM ---------------------------

"Mark Sagel" <msagel@home.com> on 02/11/2001 08:00:51 PM
To: "John Arnold" <jarnold@enron.com>
cc:
Subject: Natural update

FYI
 - ng2001-0211.doc

Natural update


---------------------- Forwarded by John Arnold/HOU/ECT on 02/25/2001 06:28
PM ---------------------------

"Mark Sagel" <msagel@home.com> on 02/25/2001 06:26:01 PM
To: "John Arnold" <jarnold@enron.com>
cc:
Subject: Natural update

Latest natural update
 - ng022601.doc

Natural update


---------------------- Forwarded by John Arnold/HOU/ECT on 04/30/2001 09:30
AM ---------------------------

"Mark Sagel" <msagel@home.com> on 04/29/2001 06:50:29 PM
To: "John Arnold" <jarnold@enron.com>
cc:
Subject: natural update

Latest comments FYI
 - ng042901.doc

natural update


natural update


82

michael.byrne@americas.bnpparibas.com on 10/11/2000 08:17:21 AM
To: michael.byrne@americas.bnpparibas.com
cc:
Subject: BNP PARIBAS Commodity Futures Weekly AGA Survey

Good Morning,

Just a reminder to get your AGA estimates in by Noon EST (11:00 CST) TODAY.

Last Year      +49
Last Week      +78

Thanks,
Michael Byrne
BNP PARIBAS Commodity Futures

______________________________________________________________________________
_______________________________________________________

Ce message et toutes les pieces jointes (ci-apres le "message") sont etablis
a l'intention exclusive de ses destinataires et sont confidentiels. Si vous
recevez ce message par erreur, merci de le detruire et d'en avertir
immediatement l'expediteur.

Toute utilisation de ce message non conforme a sa destination, toute
diffusion ou toute publication, totale ou partielle, est interdite, sauf
autorisation expresse.

L'internet ne permettant pas d'assurer l'integrite de ce message, BNP PARIBAS
(et ses filiales) decline(nt) toute responsabilite au titre de ce message,
dans l'hypothese ou il aurait ete modifie.

------------------------------------------------------------------------------
----
This message and any attachments (the "message") are intended solely for the
addressees and are confidential. If you receive this message in error, please
delete it and immediately notify the sender.

Any use not in accord with its purpose, any dissemination or disclosure,
either whole or partial, is prohibited except formal approval.

The internet can not guarantee the integrity of this message. BNP PARIBAS
(and its subsidiaries) shall (will) not therefore be liable for the message
if modified.
______________________________________________________________________________
_______________________________________________________

Re: BNP PARIBAS Commodity Futures Weekly AGA Survey


34

michael.byrne@americas.bnpparibas.com on 10/18/2000 08:21:15 AM
To: michael.byrne@americas.bnpparibas.com
cc:
Subject: BNP PARIBAS Commodity Futures Weekly AGA Survey

Good Morning,

Just a reminder to get your AGA estimates in by Noon EST (11:00 CST) TODAY.

Last Year      +42
Last Week      +62

Thanks,
Michael Byrne
BNP PARIBAS Commodity Futures

______________________________________________________________________________
_______________________________________________________

Ce message et toutes les pieces jointes (ci-apres le "message") sont etablis
a l'intention exclusive de ses destinataires et sont confidentiels. Si vous
recevez ce message par erreur, merci de le detruire et d'en avertir
immediatement l'expediteur.

Toute utilisation de ce message non conforme a sa destination, toute
diffusion ou toute publication, totale ou partielle, est interdite, sauf
autorisation expresse.

L'internet ne permettant pas d'assurer l'integrite de ce message, BNP PARIBAS
(et ses filiales) decline(nt) toute responsabilite au titre de ce message,
dans l'hypothese ou il aurait ete modifie.

------------------------------------------------------------------------------
----
This message and any attachments (the "message") are intended solely for the
addressees and are confidential. If you receive this message in error, please
delete it and immediately notify the sender.

Any use not in accord with its purpose, any dissemination or disclosure,
either whole or partial, is prohibited except formal approval.

The internet can not guarantee the integrity of this message. BNP PARIBAS
(and its subsidiaries) shall (will) not therefore be liable for the message
if modified.
______________________________________________________________________________
_______________________________________________________


94

michael.byrne@americas.bnpparibas.com on 02/28/2001 07:13:22 AM
To: michael.byrne@americas.bnpparibas.com
cc:
Subject: BNP PARIBAS Commodity Futures Weekly AGA Survey

Good Morning,

Just a reminder to get your AGA estimates in by Noon EST (11:00 CST) TODAY.

Last Year      -74
Last Week      -81

Thanks,
Michael Byrne
BNP PARIBAS Commodity Futures

______________________________________________________________________________
_______________________________________________________

Ce message et toutes les pieces jointes (ci-apres le "message") sont etablis
a l'intention exclusive de ses destinataires et sont confidentiels. Si vous
recevez ce message par erreur, merci de le detruire et d'en avertir
immediatement l'expediteur.

Toute utilisation de ce message non conforme a sa destination, toute
diffusion ou toute publication, totale ou partielle, est interdite, sauf
autorisation expresse.

L'internet ne permettant pas d'assurer l'integrite de ce message, BNP PARIBAS
(et ses filiales) decline(nt) toute responsabilite au titre de ce message,
dans l'hypothese ou il aurait ete modifie.

