Message-ID: <15137028.1075863378311.JavaMail.evans@thyme> Date: Wed, 3 Oct 2001 09:29:04 -0700 (PDT) From: l..carson@enron.com To: rick.buy@enron.com Subject: Portfolio group 2002 Budget allocation to Enron Americas Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Carson, Rick L. X-To: Buy, Rick X-cc: X-bcc: X-Folder: \RBUY (Non-Privileged)\Buy, Rick\Inbox X-Origin: Buy-R X-FileName: RBUY (Non-Privileged).pst Rick: Recently I received an E-Mail that you and Louise Kitchen discussed my group's $544k allocation for 2002 to ENA and determined that it was incorrect and should be only $109k with the balance of $435k going to Kevin Garland's group. Actually I did take into account the transfer of the merchant investments to Kevin's group in coming up with the $544 allocation. For the last several years our allocation to ENA has been in excess of $1.1 million so it is less than one-half of historical levels. The $109k is definitely low considering the following services we perform for EA: 1) Don Rollins and one of his Sr. Analysts spend nearly 100% of their time supporting the Thompson/Josey oil and gas group in due diligence, transaction structuring, document preparation, auditing, partnership liquidations, asset sales, etc. (As you know Don creates value several times his salary just in audit recoveries for ENA) 2) Even after the transfer to EPI, ENA still has over $850 million in assets that are maintained in PortRAC, Dash Library, and certain of these asset have Watch list reporting etc. This takes at least one analyst's time. 3) There are other due diligence areas for ENA we support such as power. We have been pretty active recently in power plant purchase due diligence and actually have two of our experienced due diligence managers at a data room this week. 4) We are going to lead the effort to develop a DASH numbering "AFE type" cost control system with ENA being the first customer. Please let me know your thoughts. We had previously allocated Garland's group $544k. If they pick up another $435k, I think that will be excessive and Kevin will be complaining. Regards! Rick C.