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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Richard B Sanders X-To: "Fergus, Gary S." <GFergus@brobeck.com<@ENRON X-cc: X-bcc: X-Folder: \Richard_Sanders_Oct2001\Notes Folders\All documents X-Origin: Sanders-R X-FileName: rsanders.nsf I just left Derrick a voicemail so I should have an answer shortly. "Fergus, Gary S." <GFergus@brobeck.com< 02/02/2001 08:50 AM To: "Richard B. Sanders Esq. (E-mail)" <richard.b.sanders@enron.com< cc: Subject: Request for Conflict Waiver to Represent City of Palo Alto in Ban kruptcy matters Richard, Here is the status of the information we have about the City of Palo Alto's request that our firm represent them in connection with the potential bankruptcy of PG&E. It is my understanding that the City of Palo Alto has agreed that in the event that Enron and the City of Palo Alto become adverse in any proceeding, then agree that our firm will have to withdraw from representation of the City of Palo Alto and that we will be able to continue to represent Enron notwithstanding the fact that they will have provided to our firm confidential information. In particular, if Enron and the City of Palo Alto become adverse in connection with the California electricity litigation (including class actions, governmental investigations and the recent decision of Enron Energy Services to transfer customers back to PG&E for physical delivery), our firm will be able to continue to represent Enron even against the City of Palo Alto. One of the reasons that the City of Palo Alto is willing to do this is that they do not believe that it is likely they will become adverse to Enron and their desire to have the specialized expertise of Larry Engel. The City of Palo Alto has its own generation capacity through WAPA (the Western Area Power Administration), NCPA (the Northern California Power Agency), and TANC (the Transmission Authority of Northern California). The City does buy a small amount of power from Enron, as I understand it. We have specifically identified the City and County of San Francisco suit and asked if Palo Alto has any intention of joining that suit. Would you please let us know Enron's view of this proposed bankruptcy representation in view of these disclosures? Thanks Gary ======================================================= This email message is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply email and destroy all copies of the original message. To reply to our email administrator directly, send an email to postmaster@brobeck.com BROBECK PHLEGER & HARRISON LLP http://www.brobeck.com
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