Cash books, etc.

I have been thinking about the cash book idea for group and I think we need
to discuss this in more detail. I would like to continue to use the physical
for large prompt positions going forward. I am afraid that the baseload
volumes may not continue on their current trend if we break out the books.
We need to discuss how the cash books would lay off risk. i.e. Intra
regional spreads with GD swap legs or spreads with other cash points and then
booking out at gd mid to the internal counterparty. Janie managing SJ and
laying off risk on Steve's Opal. I know that the cash books would be a good
idea for dailies , but I am not sure how to do this without giving up the
cash risk for baseload as well. What are your thoughts?

I would also like to discuss the staffing issues. Matt Smith and Susan Scott
to analyst, Jay to the ROX, etc. It seems like Ken S. has shown more
interest in the west fundies lately. Should we keep his services?

The basis products need another book. Who can we add to the mix? I think
that we should look into having Frank focus on prompt month only. He has a
great interest in cash and fundies and this should serve him well in managing
tight two ways for all products on the prompt. Keith can do term with
another book.

Monique is going to take over the gd swaps for Kern, SJ, and Perm. I will
continue to manage the CA products. This should allow us to provide tighter
two ways across the west. I will continue to manage all index products and
prompt month phys fixed price.

Operations needs more labor as well as an analyst or two to monitor flows.
The analysts will monitor flows by price and hopefully find creative ways to
nom the market.

EOL. Keith has a great idea of opening up all products to the desk so that
you may insert a bid or an offer inside of the manager's markets. We should
propose this to EOL. This would allow for tighter markets on all products
and prevent the desk from working markets through the brokers.

Ca cash products. Let's call a meeting about how to offer more Socal
physical products. I would like to have PG&E topock and Socal Ehrenberg
before the summer.

Mike