------------------------------------------------------------------------------
----
This message and any attachments (the "message") are intended solely for the
addressees and are confidential. If you receive this message in error, please
delete it and immediately notify the sender.

Any use not in accord with its purpose, any dissemination or disclosure,
either whole or partial, is prohibited except formal approval.

The internet can not guarantee the integrity of this message. BNP PARIBAS
(and its subsidiaries) shall (will) not therefore be liable for the message
if modified.
______________________________________________________________________________
_______________________________________________________


67

george.ellis@americas.bnpparibas.com on 03/07/2001 09:39:04 AM
To: george.ellis@americas.bnpparibas.com
cc:
Subject: BNP PARIBAS Commodity Futures Weekly AGA Survey

Good Morning,

Just a reminder to get your AGA estimates in by Noon EST (11:00 CST) TODAY.

Last Year      -37
Last Week      -101

Thanks,
George Ellis
BNP PARIBAS Commodity Futures, Inc.

______________________________________________________________________________
_______________________________________________________

Ce message et toutes les pieces jointes (ci-apres le "message") sont etablis
a l'intention exclusive de ses destinataires et sont confidentiels. Si vous
recevez ce message par erreur, merci de le detruire et d'en avertir
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71

george.ellis@americas.bnpparibas.com on 03/14/2001 08:18:25 AM
To: george.ellis@americas.bnpparibas.com
cc:
Subject: BNP PARIBAS Commodity Futures Weekly AGA Survey

Good Morning,

Just a reminder to get your AGA estimates in by Noon EST (11:00 CST) TODAY.

Last Year      -31
Last Week      -73

Thank You,
George Ellis
BNP PARIBAS Commodity Futures, Inc.

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pira's certainly got the whole market wound up.  I've seen a wave of producer
selling for the first time in two months over the past two days.  Most
selling Cal 1 off the back of Pira.  Pira certainly commands a lot of respect
these days.  Too much, probably.
The problem with all these bull spreads (ie F-H) is the thought process in
natty is that if Jan is strong, just think what happens when you get to March
and run out of gas.  The spread game is very different than playing crude.
These spreads haven't moved for the past 1000 point runup.  You know there
were guys bullish this market trying to play it with spreads and haven't made
a penny.
Just to clarify, Pira said 3 bcf y on y for Z1?  That seems hard to believe.

slafontaine@globalp.com on 10/13/2000 09:42:43 AM
To: jarnold@enron.com
cc:
Subject: mkts

cmon give me some credit-you think ive been doing this this long w/out know
who's doing what! im i ny for the pira conference-thyre pretty bearish cal 01
and 02-will be interesting to see if/when the producers start to take that to
heart. here's one for you to think about... of pira's rite-ie production gonna
be up 1-1.5 bcf by year end. does increased deliverabilty mean these winter
sprds in producing areas-ie jan-apr and the fact the mkts gonna be more
concerened about running out in march than in jan suggest big invererese will
not be sustainable but will happen only on a weather event??? be curoius your
thots-i maybe thinking too much but makes some sense to me-have a good weekend
johnny.
pira says decm 01 prod up 3 bcf y on y!

Re: mkts


Re: mkts


It's funny the spreads in gas.  First, in gas, you can play the seasonality
game.  Does anybody want to buy M/N at 1 back.  No, of course not.  But in
crude, m/n at .10 back is normal.  definitely a game as you try to keep month
on month spreads somewhat within reason while preserving year on year spreads
and creating equilibrium for where cal 2 on back hedging and spec demand is.
that's why cal 2 is as high as it is.
when was the last time the most bullish part of the nat gas curve was prompt
month.  i can't remember w/o looking at charts.  it's always the mentality
of: if it's tight now what about July or what about winter.  i think that's
why the winter spreads are a piece.  the z/f/g fly is interesting.  i think
z/f can and will settle backw.  just a high prob it goes cantango first.
Still seeing sellside interest in term.  definitely a result of pira.  will
probably get absorbed in the next two weeks as everybody forgets about them
and watches the front of the curve.  previous to that conference, the
producers just didnt want to sell anything.  tired of writing us a big check
every month.
so not only am i in on weekends, but they just put a computer in my house so
i can work at home at night.  it's really my only time to sit and think
without the phones and eol going crazy.  they better pay me for the decline
in my lifestyle .

slafontaine@globalp.com on 10/15/2000 09:26:31 PM
To: John.Arnold@enron.com
cc:
Subject: Re: mkts

