FW: Nine Energy Services

-----Original Message-----
From: Bradford, William S.
Sent: Thursday, August 30, 2001 8:38 AM
To: Vanek, Darren; Smith, Matt
Cc: Rohauer, Tanya; Williams, Jason R (Credit); Allen, Phillip K.
Subject: RE: Nine Energy Services

Matt,

Please stop doing trades without approval. Please advise why this is so difficult for you.

Thanks,
Bill

-----Original Message-----
From: Vanek, Darren
Sent: Wednesday, August 29, 2001 7:01 PM
To: Smith, Matt
Cc: Bradford, William S.; Rohauer, Tanya; Williams, Jason R (Credit)
Subject: Nine Energy Services

Matt,
As we discussed several times previously, including earlier this week, Nine Energy Services LLC is a CREDIT WATCH COUNTERPARTY and a WMBE (Women and Minority owned Business Enterprises), which means that ALL trades need to be approved by Credit and documented with a Resale Agreement. Every time we transact, ENA's Confirmation Group needs to know from whom to expect payment, i.e. San Diego Gas & Electric. The nature of the transaction exposes ENA to secondary risk with the ultimate counterparty. On another note, some transactions COULD be declined by Credit due to direct exposure/risk that the ENA has with the Counterparty, outside of any WMBE Transactions.

Sitara Deal Number 1014433 was another violation of Corporate Credit Policy. In the future, please contact Credit before transacting with any Credit Watch Counterparty.

-Darren Vanek