Re: Draft NPC Report

----- Forwarded by Steven J Kean/NA/Enron on 03/02/2001 01:23 PM -----

Pete Van De Gohm@EES
02/26/2001 03:15 PM

To: Steven J Kean/NA/Enron@Enron
cc: Michael Hicks/EPSC/HOU/ECT@ECT
Subject: Re: Draft NPC Report

Steve:

Need to met with you before May 8th, but would like to do it in the next 2
weeks, to discuss Enron's position on this NPC report. I am currently
coordinating with Andrew Parsons, Mark Holsworth etc. Rob sent me a copy of
the 2 Feb 2001 NPC update letter and draft executive summary received by Ken
Lay. I sent Rob a note outlining the questions I saw the report raising form
an Enron perspective. Comments below.

Pete

---------------------- Forwarded by Pete Van De Gohm/HOU/EES on 02/26/2001
03:06 PM ---------------------------

Rob Bradley@ENRON
02/26/2001 09:57 AM
To: Pete Van De Gohm/HOU/EES@EES
cc: Michael Hicks/EPSC/HOU/ECT@ECT
Subject: Re: Draft NPC Report

This is important enough to get Steve Kean's direction just to make sure all
the right people are in the loop. I am not the right person, although Lay
sent me a note on it.

- Rob

Pete Van De Gohm@EES
02/26/2001 09:36 AM

To: Rob Bradley/Corp/Enron@ENRON
cc: Michael Hicks/EPSC/HOU/ECT@ECT
Subject: Draft NPC Report

Rob:

Thought I'd send you the latest draft of the report, it's 85-90% final (the
recommendations are 100%).

Questions the report raises for Enron:

Is Enron part of the oil & natural gas sector or the banking and finance
sector? Both are looking at information sharing mechanism to mitigate risks
to IT systems. The Banking & Finance sector has been operating an
information sharing and analysis center (ISAC) for over a year. Discussions
with members of the banking and finance sector indicate it has value.

If Enron is a part of the oil & natural gas sector, are we willing to take a
leadership role and enter into a potential LLC with other Council member
companies to form an ISAC for this sector? Cost to Enron would be based on
number of individuals receiving alerts etc., however, it could be as low as
$13K per year. An additional cost would be to appoint an employee to the
LLC's governance body to ensure Enron's needs were addressed. Archie Dunham,
CONOCO's Chairman, has agreed to champion this initiative if the Council
recommends it at the 6 June meeting.

Current coordination:

The legal issues have been worked by a sub-group lead by Tom Carmel, CONOCO.
Mark Holsworth, Corp. Legal has been our representative. Recent DOJ action
regarding information sharing to mitigate IT risks seems to indicate that
anti-trust will not be an issue. Steptoe & Johnson, LLP have undertaken a
review of the liability issues and suggested ways to mitigate them.

Mike Hicks and I have been working with Mark Thibodeaux, Corp. IT Compliance,
and will be meeting with Steve Kean and others in the security and IT
protection efforts in next two weeks.

Recommendation:

Enron participate fully in the oil and natural gas sector's efforts - As
Enron becomes more and more dependant on IT, having a mechanism that provides
tailored vulnerability information and solutions in a "one-stop-shop" format
is valuable and can lead to reduced insurance premiums.

Pete
---------------------- Forwarded by Pete Van De Gohm/HOU/EES on 02/26/2001
08:02 AM ---------------------------

Marshall Nichols <mnichols@npc.org<@listmail.npc.org< on 02/25/2001 06:59:43
PM

- CIP CSC Draft 2-25-01.pdf