HPL Optimization

Please make sure your staff receives this if they are not included on the
distribution below. I hope all will understand the importance of
confidentiality as well as the importance of their jobs and skills. Thanks
for reinforcing it!
---------------------- Forwarded by Brenda F Herod/HOU/ECT on 07/20/2000
11:02 AM ---------------------------

From: Brian Redmond 07/19/2000 02:42 PM

Sent by: Lillian Carroll
To: Jim Coffey/HOU/ECT@ECT, Lisa Lunz/Corp/Enron@ENRON, Susie
Orsak/Corp/Enron@Enron, Susie Orsak/Corp/Enron@Enron, Arize
Agumadu/NA/Enron@Enron, Karry Kendall/HOU/ECT@ECT, Yvette
Miroballi/HOU/ECT@ECT, Karen Gruesen/HOU/ECT@ECT, Melissa Graves/HOU/ECT@ECT,
Anita Eisenbrandt/HOU/ECT@ECT, Cassandra Pollack/Corp/Enron@ENRON, Rabia
Basit/Corp/Enron@Enron, Carol Carter/HOU/ECT@ECT, Jackie Nelson/HOU/ECT@ECT,
Blanca A Lopez/HOU/ECT@ECT, Alexia O Pearce/HOU/ECT@ECT, Rhonda
Washington/HOU/ECT@ECT, Meredith Powers/HOU/ECT@ECT, Ruby
Wagoner/HOU/ECT@ECT, Luis Davila/HOU/ECT@ECT, Katherine
Crosswhite/HOU/ECT@ECT, Susan Smith/HOU/ECT@ECT, Vance L Taylor/HOU/ECT@ECT,
Donald P Reinhardt/HOU/ECT@ECT, Nancy Hall/HOU/ECT@ECT, Leticia
Leal/HOU/ECT@ECT, Melanie Facundo/HOU/ECT@ECT, Xochitl-Alexis
Velasco/HOU/ECT@ECT, Venita Coleman/Corp/Enron@Enron, Monica
Jackson/Corp/Enron@ENRON, Lacye Brymer/NA/Enron@Enron, Melissa
Jones/NA/Enron@ENRON, Katherine Crosswhite/HOU/ECT@ECT, Mirna
Mejia/HOU/ECT@ECT, Julie A Gomez/HOU/ECT@ECT, Nick
Cocavessis/Corp/Enron@ENRON, Jean Mrha/NA/Enron@Enron, Steve HPL
Schneider/HOU/ECT@ECT, Thomas A Martin/HOU/ECT@ECT, Mark
Courtney/HOU/ECT@ECT, Mark Knippa/HOU/ECT@ECT, John Scarborough/HOU/ECT@ECT,
Carol Carter/HOU/ECT@ECT, Petual Jeanmard/Corp/Enron@Enron, Morela
Hernandez/Corp/Enron@Enron, Kevin Kuehler/Corp/Enron@ENRON, Valerie
Urbanek/Corp/Enron@ENRON, Reid Hansen/GCO/Enron@Enron, Robert
Geheb/GCO/Enron@Enron, Tom Fry/GCO/Enron@Enron, Calvin Dodd/GCO/Enron@Enron,
Vicente Sarmiento/GCO/Enron@Enron, Eugene Peabody/GCO/Enron@Enron, Don
Thomas/GCO/Enron@Enron, J R Fosdick/GCO/Enron@Enron, Bac Thi
Ly/GCO/Enron@Enron, Bob Camp/GCO/Enron@Enron, Joe Zernicek/GCO/Enron@Enron,
John Peyton/HOU/ECT@ECT, Keith MacIvor/Corp/Enron@ENRON, Paul
Bieniawski/Corp/Enron@ENRON, John Allario/HOU/ECT@ECT, Garry D
Wilson/HOU/ECT@ECT, Jin Guo/HOU/ECT@ECT, Stephanie Miller/Corp/Enron@ENRON,
Rebecca W Cantrell/HOU/ECT@ECT, Melinda Pharms/HOU/ECT@ECT, Chris
Meyer/HOU/ECT@ECT, John Hodge/Corp/Enron@ENRON, Janet
Edwards/Corp/Enron@ENRON, Ruth Concannon/HOU/ECT@ECT, Fannette A
Perry/HOU/ECT@ECT, Brad Blevins/HOU/ECT@ECT, Lal Echterhoff/HOU/ECT@ECT,
James R Haden/HOU/ECT@ECT, Audrey Pullen/HOU/ECT@ECT, Chris
Sonneborn/HOU/ECT@ECT, Ping He/Corp/Enron@Enron, Gas Control, Tom
Acton/Corp/Enron@ENRON, Clem Cernosek/HOU/ECT@ECT, Pat
Clynes/Corp/Enron@ENRON, George Grant/HOU/ECT@ECT, Charlotte
Hawkins/HOU/ECT@ECT, Aimee Lannou/HOU/ECT@ECT, Robert E Lloyd/HOU/ECT@ECT,
Mark McCoy/Corp/Enron@Enron, Stella L Morris/HOU/ECT@ECT, Carlos J
Rodriguez/HOU/ECT@ECT, Susan D Trevino/HOU/ECT@ECT, Kimberly
Vaughn/HOU/ECT@ECT, Jackie Young/HOU/ECT@ECT, Sabrae Zajac/HOU/ECT@ECT, Lisa
Hesse/HOU/ECT@ECT, Mary M Smith/HOU/ECT@ECT, Heidi Withers/HOU/ECT@ECT, Daren
J Farmer/HOU/ECT@ECT, Stacey Neuweiler/HOU/ECT@ECT, Jim
Schwieger/HOU/ECT@ECT, Kenny J Soignet/HOU/ECT@ECT, Edward D
Gottlob/HOU/ECT@ECT, Lauri A Allen/HOU/ECT@ECT, Greg Brazaitis/HOU/ECT@ECT,
Gary W Lamphier/HOU/ECT@ECT, Lee L Papayoti/HOU/ECT@ECT, Janet H
Wallis/HOU/ECT@ECT, Ned Higgins/HOU/ECT@ECT, James