what is a young pup like you doing working on saturday? yea ill check again
the
numbers but pretty sure they said  +3 bcf by dec. ill let you  know/its been
along week/weekend of partying in ny so my memory mite be failing me. i know
this isnt same as crude-less mature but getting there so im always wondering
if/when the mentality will start to go more that way-ie inverses shud be for
only 1 reason-that supply/demand balance will get less tite than it is today.
    some length has gotten out of winter sprds but i know from a few i talk
too
they still in-im out even slitely short not much cuz i think growing
deliverabilty if it occurs is bearish the sprds-and 30 cts inverses will be
hard
to maintain unless we have crazy weather. we're only 2 weeks from withdrawel
period so unitl i see cash backwardate im not gonna be bullish these sprds
until
all the length bails.
    your rite on the mkt-the anticipation is in the mkt-you gotta have flat px
to make money,my approach in the short term as well. that said everyone at
pira
including pira all bull bull the winter-will be good i think for a
win/sum01/win02 inverse play even tho its not cheap.
   fyi-pira also bearish crude-not saying they rite but will have impact on
natgas producers sentiment short term-esp as mideast starts to fiad. for you
be
careful of the politics effecting heating oil, natgas watching too. there will
be some action in my opinion next 4 weeks by govt that cud impact ho futs
negatively and therefore may roll to natgas-ie if ho goes a big discount to
natgas before any major cold-gas will get hit i think. if i hear anything on
oil
side ill be happy to pass it on-apprec comment on producers not that im
surpirsed, wonder if they start going out further esp with forward sparks
getting hit lately??
   good luck man-talk soon. pira was good. you go next year ill set up you
some
interesting people,good to network cuz we never know where we'll end up.
    by the way-you bullish sum 02/win 02 or are you rolling a short? non of my
biz but i was on the other side-ill add if it narrows more. inkjections next
summer will be huge albeit from low stx-curve will mean revert eventually.

Re: mkts


Hey:
Haven't had the best of months.  Like you had some good positions but others
wiped out everything.  Unbelievable how the whole curve moves as one for 6
months and then separates completely.  The z/f/g and f/g/h flies are
amazing.  Something definitely out of whack.  Hard to believe cash in Z will
be cantango to F and front spread, F/G, will be 40.  Spreads definitely
implying we will see some $10+ prints on daily cash at the hub this winter.
Hell, already seeing it in the West.  The system is just broken there.
interesting to see if it is a sign of what can come in the east later.
definitely more flexibility in the east so the blowouts won't occur until
latter part of the winter.   the inelasticity of demand continues to be
unbelievable.  who would have thunk it.   Gas can be 3 times what it was one
year ago and not a significant loss of demand.
market definitely trained to buy the dips at this point.  continues to be a
very trending market.  most days finish on the intraday high or low.
Pira told the boys to hedge jv and cal 2 and the impact has been
significant.  i quote bids on term strips 5 times a day.   understand they
are changing their view somewhat tomorrow.  wait and see if it relieves some
back pressure.  very surprised at lack of spec long interest in jv at 4.5
considering the scenario that's being painted.

slafontaine@globalp.com on 11/21/2000 01:06:40 PM
To: jarnold@enron.com
cc:
Subject: re:mkts

johnny, hope things re treating you well. this month has been frustrating for
me-generally caught many mkt moves but had 2 postions that nearly cancelled
all
the rest. im finding it really really hard to assess risk now in oil and gas
therefore im taking a step back esp in front of holidays and year end. was
long
mar gas vs backs which worked great but i took profits waayyy too early
  flat px i think is pretty clear-if weather stays normal to below we keep a
flaoor at 5.80-6.00 bucks for another 40 days at least. if we have sustained
aboves we drop like a rock in part due to back en d pressure.

   but spreads-what the hell do we do with em?????????? was just saying to
mark
silverman there is a huge opportunity here staring us in the face but i hve no
idea what it is-i have equal arguements for why sprds shud fall or move out.
any
great insites? hope all is well and enjoy the long weeknd-we both deserve it.
   guess the curve will stop blowing out when/if we see the back end selling
dry
up??

re:mkts


re:mkts


Z/F !!!!   wow.    Who would have thunk it.  Prompt gas at $6+ and Z/F as
wide as last year.  Hard to think of a better scenario for it to flip.
Rather, hard to think of any scenario for any z/f to be contango.   if it
couldn't do it this year....
A lot of boys max withdrawing out of storage because that's what the curve
told them to do last bid week.  Obviously, more gas trying to come out than
is being burned, so you have to incentivize an economic player, like an
Enron, to inject.  Problem is if we stick it in the ground now, we're pulling
it out in G.  When you had z/g at 35 back and cash getting priced off g,
cash/z looks awfully weak, thus putting a lot of pressure on z/f.  Storage
economics will always dictate this market except maybe latter half of
winter.  Buyers of h/j at 70 certainly hope so anyways.
Agree with you that back half of the winter should be strong.  storage boys
are withdrawing today and buying that.   bottom fishing in f/g yet or is it
going to zero?

slafontaine@globalp.com on 11/22/2000 06:50:46 AM
To: John.Arnold@enron.com
cc:
Subject: re:mkts

agree on jan/feb-i cudnt resist sold a little yest at 39-will prob end up
buying
em back at +45 and piss away the rest of my month

fyi-if you ever have a chance to speak on the phone feel free to call-my time
is
busy but managed only by me not paper flow and eol. so i dont bother you with
calls just an occasional email to give you the time to respond when you have
the
time. im also susprised about dec/jan-mad a few bucks trading it both ways but
one cant help wonder given these loads-gass crazy out west-the so called
impact
of husbanding by end users yet the frontn of the curve still cant backwardate
at
all-indeed makes all the sprds look very rich agaon.
   also will be curious how these "loan deals" by pipes work ouut. man these
guys cud really be getting themselves in trouble-another big reason dec cash
hasnt been able to go over jan-but i think it will make them strong longs in
the
back of the mkt?? ie are they taking the gas back in march, april?? shud keep
that part of the curve very strong agree?
  be cool my man-talk later

