Re: Steel

I thought I would send this to you as an fyi only.

Yesterday, I received a call out of the blue from Greg Hermans who will be
heading up the steel trading efforts for EIM. He wanted me to come right up
and talk to them about EnronOnline and how to get their products on the web.
So, of course, we responded immediately and met with them for about an hour
on what they want to do. I knew we were going to start trading steel, but
had not heard from Dave that we were going to do this online. So, I sent
Andy and Dave the message below detailing the discussion and asked for
thoughts/concerns going forward. This will not require any technical
changes, enhancements, etc., and should be very easy for us to handle.... I
received the responses below from Dave, and sent him my response. I am not
sure if he is upset that they called me instead of him, but there is no
reason that I should not have the authority to take care of these things.
And the intention was to inform them both in case they did have concerns.

I am on vacation beginning this afternoon, and will return on Monday (I am
going to send out a note as you suggested in the past before I leave).

thanks-
Sheri

---------------------- Forwarded by Sheri Thomas/HOU/ECT on 10/04/2000 11:14
AM ---------------------------

From: Sheri Thomas
10/04/2000 11:05 AM

To: David Forster/Corp/Enron@ENRON
cc:
Subject: Re: Steel

I would appreciate being privy to some of this information in the future so
that I do not get blindsided going forward. Greg called me directly
yesterday and wanted to discuss this immediately. EIM will be offering the
products and we did discuss the metals effort and coordination of such.

fyi - Amita gave Greg my name as the contact.

Sheri

David Forster@ENRON
10/04/2000 10:48 AM
To: Sheri Thomas/HOU/ECT@ECT
cc:
Subject: Re: Steel

Jayshree approached me on behalf of Greg, Jason and Sean about two weeks ago
to set up a meeting. I informed her at that time that we were in the throes
of Phase 2 launch and that we were focussed on their LME products and that we
should meet after Phase 2.

I have also exchanged voice mails on same with Sean and have had recent
discussions with Bruce Garner on Steel, Enron Network Partners and Enron
Metals and the relationship between them.

As you know, Amita has worldwide responsibility for metals on EnronOnline.
Although the Steel group is under separate ownership from Aluminum and
Copper, there is obviously a degree of overlap.

It is important that the Steel launch is coordinated with our other metals
activities and that all the usual bases are covered (Marketing launch
processes, commercial review of contracts, products and structure, regulatory
compliance, application training, etc.).

I am planning to meet Greg and Sean next week in Houston to discuss the
above, their launch timetable and coordination with an expressed desire to
create an Enron Steel vertical.

Please do not do anything further until I have had an opportunity to meet
Greg and Sean and have assigned someone to take responsibility for
coordinating all of the launch elements and to act as a central point of
contact.

Thanks,

Dave

To: David Forster/Corp/Enron@ENRON
cc:

Subject: Re: Steel

that is why I sent this to you. any thoughts?
thanks
Sheri

David Forster@ENRON
10/04/2000 04:02 AM
To: Sheri Thomas/HOU/ECT@ECT
cc:
Subject: Re: Steel

Sheri,

- Who are you working with within EnronOnline to ensure this fits our
priority list?

Dave

To: Andy Zipper/Corp/Enron@Enron
cc: David Forster/Corp/Enron@Enron, Jennifer deBoisblanc Denny/HOU/ECT@ECT

Subject: Steel

Andy-

We (Jennifer, Rob and I) just met with Greg Hermans who will be heading up
the steel trading group here in the U.S (Jason Seigal and Sean Keenan were
also present). They want to start trading asap - we gathered all the initial
information we would need to get the product type set up. Here are the facts:

Financial products only (but he wants to offer physical products in the near
future. The issue is that back office logistics systems to physically move
the product do not exist - the same challenge the paper guys have).
We are not trading this product OTC yet
The GTC's and long descriptions are in draft format. Harry Collins (Legal)
is working on - Rob Cass has already talked to Harry and I think we are close
on this
The key customer list consists of approx. 50 customers (450 additional) - we
requested this by Friday so that Credit can get started. I will send a note
to Debbie Brackett tonight. As you can imagine, most of these are customers
we are not currently doing business with, and the steel industry has not been
the most profitable the last few years, so I am not sure how many of these
will even get approved.
Back office systems - they have not decided what they are going to use yet -
Sitara, TAGG or some other system (really irrelevant for you, but we will
bridge to whatever system they choose if the number of transactions warrant
this)
They have not determined which index/publication they will use (most likely
something called Metal Bulletin)
The first two product types will be Hot Rolled and Cold Rolled
All products will be offered in USD
We need to determine if the products will be offered by EIM or ENA - I am
fairly sure it will be ENA, but we are discussing with legal. Greg was not
sure...

This may not be news to you, but just in case, I wanted to make sure you were
in the loop. Please let me know if you have any thoughts/concerns.

Thanks
Sheri