24-7 crude Book

I believe Greg W. is coming to talk to you today about this new business.
Further to this, I'd like to ask again how I can get access to VAR (I
believe Lavorato and Sherriff have $5 million they each keep upstairs and
allocate to their businesses as needed temporarily). Is this a Board
question, or do you have the authority to allocate this VAR to me?

On another note, I've been helping Bill Bradford with PGE exposure issues.
If you too need my help, let me know.

Thanks for your help...

Jeff
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 01/04/2001
09:46 AM ---------------------------

John L Nowlan
01/04/2001 09:37 AM
To: Greg Whalley/LON/ECT@ECT, Jeffrey A Shankman/HOU/ECT@ECT
cc: Scott Earnest/HOU/ECT@ECT, Bjorn Hagelmann/HOU/ECT@ECT
Subject: 24-7 crude Book

Per conversation with Greg this morning, until we get board approval for new
book with VAR have agreed to use discretionary VAR as required to negate VAR
effects within global products. Position P/L will have to be reported within
Global Products but we will pull it out as a separate line item at the bottom
of the report. Positions at this time are not an issue but should it become
a concern between now and approval of a new book we will need to address it
as we are the VAR with discretionary limits.