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Enron Mail |
Jeff - call me when you get a minute regarding this. Torrey is absolutely
correct - our traders have been instructed not to allow customers out of a trade without doing an OTC trade or having legal prepare a termination agreement. Sounds like it is time to send out the policy again! Sheri From: Torrey Moorer 01/16/2001 03:51 PM To: Jeffrey C Gossett/HOU/ECT@ECT cc: Sheri Thomas/HOU/ECT@ECT, Jennifer deBoisblanc Denny/HOU/ECT@ECT, Kim S Theriot/HOU/ECT@ECT, Leslie Reeves/HOU/ECT@ECT, Errol McLaughlin/Corp/Enron@ENRON Subject: Re: Gas Daily deals in dispute Jeff- From a legal perspective, the traders are not supposed to have the authority to let out another entity from an EnronOnline trade. If the trade is the result of a system malfunction or some other uncontrollable issue, the customer can get with the trader and agree to reverse out an existing EOL transaction with an OTC trade, but Commercial should not be letting customers out of EOL deals simply because their traders "clicked on the wrong product". This is the policy that Mark Taylor and Legal have had in place since the inception of EOL. I'll get with Sheri and Jennifer and we will see what Legal has to say, but, if Mike Maggi and/or John Arnold have been verbally allowing customers to change these Gas Daily trades in the past, it definitely creates a problem from the perspective of trying to hold them to the same trades now. The best advise I can give right now is to make sure that John and Mike do not continue allowing customers out of their trades simply because they "clicked on the wrong product". The legal responsibility for "clicking on the right product" lies firmly with the customer and whenever Commercial starts allowing them out of that responsibility it can create serious legal problems when and if one of these trades comes back to bite them. Torrey Jeffrey C Gossett 01/16/2001 03:05 PM To: Torrey Moorer/HOU/ECT@ECT cc: Sheri Thomas/HOU/ECT@ECT, Kim S Theriot/HOU/ECT@ECT, Leslie Reeves/HOU/ECT@ECT Subject: Gas Daily deals in dispute Torrey - We have an issue where some of our traders are letting traders out of EOL deals b/c they "clicked on the wrong product." What happens is we end up having two deals in our systems, and the counterparty has no deals in their system. So when settlement goes out they tend to accept the one in their favor and reject the one against them. We always work it out but as you can imagine it is a huge headache from everyone's perspective. Please advise on what we can do to put an end to this practice. Thanks ---------------------- Forwarded by Jeffrey C Gossett/HOU/ECT on 01/16/2001 02:54 PM --------------------------- Gregory Carraway@ENRON 01/16/2001 01:57 PM To: Jeffrey C Gossett/HOU/ECT@ECT cc: Subject: Gas Daily deals in dispute Forwarded per request of Kim Theriot. ---------------------- Forwarded by Gregory Carraway/Corp/Enron on 01/16/2001 12:46 PM --------------------------- Gregory Carraway 01/16/2001 08:50 AM To: Errol McLaughlin/Corp/Enron@ENRON cc: Rebecca Ford/HOU/ECT@ECT, Kim S Theriot/HOU/ECT@ECT Subject: Gas Daily deals in dispute The following deals are being disputed by Reliant Energy Services. TAGG is showing these deals as Gas Daily, but the counterparty states that they should be changed to Nymex trades. They also stated that they were told by Mike Maggi that the deals would be changed to Nymex deals:
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