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Enron Mail |
This email will update you on the status of Project Stanley.
Last week, Steve Kean and I traveled to Calgary to meet with our Canadian lawyers and consultants to outline a strategy for defending the goverment criminal investigation of Enron Canada's electricity trading activities. The results were as follows: There has been no publicity generated as a result of the government investigation. Obviously, this could change tomorrow. We have retained a Canadian public relations firm to assist Steve Kean's group with thepotential press inquiries. Our intellingence indicates that the government's investigation is not moving forward in any organized manner. Our lead lawyer, Glenn Leslie, has spoken to the lead lawyer for the government, Jim Sutton, about the possibility of a meeting between Enron and the government. Sutton said he wanted to meet but that his team was not ready at this time. Sutton indicated that several of his team members had left the investigation and that he was recruiting other team members. Glenn Leslie learned from another source that the government siezed 1700 hours of tapes from our counterparty , Power X, and that they do not know where to start the pain staking effort of listening to the tapes. Based on this information, we do not believe the proposed initial meeting will take place for 2-4 months. Power X, like the government is far behind Enron in its investigation of the alleged unlawful events. Glenn Leslie has traveled to Vancouver to meet with Power X's attorneys to advise them of Enron's position. Power X has agreed to cooperate with Enron and has signed a joint defense agreement. We do not believe that Power X will try to negotiate its own settlement with the government without our knowledge. We have retained several experts to assist Glenn Leslie and his firm with developing strategies. In addition, we have "conflicted" several other experts who may be retained by the government. The meeting last week in Calgary was our first opportunity to meet the experts and hear their theories of defense. These include the allegation that Enron and Power X participated in "bid riggering" is untrue because the Alberta Power Pool price clearing procedure is not a bidding process at all. We and other market participants simply make offers into the pool. We do not know whether the offer will be accepted. More importantly, we do not know what the price will be.
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