re:mkts


Good to hear from you.
After a great F, had an okay G.  Held a lot of term length on the risk/reward
play.  Figured if we got no weather, all the customer and generator buying
would be my stop.  It was.  Amazing that for the drop in price in H, the
strips have really gone nowhere.  just a big chop fest.
i here your arguments, but think they are way exagerated.  Agree with 1.5-2
bcf/d more supply. Call it 2 with LNG.  Imports from Canada should be
negligible.  Now let's assume price for the summer is $4.  No switching, full
liquids extraction, methanol and fertilizer running.  Electric generation
demand, considering problems in west and very low hydro, around 1.5 bcf/d
greater this year with normal weather.  Means you have to price 2 bcf/d out
of market.  Don't think $4 does that.  What level did we start really losing
demand last year?  It was higher than 4.   concerned about recession in
industrial sector thats occuring right now.
Think gas is fairly valued here.  Dont think we're going to 7.  But I think
fear of market considering what happened this past year will keep forward
curve very well supported through spring.  we're already into storage
economics so the front goes where the forward curve wants to go.

slafontaine@globalp.com on 02/26/2001 04:48:06 PM
To: jarnold@enron.com
cc:
Subject: mkts

its been a while-hope all is well. not a great few weeks for me in ngas-not
awful just nothing really working for me and as you know got in front of
march/apr a cupla times, no disasters.
   well im bearish-i hate to be so after a 4 buck drop but as i said a month
ago
to you-and now pira coming around. 5.00 gas is a disaster for the natgas
demand.
now production up strongly y on y...you guys agree on the production side?
  i know youve been bullish the summer-think im stll in the minority-but here
you go, we have y on y supplly up 2/bcf+ demnad loss 3.5bcf/d, 5.5 bcf/day y
on
y swing . then i submit as we started to see due huge rate increases R/C
demandd
energy conservation will be even more dramatic this summer which will effect
utilty demand/power demand ulitmately.  if pira rite we lost 1.56 in jan for
this factor i say it cud be bigger this summer as ute loads increase, power
pxes
rise and consumers become poorer. there will be more demand flexibilty in the
summer part in the midcon and north as AC is more of a luxury item than heat.
i
say 5-6% lower use in residentail/utilty power consumption due rationing is
another .7/1bcf/d loss.
  put all this together we wud build an addional 1284 apr thru oct on top of
last years 1715  build basis last year temps and todays prices. takes us to
3.6
tcf or so. what am i missing my man-summer has to go to 4 bucks or lower to
restore demand??? thots.

as far as that other thing, the p&c its still alive, shud know more soon and
ill
keep you posted.

Re: mkts


but that's my point.  the demand destruction roared its ugly head beginning
of Jan.  The price level was $9.  Of course there is a lag.  Let's make up a
lag time...say one month.   On Dec 1 cash was trading $6.70.  Probably a
similar lag on the way down.  Cash is $5.20 today.  How much lost demand will
there be in a month if we're still $5.2?   million dollar question if you can
answer that.

slafontaine@globalp.com on 02/27/2001 08:12:32 PM
To: John.Arnold@enron.com
cc:
Subject: Re: mkts

off the cuff i wud say tho same goes for 5.00 gas-currently 6-7 bcf/day swing
y
on y too much, to buy this level you need to take the view that industrial
america and residential and end users will be able to get back on their feet
and
recocover a lion share of the 4-4.5 bcf/d demand destruction(this assumes as
current. very little if any dist fuel switching. i think the answer is no-not
unless the economy was jump starter quickly-2nd q is gone,so maybe th 4q.
 remember the demand destruction and industrial shit really just started only
6
weeks ago-me thinks it will take longer than that to get back into full swing.
we all trade the y on y gap...all things remaining equal(ie term px for the
summer), starting april we'll have a surplus the other way by july barring a
greenhouse in the ohio valley
    good to hear your view pt as always-even if it is wrong!!! ha

John.Arnold@enron.com on 02/27/2001 08:23:22 PM

To:   Steve LaFontaine/GlobalCo@GlobalCo
cc:
Fax to:
Subject:  Re: mkts

Good to hear from you.
After a great F, had an okay G.  Held a lot of term length on the
risk/reward play.  Figured if we got no weather, all the customer and
generator buying would be my stop.  It was.  Amazing that for the drop in
price in H, the strips have really gone nowhere.  just a big chop fest.
i here your arguments, but think they are way exagerated.  Agree with 1.5-2
bcf/d more supply. Call it 2 with LNG.  Imports from Canada should be
negligible.  Now let's assume price for the summer is $4.  No switching,
full liquids extraction, methanol and fertilizer running.  Electric
generation demand, considering problems in west and very low hydro, around
1.5 bcf/d greater this year with normal weather.  Means you have to price 2
bcf/d out of market.  Don't think $4 does that.  What level did we start
really losing demand last year?  It was higher than 4.   concerned about
recession in industrial sector thats occuring right now.
Think gas is fairly valued here.  Dont think we're going to 7.  But I think
fear of market considering what happened this past year will keep forward
curve very well supported through spring.  we're already into storage
economics so the front goes where the forward curve wants to go.

