DRAM Interim Policy Draft Approval

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 11/02/2000
02:47 PM ---------------------------

From: Cassandra Schultz @ ENRON
10/31/2000 02:47 PM

To: Michael Moulton/HOU/ECT@ECT, Steve Kim/HOU/ECT@ECT
cc: David Port/Market Risk/Corp/Enron@ENRON, Kristin Albrecht/Enron
Communications@Enron Communications, Vince J Kaminski/HOU/ECT@ECT, James
Ginty/Enron Communications@Enron Communications, Christian
LeBroc/Corp/Enron@ENRON, Robbi Rossi/Enron Communications@Enron
Communications, Bjorn Hagelmann/HOU/ECT@ECT, Barry Pearce/Enron
Communications@Enron Communications, Tanya Rohauer/HOU/ECT@ECT
Subject: DRAM Interim Policy Draft Approval

Michael and Steve -

Thanks for coming to the Risk Forum luncheon today, we enjoyed hearing about
the new business opportunity.

Attached is a first draft of the approval form we'll want to circulate to the
various functional signers for approval prior to sending to Rick Buy and
Skilling for approval and granting of the limits - after we've completed. I
cut and pasted from information you provided, and have highlighted the areas
that are missing information. Please review and coordinate with the various
functions and get back to David Port or to me with the missing information or
any comments you have.

As for the Risk Assessment, we might want to take a look at that - I just cut
and pasted the SWOT analysis in from the business plan so far. I'll talk to
David. If any of the functional areas have specific issues we should
document that will need to be addressed later at some point, let's make a
note of them in this interim policy document so we don't lose track of them.

I'm also enclosing the Authorized Trader List and Authorized Products List
that will need to be completed once we figure out who will be designated the
official head trader for this commodity group (will that be you? Wade
Dosier?), and the presentation prepared by you for those who did not receive.

As far as Market Risk Management, we work as a team here, so feel free to
contact either David at x39823 or me at x30429 - I handle the risk policy and
procedures side, whereas David is taking the lead on this new initiative
from a market risk perspective and will be addressing specific business and
technical issues. Christian LeBroc at x58062 will also be working for David
reviewing the quantitative risk parameters.

Regards,
Cassandra.