Re: Potential Candidates for Reliable Reserves

Jere, I understand your frustruation and I am very motived to prove out the
insurance product; however, I do think John has a legitimate concern
(especially given the fact that this group blew up very publically internally
and externally and we need to repair the image internally and market
perception externally in order to be successful in the future) surrounding
multiple groups covering the same customers with different stories. You guys
could not work this out - so I offered a compromise position which involved a
well coordinated test marketing iniative (this was agreed to by you and John
at the offsite):
a) the insurance group was to identify the initial 5 to 10 target customer
list that ENA would pitch the product to which should give us a determination
if this is a commercially viable product;
b) John and Scott would facilitate the contact with the customers to ensure
a consistent face and story with the customers - if you guys can sit down and
come up with an alternative that works for you - great; regardless, John had
promised me that he would do everything necessary to facilitate and promote
this capability to these customers ASAP;
c) both groups would put a deal team together and get out there ASAP;
d) if the test marketing of the product is successful; I agree that we need
to sit down and discuss how we formally allign the interests of these groups.

This appears to be a reasonable and logical approach on an interim basis.

Regards
Delainey

---------------------- Forwarded by David W Delainey/HOU/ECT on 05/19/2000
04:30 PM ---------------------------

Jere C Overdyke
05/18/2000 08:50 AM
To: David W Delainey/HOU/ECT@ECT
cc:
Subject: Re: Potential Candidates for Reliable Reserves

We are heading down the road of a gate keeper approach which has proven very
inefficient at Enron in the past. Our group has already canceled a meeting
with the CFO of Vintage because of this approach. Rerarding industry
relationships, George Carrick, Mark Tawney and I have extensive relationships
throughout the upstream sector, know the decision makers and can set up our
own meetings, all in coordination with the upstream group. At this time I am
waiting on John's group to set up our meetings. Seems very inefficient.

The main objective is to determine if there is demand for the product. I
will continue to coordinate through John but we need to meet to clarify roles
and responsibilities of all parties - how will deals be structured, who will
price, who will negotiate transaction, etc.