Mariner

Sally and Ted,

Brenda, Vlady and I met today to discuss Project Door Step for Mariner.
Since Mariner is an E&P company rather than a trading company (or so we
think), I believe our approach may be somewhat different from the other
trading reviews. The review will likely focus on the company's risk
management policies and procedures which we think relates mostly to hedging
oil and gas production. Based on a review of the last Mariner 10-Q (Sept
99), it appears the company does a significant amount of hedging with
financial instruments extending out to 2002. The company also has
significant ($14MM) of deferred losses related to hedging activities.

As discussed with Ted, we have preliminary planned to visit Mariner on Tues.
March 21. As a starting point, Vlady is pulling RAROC information related
to Mariner and Brenda is getting all Enron positions with Mariner. Please
call if you have any questions.

Thanks,

Jim