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Enron Mail |
We are moving forward to transfer the positions from the emissions books (SO2
and NOx) to the coal group at close of business 5/23/00. The SO2 marks for both the underlying and volatility positions currently in the 2007 through 2010 timeframe create a value differential of $2.6 million between our evaluation and their marks. For the sake of not continuing the unproductive task of negotiating this value, we will move forward to transfer despite our differences. I strongly recommend continuing to use and pay for all personnel in risk, documentation and settlement that currently perform these duties for emissions. I would like to utilize these resources until further notice. I am not comfortable committing to any transfer of risk, documentation and settlement duties until we have the time to evaluate this further. I would appreciate if you could help on this matter to ensure a smooth transition. KJM
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