Eastern Canada LDC gas coverage

Geoff/Hunter,
If this agreement works for all parties, I want to ensure this plan is
communicated to the East/Mid-West regions to provide communication across the
Enron created regional boundaries.

Please advise.

Thanx,
Laura
----- Forwarded by Laura Luce/Corp/Enron on 02/12/2001 12:00 PM -----

Eric LeDain@ECT
01/29/2001 04:02 PM

To: Laura Luce/Corp/Enron@Enron
cc: Rob Milnthorp/CAL/ECT@ECT, Geoff Storey/HOU/ECT@ECT, Jonathan
McKay/CAL/ECT@ECT
Subject: Eastern Canada LDC gas coverage

Laura,
Geoff and I talked over the coverage on the eastern Canada LDC's (Union and
Consumers in particular).

Presently the following occurs:
i) Calgary origination covers eastern industrials and some structured LDC
business (eg. asset mgmt or unbundling issues);
ii) Calgary trading covers one month Empress sales to the LDC's;
iii) Geoff and his middle marketers cover Union and Consumers for mid market
storage or transport plays in Ontario (or the US for Union and Consumers
assets in the US), plus US gas supply into Panhandle or ANR transport held by
the LDC's. Geoff of course also does the Dawn, Parkway etc. trades. Calgary
origination also does some mid market deals with Union.

Canada origination is in the process of hiring a director and manager for the
Toronto office to cover gas eastern LDC's and industrials. Offers went out
to these individuals last week.

Here's what we would see as the going forward arrangement:
i) The new Toronto based originators, with support from Calgary origination,
will handle all structured products with the eastern LDC 's. This would
include longer term transport and storage arrangements and unbundling
services, risk management products, and term commodity sales or purchases,
physical and financial. Basic middle market deals within Canada would be
done by the Toronto originators working with Geoff, just as any middle
marketer dealing with the trader. There would be on-going coordination with
Geoff et al in Houston to make this work;
ii) Calgary trading will continue to cover one month Empress sales;
iii) All gas supply for the LDC's bought to be put onto their US pipes, will
be done out of Houston by Geoff et al. Toronto would be advised of any
transactions just to be kept up to date on the LDC's actions;
iv) Shorter term (seasonal or less) storage or pipe positions taken by Geoff
to manage trading positions in Ontario or the border points, or to create
opportunities, will continue to be done by Geoff et al. For any longer term
positions, Toronto origination and Geoff will work together to ensure value
is maximized.

Laura, please give me a call (403-974-6741) with any questions on this.
Geoff, if anything doesn't look right, let me know.