Re: OGC/AGC Approval Policy for More Than One Year Contracts

Alan, I like your suggestions. Please forward your e-mail to the rest of the
ogc to facilitate discussion. I would like to finalize this policy next
week. Mark

Alan Aronowitz
10/26/2000 01:42 PM

To: Mark E Haedicke/HOU/ECT@ECT
cc:
Subject: OGC/AGC Approval Policy for More Than One Year Contracts

Mark:

Got your voice mail on this. I wasn't sure if you were suggesting the policy
for trading contracts or all contracts of greater than a year.

My thoughts are as follows:

1) Policy Scope: I think we need to address whether the Policy will extend to
trading as well as origination transactions. As you know, often there is a
very blurry line.

2) Existing Masters: If a master is in place, confirmations will be used for
terms of one month to greater than one year. I don't think it will be
practical for us to approve these confirmations before signature unless there
are material modifications done to the pre-approved confirmation template in
the master, which would require Legal approval in the present state of
affairs. I assume the Policy would only apply to individually negotiated
contracts outside a Master Agreement.

3) Order of Magnitude: We should consider having a dollar figure (determined
simply by multiplying the notional or contract volume x the contract price or
the Enron financial commitment amount), coupled with the one year or greater
term, that would require the additional OGC/AGC approval in order to make
sure the requirement is imposed only for higher dollar contracts.

I would be happy to discuss this with you further.

Alan