ETS risk management policy revisions

pls print. df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 12/01/2000
01:10 PM ---------------------------

From: Dan Fancler 12/01/2000 11:28 AM

To: Drew Fossum@ENRON, Tony Pryor/ET&S/Enron@ENRON, Jerry
Peters/NPNG/Enron@ENRON, Lee Ferrell/ET&S/Enron@Enron
cc: Bob Chandler/ET&S/Enron@Enron

Subject: ETS risk management policy revisions

I have included Drew's recommendations and have amended the 11/6/2000 drafts
of the ETS Risk Policy and Risk Procedure. The significant change made was
to take out references to Hedging and Non-Hedging Transactions (II A. & B.
have been taken out). We will just call them all Derivative Transactions. I
would like Tony Pryor to arrange a meeting with all parties to move these
documents forward, an alternative is to continue to use the Corporate Risk
Management Policy and just set the trading limits as part of the Corporate
Policy.

Cassandra Schultz in RAC has not responded to the policy and I plan to
follow-up with her after we meet to discuss.

Dan