Whitehead/Corp/Enron@ENRON, James I Ducote/HOU/ECT@ECT, Michael W
Morris/HOU/ECT@ECT, Blake Lasuzzo/Corp/Enron@Enron, Barbara N
Gray/HOU/ECT@ECT, Paula Craft/HOU/ECT@ECT, Roger Balog/HOU/ECT@ECT, Sandi M
Braband/HOU/ECT@ECT, Shonnie Daniel/HOU/ECT@ECT, Gerald Nemec/HOU/ECT@ECT,
Steve Van Hooser/HOU/ECT@ECT, Ann Elizabeth White/HOU/ECT@ECT, Mary
Ogden/HOU/ECT@ECT, Robert Walker/HOU/ECT@ECT, Erica Braden/HOU/ECT@ECT, Pat
Radford/HOU/ECT@ECT, Becky Tlucek/HOU/ECT@ECT, Kimberlee A
Bennick/HOU/ECT@ECT, Taffy Milligan/HOU/ECT@ECT, Jenny Helton/HOU/ECT@ect,
Chaundra Woods/HOU/ECT@ECT, Eric Gillaspie/HOU/ECT@ECT, Shawna
Flynn/HOU/ECT@ECT, W Tom Byargeon/HOU/ECT@ECT, Kevin Miller/Corp/Enron@Enron,
Ken Loch/Corp/Enron@Enron, Johnnie Williams/HOU/ECT@ECT, Ryan
Hinze/Corp/Enron@ENRON, Lori Hope/HOU/ECT@ect, Emma Kam Welsch/HOU/ECT@ECT,
Nathan L Hlavaty/HOU/ECT@ECT, Candace L Bywaters/HOU/ECT@ECT, Gerald
Lofton/HOU/ECT@ECT, Cheryl Lantz Marshall/HOU/ECT@ECT, Tom
Shelton/HOU/ECT@ECT, Ron Green/Corp/Enron@Enron, Kenneth W Kaase/HOU/ECT@ECT,
Perry Roberts/GCO/Enron@ENRON, John Miska/GCO/Enron@ENRON, Kenny
Cooper/GCO/Enron@ENRON, Sean Brooks/GCO/Enron@ENRON, Fred
Biery/GCO/Enron@ENRON, Kelley Myers/GCO/Enron@ENRON, John
Towles/NA/Enron@ENRON, Karl E Atkins/NA/Enron@ENRON, Debbie
Boudar/NA/Enron@ENRON, Aric Archie/NA/Enron@Enron, Robert
Rose/NA/Enron@ENRON, Ken Parker/HOU/ECT@ECT, Roger Spiller/OTS/Enron@ENRON,
Ron Tapscott/HOU/ECT@ECT, Dan Staines/HOU/ECT@ECT, Michelle
Zhang/HOU/ECT@ECT, Scott A Monson/HOU/ECT@ECT, Steve Walton/HOU/ECT@ECT,
Jeffrey A Austin/HOU/ECT@ECT, Jill T Zivley/HOU/ECT@ECT, Mary Jo
Johnson/HOU/ECT@ECT, Gary Bryan/HOU/ECT@ECT, Brian M Riley/HOU/ECT@ECT,
Jennifer Martinez/HOU/ECT@ECT, George Weissman/HOU/ECT@ECT, Michael C
Bilberry/HOU/ECT@ECT, Michelle Terry/Corp/Enron@Enron, JoAnne
Wagstaff/NA/Enron@Enron, Christy Sweeney/HOU/ECT@ECT, Peter
Bennett/Corp/Enron@ENRON, Michael Eiben/HOU/ECT@ECT, Irene Flynn/HOU/ECT@ECT,
Juanita Marchand/HOU/ECT@ECT, Chris Riegler/Corp/Enron@Enron, Karl
Stewart/HOU/ECT@ECT, Kim Weldon/Corp/Enron@Enron, Amelia Alland/HOU/ECT@ECT,
Cheryl Dudley/HOU/ECT@ECT, Cathy L Harris/HOU/ECT@ECT, Jackie
Morgan/HOU/ECT@ECT, Donna Consemiu/HOU/ECT@ECT, Robert Cook/HOU/ECT@ECT,
Molly L Carriere/HOU/ECT@ECT, Robert Crockett/HOU/ECT@ECT, Christopher
Daniel/HOU/ECT@ECT, John Handley/HOU/ECT@ECT, Theresa McKinney/HOU/ECT@ECT,
Adriana Peterson/HOU/ECT@ECT, Barbara Sargent/HOU/ECT@ECT, Eric H
Mason/Corp/Enron@Enron, Trading, David Baumbach/HOU/ECT@ECT, Ami
Chokshi/Corp/Enron@ENRON, Jody Crook/Corp/Enron@ENRON, Bryan
Hull/HOU/ECT@ECT, Julie Meyers/HOU/ECT@ECT, Steve Venturatos/HOU/ECT@ECT,
Michael Walters/HOU/ECT@ECT, O'Neal D Winfree/HOU/ECT@ECT, Yvette G
Connevey/Corp/Enron@ENRON, Brenda F Herod/HOU/ECT@ECT, Paul
Couvillon/Corp/Enron@Enron, Lisa Csikos/HOU/ECT@ECT, Stephanie
Gomes/HOU/ECT@ECT, Cynthia Hakemack/HOU/ECT@ECT, Kristen J
Hanson/HOU/ECT@ECT, Katherine Herrera/Corp/Enron@ENRON, Gregg
Lenart/HOU/ECT@ECT, Kyle R Lilly/HOU/ECT@ECT, Nick Moshou/Corp/Enron@ENRON,
Joanie H Ngo/HOU/ECT@ECT, Hannah Ortiz/HOU/ECT@ECT, Megan
Parker/Corp/Enron@ENRON, Charlene Richmond/HOU/ECT@ECT, Tina
Valadez/HOU/ECT@ECT, Harold Bertram/HOU/ECT@ECT, Troy Denetsosie/HOU/ECT@ECT,
Volume Management, Brian Bierbach/DEN/ECT@Enron, Mark Whitt/DEN/ECT@Enron,
Michael J Legler/HOU/ECT@Enron, James Hoff/DEN/ECT@Enron, Paul T
Lucci/DEN/ECT@Enron, Scott Sitter/DEN/ECT@Enron, Nicole Cortez/DEN/ECT@Enron,
Theresa Staab/Corp/Enron@ENRON, Heidi DuBose/DEN/ECT@Enron
cc:
Subject: HPL Optimization