slafontaine@globalp.com on 02/26/2001 04:48:06 PM

To:   jarnold@enron.com
cc:
Subject:  mkts

its been a while-hope all is well. not a great few weeks for me in ngas-not
awful just nothing really working for me and as you know got in front of
march/apr a cupla times, no disasters.
   well im bearish-i hate to be so after a 4 buck drop but as i said a
month ago
to you-and now pira coming around. 5.00 gas is a disaster for the natgas
demand.
now production up strongly y on y...you guys agree on the production side?
  i know youve been bullish the summer-think im stll in the minority-but
here
you go, we have y on y supplly up 2/bcf+ demnad loss 3.5bcf/d, 5.5 bcf/day
y on
y swing . then i submit as we started to see due huge rate increases R/C
demandd
energy conservation will be even more dramatic this summer which will
effect
utilty demand/power demand ulitmately.  if pira rite we lost 1.56 in jan
for
this factor i say it cud be bigger this summer as ute loads increase, power
pxes
rise and consumers become poorer. there will be more demand flexibilty in
the
summer part in the midcon and north as AC is more of a luxury item than
heat. i
say 5-6% lower use in residentail/utilty power consumption due rationing is
another .7/1bcf/d loss.
  put all this together we wud build an addional 1284 apr thru oct on top
of
last years 1715  build basis last year temps and todays prices. takes us to
3.6
tcf or so. what am i missing my man-summer has to go to 4 bucks or lower to
restore demand??? thots.

as far as that other thing, the p&c its still alive, shud know more soon
and ill
keep you posted.

Re: mkts


industrial demand the scary thing.  no question there are some steel mills
and auto factories and plastics plants that were on last november that arent
coming up now and its not due to gas prices.  the economy sucks and it will
affect ind demand.

slafontaine@globalp.com on 02/28/2001 08:03:43 AM
To: John.Arnold@enron.com
cc:
Subject: Re: mkts

at least a myn dollars-need to talk to pira on that. excellant point. need to
do
some margin analyses . having said all that look at corporate earnings from
last
year to this year regardless of natgas costs as a feed industrials will be
running slower and consumers just now feeling the pinch as rate increases have
only just recently gotten approved and passed to the likes of us and people
less
fortunate than us.

John.Arnold@enron.com on 02/27/2001 11:05:40 PM

To:   Steve LaFontaine/GlobalCo@GlobalCo
cc:
Fax to:
Subject:  Re: mkts

but that's my point.  the demand destruction roared its ugly head beginning
of Jan.  The price level was $9.  Of course there is a lag.  Let's make up
a lag time...say one month.   On Dec 1 cash was trading $6.70.  Probably a
similar lag on the way down.  Cash is $5.20 today.  How much lost demand
will there be in a month if we're still $5.2?   million dollar question if
you can answer that.

slafontaine@globalp.com on 02/27/2001 08:12:32 PM

To:   John.Arnold@enron.com
cc:
Subject:  Re: mkts

off the cuff i wud say tho same goes for 5.00 gas-currently 6-7 bcf/day
swing y
on y too much, to buy this level you need to take the view that industrial
america and residential and end users will be able to get back on their
feet and
recocover a lion share of the 4-4.5 bcf/d demand destruction(this assumes
as
current. very little if any dist fuel switching. i think the answer is
no-not
unless the economy was jump starter quickly-2nd q is gone,so maybe th 4q.
 remember the demand destruction and industrial shit really just started
only 6
weeks ago-me thinks it will take longer than that to get back into full
swing.
we all trade the y on y gap...all things remaining equal(ie term px for the
summer), starting april we'll have a surplus the other way by july barring
a
greenhouse in the ohio valley
    good to hear your view pt as always-even if it is wrong!!! ha

John.Arnold@enron.com on 02/27/2001 08:23:22 PM

To:   Steve LaFontaine/GlobalCo@GlobalCo
cc:
Fax to:
Subject:  Re: mkts

Good to hear from you.
After a great F, had an okay G.  Held a lot of term length on the
risk/reward play.  Figured if we got no weather, all the customer and
generator buying would be my stop.  It was.  Amazing that for the drop in
price in H, the strips have really gone nowhere.  just a big chop fest.
i here your arguments, but think they are way exagerated.  Agree with 1.5-2
bcf/d more supply. Call it 2 with LNG.  Imports from Canada should be
negligible.  Now let's assume price for the summer is $4.  No switching,
full liquids extraction, methanol and fertilizer running.  Electric
generation demand, considering problems in west and very low hydro, around
1.5 bcf/d greater this year with normal weather.  Means you have to price 2
bcf/d out of market.  Don't think $4 does that.  What level did we start
really losing demand last year?  It was higher than 4.   concerned about
recession in industrial sector thats occuring right now.
Think gas is fairly valued here.  Dont think we're going to 7.  But I think
fear of market considering what happened this past year will keep forward
curve very well supported through spring.  we're already into storage
economics so the front goes where the forward curve wants to go.

slafontaine@globalp.com on 02/26/2001 04:48:06 PM

To:   jarnold@enron.com
cc:
Subject:  mkts

its been a while-hope all is well. not a great few weeks for me in ngas-not
awful just nothing really working for me and as you know got in front of
march/apr a cupla times, no disasters.
   well im bearish-i hate to be so after a 4 buck drop but as i said a
month ago
to you-and now pira coming around. 5.00 gas is a disaster for the natgas
demand.
now production up strongly y on y...you guys agree on the production side?
  i know youve been bullish the summer-think im stll in the minority-but
here
you go, we have y on y supplly up 2/bcf+ demnad loss 3.5bcf/d, 5.5 bcf/day
y on
y swing . then i submit as we started to see due huge rate increases R/C
demandd
energy conservation will be even more dramatic this summer which will
effect
utilty demand/power demand ulitmately.  if pira rite we lost 1.56 in jan
for
this factor i say it cud be bigger this summer as ute loads increase, power
pxes
rise and consumers become poorer. there will be more demand flexibilty in
the
summer part in the midcon and north as AC is more of a luxury item than
heat. i
say 5-6% lower use in residentail/utilty power consumption due rationing is
another .7/1bcf/d loss.
  put all this together we wud build an addional 1284 apr thru oct on top
of
last years 1715  build basis last year temps and todays prices. takes us to
3.6
tcf or so. what am i missing my man-summer has to go to 4 bucks or lower to
restore demand??? thots.

as far as that other thing, the p&c its still alive, shud know more soon
and ill
keep you posted.

