Re: Market Meters Breakout

Market deals are only captured in accrual value calculations if they are in
the wellhead portfolio. I do not recall any sales currently in the wellhead
portfolio. However, I do not see a problem with the market deals unless they
were marked improperly (e.g. accrual adders).

-EB

Enron North America Corp.

From: Brenda F Herod 03/16/2000 08:31 AM

To: Eric Bass/HOU/ECT@ECT, Bryan Hull/HOU/ECT@ECT, Michael Walters/HOU/ECT@ECT
cc:
Subject: Market Meters Breakout

Would you all look at this, and make sure you all agree with the break-out?
It is my understanding that this expense has NOT been included in Tom's P&L.
If so, why hasn't it?

Eric: How are market deals reflected in the accrual value calculations?
---------------------- Forwarded by Brenda F Herod/HOU/ECT on 03/16/2000
08:28 AM ---------------------------

Enron North America Corp.

From: Heidi Withers 03/15/2000 05:11 PM

To: Brenda F Herod/HOU/ECT@ECT
cc: Mary M Smith/HOU/ECT@ECT
Subject: Market Meters Breakout

Brenda,

I am going through the market meters right now and am finding the following
results for February.

TOM $124,002
GREG $9,285

I started the process by pulling all the meters and associated transport
rates off the transport capacity tickets. I pulled them based on the
delivery rates being greater than the matrix. I then researched the deals to
pull the deal tickets. If the deal occurred before 7/99, then I assigned the
expense to Tom. If the deal occurred after 7/99, then I looked at who the
dealmaker was and based the assignment of the transport expense on who the
dealmaker was. In all cases, either Papayoti or Lamphier did the deal.

I also trued up the transport rate to the transport rate on the deal ticket.
This includes occasions when the transport capacity ticket did not have a
transport rate but the transport capacity ticket had an increased rate. In
other words, I defaulted to the deal ticket so that we could have a paper
record of the transport rate.

As of now, I still have to pull January volume and attach the rate to the
March transport. I wanted to go through the full analysis first and now that
I have the actual transport rate from the deal ticket, I know which rate to
attach.

I will pursue these avenues next. Please let me know what questions you have.

Heidi

PS Details are attached.