Re: Bad Trader

Customer has been notified that this deal is subject to a satisfactory LC.
Please let me know if you need additional info.

From: Russell Diamond
09/26/2000 10:20 AM

To: Tom Moran/HOU/ECT@ECT
cc: William S Bradford/HOU/ECT@ECT, Veronica Espinoza/Corp/Enron@ENRON, Scott
Neal/HOU/ECT@ECT
Subject: Bad Trader

Please add Dan Junek to your list of 'Bad Traders" he entered into two
transactions with National Energy and Trade, LLC, without notifying Credit of
the transactions. Both transactions were October one month Physical Sales of
Natural Gas for a total of 232,500 mmbtu's at index plus .0050. Total
Delivery exposure is roughly $1.2MM. A Letter of Credit has been required
for this trade.

Veronica Espinoza had a conversation with Dan within the past month,
explicitly stating our credit concern for this counterparty and told Dan not
to trade with the counterparty unless it was approved by Credit. The
counterparty was added to the Credit Watch List after this conversation last
month.

Regards,
Russell