Team,

As I mentioned in our HPL staff meeting we are investigating the merits of
entering into a joint venture or another transaction structure that will
position HPL to effectively compete in the Texas intrastate market. Our
primary objective is to gain access to additional sources of gas supply and
achieve the required economies of scale to compete with other intrastate
pipelines. I would appreciate your confidence and support in developing the
optimal course of action for HPL and for Enron.

The skills that we have developed in our group are critical to growing our
Upstream Origination business in N. America, as well as to the ongoing
operation of HPL. Our origination strategy is to leverage our business
operations, field operations, engineering, producer services, and marketing
skills to capture value from transportation, gathering, storage and commodity
opportunities on the gas/power grids. We need our current employees to
accomplish this objective across N. America.

We have proven our ability to add value to Enron by developing the
Powder/Wind River pipelines, installing electric compressors, contracting for
processing capacity, and establishing a new gas supply corridor along the
Gulf Coast. Our recent efforts to provide services such as business
operations, measurement, trading/marketing, and accounting services to third
party producers and pipelines also looks to be a promising growth opportunity.

It is very important to our ongoing business relationships and our
competitive position in the market place that we DO NOT discuss HPL related
matters with third parties. Please come see me if you have any specific
questions or concerns. Also please refer any third party inquiries regarding
HPL to Tim Determing.

Regards,
Brian