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Enron Mail |
Stewart,
Yesterday at our meeting with Tim, I thought it was fairly clear that efforts were to be made before deals were done to check out authorization. This morning you tell us you have done a 3 year deal with Merced and ask us to check out the authorization question after the fact. This is exactly the opposite of what I thought we were all trying to do. We don't really need to call Merced. We have the relevant legal paper. You need to get the attorney from the finance group, Sara, to tell you whether or not Merced is authorized to do the deal you have already done. I am working with the guys at Turlock to check out their authorizations. ----cgy To: Sara Shackleton/HOU/ECT@ECT cc: Christian Yoder/HOU/ECT@ECT Subject: Re: merced Thanks for the response - You both have the approprate person at Merced to contact to get clarification with respect to authorization. They are aware that you may call. At this point they are fully hedged in the near term so future deals will be back years (precisely the term we may be concerned with). Stewart From: Sara Shackleton on 09/01/2000 12:41 PM CDT To: Christian Yoder/HOU/ECT@ECT, Stewart Rosman/HOU/ECT@ECT cc: Mark Taylor/HOU/ECT@ECT Subject: Re: merced The ISDA Master does not circumscribe the trade term or trade parameters. The issue which we discussed is authority. The Merced resolution of March 16, 1999 specifically authorizes the general manager "...to develop and provide appropriate information, and certifications for completing Master Trading (ISDA) Agreements with energy vendors and execute Master Trading (ISDA) Agreements and appropriate vendor Schedules to the ISDA Agreement for the purpose of acquiring energy and stabilizing energy costs. Such executions are subject to Counsel review of the agreement and schedules as to form." There is no specific mention of authority to enter into transactions (by Merced's traders). Intuitively one could draw the conclusion that the ISDA Master contemplates transactions, Merced authorized the ISDA Master and therefore Merced authorized transactions under the ISDA Master. Since Merced is a governmental entity, the safer view is that we should not assume that Merced authorized transactions. Merced probably intended to authorize transactions, and if so, should not have an issue with specifically providing a clarifying resolution. Sara Christian Yoder 09/01/2000 11:22 AM To: Sara Shackleton/HOU/ECT@ECT cc: Stewart Rosman/HOU/ECT@ECT Subject: merced Does our ISDA with Merced contain wording that gives us legal comfort if we do an 18 month trade?---cgy ---------------------- Forwarded by Christian Yoder/HOU/ECT on 09/01/2000 09:17 AM --------------------------- From: Stewart Rosman on 09/01/2000 08:13 AM To: Christian Yoder/HOU/ECT@ECT cc: Subject: merced You need to call Jim Day 916-441-0131 to discuss any authority issues concerning Merced trades. He can discuss charter particulars. Stewart
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