Re: mkts


freak show. cash started -7 then to -15 then -7 ended -15.

Re: mkts


Alan:
I received your email.  I'll make sure it goes through the proper channels.
It may help if you give specific positions that interest you most as Enron is
such a big place, it will help focus the resume to the right people.
John

Re: Resume


Re: Resume


John,

Thanks for the email and the offer to route my resume in the most
expeditious way.  I saw only one job that was posted on Enron's website that
looked like a good fit.  It was an asset evaluation and integration job for
Enron North America: job # 0000105886.

My primary strengths are:

Natural gas asset acquisition and management
Supporting a trading organization by providing excellent futures and
derivatives execution
Trading proprietary books (fixed price or otherwise)where there is a
competitive reason to be     in the market, i.e. transportation spreads,
storage, physical presence
Good customer relations/account development
Ability to focus on and analyze a wide range of problems/opportunities
Stong negotiator

I know that Enron is a big, happening place and it is invaluble to have
someone like you to help me sort out the opportunities.  Where I am coming
from is that I have to more valuble to Enron than I am to Oxy because Oxy is
doing frustratingly little to leverage itself and Enron is setting every
trend imaginable in leveraging itself.

I appreciate any help you can provide.

Thanks.

Alan

-----Original Message-----
From: John.Arnold@enron.com [mailto:John.Arnold@enron.com]
Sent: Wednesday, November 08, 2000 5:15 PM
To: Alan_Batt@oxy.com
Subject: Re: Resume

Alan:
I received your email.  I'll make sure it goes through the proper channels.
It may help if you give specific positions that interest you most as Enron
is such a big place, it will help focus the resume to the right people.
John

RE: Resume


Nick,

There is a specific program that we are using to recruit, train, and mentor
new traders on the gas and power desks.    The trading track program is being
coordinated by Ted Bland.  I have forwarded him your resume.  Give him a call
and he will fill you in on the details of the program.

Phillip

Re: Resume


Chad,

Call Ted Bland about the trading track program.  All the desks are trying to
use this program to train analysts to be traders.  Your experience should
help you in the process and make the risk rotation unnecessary. Unless you
are dying to do another rotation is risk.

Phillip

Re: Resume


Chad,

Call Ted Bland about the trading track program.  All the desks are trying to use this program to train analysts to be traders.  Your experience should help you in the process and make the risk rotation unnecessary. Unless you are dying to do another rotation is risk.

Phillip

Re: Resume


Have him send his resume to Karen Buckley in HR.  There is a new round of
trading track interviews in May.

Re: Resume


Have him send his resume to Karen Buckley in HR.  There is a new round of trading track interviews in May.

Re: Resume


Please review the attached draft Enron comments in response to the San Diego
request for natural gas price caps.  The comments reflect Becky Cantrell's
comments (which are reflected in red line).  Please respond to me as soon as
possible with your comments, and please pass it on to anyone else who needs
to see it.

Thanks

Sarah

Enron Response to San Diego Request for Gas Price Caps

james.steffes@enron.com, joe.hartsoe@enron.com, susan.mara@enron.com, jeff.dasovich@enron.com, richard.shapiro@enron.com, steven.kean@enron.com, richard.sanders@enron.com, stephanie.miller@enron.com, christi.nicolay@enron.com, mary.hain@enron.com, pkaufma@enron.com, pallen@enron.com


Everyone:

I forgot to mention, these are due today.  Comments back as soon as possible
are appreciated.

Sarah

	Sarah Novosel
	12/13/2000 11:17 AM

		 To: James D Steffes/NA/Enron, Joe Hartsoe/Corp/Enron, Susan J Mara/NA/Enron,
Jeff Dasovich/NA/Enron, Richard Shapiro/NA/Enron, Steven J Kean/NA/Enron,
Richard B Sanders/HOU/ECT, Stephanie Miller/Corp/Enron, Christi L
Nicolay/HOU/ECT, Mary Hain/HOU/ECT, pkaufma@enron.com, pallen@enron.com
		 cc:
		 Subject: Enron Response to San Diego Request for Gas Price Caps

Please review the attached draft Enron comments in response to the San Diego
request for natural gas price caps.  The comments reflect Becky Cantrell's
comments (which are reflected in red line).  Please respond to me as soon as
possible with your comments, and please pass it on to anyone else who needs
to see it.

Thanks

Sarah

Re: Enron Response to San Diego Request for Gas Price Caps

christi.nicolay@enron.com, james.steffes@enron.com, jeff.dasovich@enron.com, joe.hartsoe@enron.com, mary.hain@enron.com, pallen@enron.com, pkaufma@enron.com, richard.sanders@enron.com, richard.shapiro@enron.com, stephanie.miller@enron.com, steven.kean@enron.com, susan.mara@enron.com


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 12/13/2000
11:28 AM ---------------------------
From: Sarah Novosel@ENRON on 12/13/2000 10:17 AM CST
To: James D Steffes/NA/Enron@Enron, Joe Hartsoe/Corp/Enron@ENRON, Susan J
Mara/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@Enron, Richard
Shapiro/NA/Enron@Enron, Steven J Kean/NA/Enron@Enron, Richard B
Sanders/HOU/ECT@ECT, Stephanie Miller/Corp/Enron@ENRON, Christi L
Nicolay/HOU/ECT@ECT, Mary Hain/HOU/ECT@ECT, pkaufma@enron.com,
pallen@enron.com
cc:
Subject: Enron Response to San Diego Request for Gas Price Caps

Please review the attached draft Enron comments in response to the San Diego
request for natural gas price caps.  The comments reflect Becky Cantrell's
comments (which are reflected in red line).  Please respond to me as soon as
possible with your comments, and please pass it on to anyone else who needs
to see it.

Thanks

Sarah


Any merit to mentioning that there has been an initial "supply" response in
terms of pipeline infrastructure - open seasons/expansion efforts on behalf
of Kern River, Transwestern and PGT (not yet announced)?

From: Jeff Dasovich on 12/13/2000 12:04 PM
Sent by: Jeff Dasovich
To: Sarah Novosel/Corp/Enron@ENRON
cc: Christi L Nicolay/HOU/ECT@ECT, James D Steffes/NA/Enron@ENRON, Joe
Hartsoe/Corp/Enron@ENRON, Mary Hain/HOU/ECT@ECT, pallen@enron.com,
pkaufma@enron.com, Richard B Sanders/HOU/ECT@ECT, Richard
Shapiro/NA/Enron@ENRON, Stephanie Miller/Corp/Enron@ENRON, Steven J
Kean/NA/Enron@ENRON, Susan J Mara/NA/Enron@ENRON

Subject: Re: Enron Response to San Diego Request for Gas Price Caps

Recognizing the time constraints you face, I've tried to 1) clear up a few
inaccuracies and 2) massage some of the sharper language without taking a
chainsaw to the otherwise good job.


Griff,

Can you accomodate Dexter as we have in the past.  This has been very helpful
in establishing a fair index at Socal Border.

Phillip

Please cc me on the email with a guest password.  The sooner the better as
bidweek is underway.

---------------------- Forwarded by Phillip K Allen/HOU/ECT on 01/26/2001
09:49 AM ---------------------------

Dexter Steis <dexter@intelligencepress.com> on 01/26/2001 07:28:29 AM
To: Phillip.K.Allen@enron.com
cc:
Subject: NGI access to eol

Phillip,

I was wondering if I could trouble you again for another guest id for eol.
In previous months, it has helped us here at NGI when we go to set indexes.

I appreciate your help on this.

Dexter

NGI access to eol


NGI access to eol


Dexter,

You should receive a guest id shortly.

Phillip

Re: NGI access to eol


Re: NGI access to eol


Grif,

Please provide a temporary id

Phillip
---------------------- Forwarded by Phillip K Allen/HOU/ECT on 03/26/2001
05:04 PM ---------------------------

Dexter Steis <dexter@intelligencepress.com> on 03/26/2001 02:22:41 PM
To: Phillip.K.Allen@enron.com
cc:
Subject: Re: NGI access to eol

Hi Phillip,

It's that time of month again, if you could be so kind.

Thanks,

Dexter

*****************************
Dexter Steis
Executive Publisher
Intelligence Press, Inc.
22648 Glenn Drive Suite 305
Sterling, VA 20164
tel: (703) 318-8848
fax: (703) 318-0597
http://intelligencepress.com
http://www.gasmart.com
******************************

At 09:57 AM 1/26/01 -0600, you wrote:

>Dexter,
>
>You should receive a guest id shortly.
>
>Phillip

Re: NGI access to eol


Griff,

Can you please accommodate this request?

Phillip

 -----Original Message-----
From: 	Dexter Steis <dexter@intelligencepress.com <mailto:dexter@intelligencepress.com>>@ENRON [mailto:IMCEANOTES-Dexter+20Steis+20+3Cdexter+40intelligencepress+2Ecom+3E+40ENRON@ENRON.com] <mailto:[mailto:IMCEANOTES-Dexter+20Steis+20+3Cdexter+40intelligencepress+2Ecom+3E+40ENRON@ENRON.com]>
Sent:	Wednesday, July 25, 2001 4:24 PM
To:	Allen, Phillip K.
Subject:	Re: NGI access to eol

Phillip,

If its not to much trouble, could you have my guest username and password
reinstated.

Thanks,
Dexter

JOR46762
WELCOME!

FW: NGI access to eol


Dexter,

Hopefully Griff Gray has sent you the information on your id and password by now.  It should be good through January.  Please email or call if any problems.

Phillip

 -----Original Message-----
From: 	Dexter Steis <dexter@intelligencepress.com>@ENRON [mailto:IMCEANOTES-Dexter+20Steis+20+3Cdexter+40intelligencepress+2Ecom+3E+40ENRON@ENRON.com]
Sent:	Wednesday, July 25, 2001 6:24 PM
To:	Allen, Phillip K.
Subject:	Re: NGI access to eol

Phillip,

If its not to much trouble, could you have my guest username and password
reinstated.

Thanks,
Dexter

JOR46762
WELCOME!

RE: NGI access to eol


Are there behind closed doors discussions being held prior to the meeting?
Is there the potential for a surprise announcement of some sort of fixed
price gas or power cap once the open meeting finally happens?

Re: This morning's Commission meeting delayed


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 04/25/2001
01:51 PM ---------------------------

Ray Alvarez@ENRON
04/25/2001 11:48 AM
To: Phillip K Allen/HOU/ECT@ECT
cc:
Subject: Re: This morning's Commission meeting delayed

Phil,  I suspect that discussions/negotiations are taking place behind closed
doors "in smoke filled rooms", if not directly between Commissioners then
among FERC staffers.  Never say never, but I think it is highly unlikely that
the final order will contain a fixed price cap.  I base this belief in large
part on what I heard at a luncheon I attended yesterday afternoon at which
the keynote speaker was FERC Chairman Curt Hebert.  Although the Chairman
began his presentation by expressly stating that he would not comment or
answer questions on pending proceedings before the Commission, Hebert had
some enlightening comments which relate to price caps:

Price caps are almost never the right answer
Price Caps will have the effect of prolonging shortages
Competitive choices for consumers is the right answer
Any solution, however short term, that does not increase supply or reduce
demand, is not acceptable
Eight out of eleven western Governors oppose price caps, in that they would
export California's problems to the West

This is the latest intelligence I have on the matter, and it's a pretty
strong anti- price cap position.  Of course, Hebert is just one Commissioner
out of 3 currently on the Commission, but he controls the meeting agenda and
if the draft order is not to his liking, the item could be bumped off the
agenda.  Hope this info helps.  Ray

Phillip K Allen@ECT
04/25/2001 02:28 PM
To: Ray Alvarez/NA/Enron@ENRON
cc:

Subject: Re: This morning's Commission meeting delayed

Are there behind closed doors discussions being held prior to the meeting?
Is there the potential for a surprise announcement of some sort of fixed
price gas or power cap once the open meeting finally happens?


Are there behind closed doors discussions being held prior to the meeting?  Is there the potential for a surprise announcement of some sort of fixed price gas or power cap once the open meeting finally happens?


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 04/25/2001 01:51 PM ---------------------------

Ray Alvarez@ENRON
04/25/2001 11:48 AM
To:	Phillip K Allen/HOU/ECT@ECT
cc:
Subject:	Re: This morning's Commission meeting delayed

Phil,  I suspect that discussions/negotiations are taking place behind closed doors "in smoke filled rooms", if not directly between Commissioners then among FERC staffers.  Never say never, but I think it is highly unlikely that the final order will contain a fixed price cap.  I base this belief in large part on what I heard at a luncheon I attended yesterday afternoon at which the keynote speaker was FERC Chairman Curt Hebert.  Although the Chairman began his presentation by expressly stating that he would not comment or answer questions on pending proceedings before the Commission, Hebert had some enlightening comments which relate to price caps:

Price caps are almost never the right answer
Price Caps will have the effect of prolonging shortages
Competitive choices for consumers is the right answer
Any solution, however short term, that does not increase supply or reduce demand, is not acceptable
Eight out of eleven western Governors oppose price caps, in that they would export California's problems to the West

This is the latest intelligence I have on the matter, and it's a pretty strong anti- price cap position.  Of course, Hebert is just one Commissioner out of 3 currently on the Commission, but he controls the meeting agenda and if the draft order is not to his liking, the item could be bumped off the agenda.  Hope this info helps.  Ray

Phillip K Allen@ECT
04/25/2001 02:28 PM
To:	Ray Alvarez/NA/Enron@ENRON
cc:

Subject:	Re: This morning's Commission meeting delayed

Are there behind closed doors discussions being held prior to the meeting?  Is there the potential for a surprise announcement of some sort of fixed price gas or power cap once the open meeting finally happens?

<Embedded StdOleLink>
<Embedded StdOleLink>


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 04/30/2001
10:36 AM ---------------------------

Alan Comnes
04/27/2001 01:38 PM
To: Phillip K Allen/HOU/ECT@ECT
cc: Joe Hartsoe/Corp/Enron@ENRON
Subject: Request from Steve Kean

Phillip,

I got this request.  On the gas side, I think Kean/Lay need an update to a
table you prepared for me a few months ago, which I've attached..  Can you
oblige?  Thanks,

Alan Comnes

---------------------- Forwarded by Alan Comnes/PDX/ECT on 04/27/2001 01:42
PM ---------------------------

Janel Guerrero@ENRON
04/27/2001 12:44 PM
To: Alan Comnes/PDX/ECT@ECT, Jeff Dasovich/NA/Enron@Enron
cc: Paul Kaufman/PDX/ECT@ECT, Richard Shapiro/NA/Enron@Enron

Subject: Request from Steve Kean

Alan,

Steve has asked that you update the power point below so that it reflects all
of the "stupid regulatory/legislative decisions" since the beginning of the
year.  Ken wants to have this updated chart in his briefing book for next
week's "Ken Lay Tour" to CA.

He also wants a forward price curve for both gas and power in CA.  Can we get
these three documents by Monday afternoon?

Request from Steve Kean


Request from Steve Kean