Message-ID: <28910433.1075845012416.JavaMail.evans@thyme> Date: Thu, 26 Oct 2000 06:42:00 -0700 (PDT) From: alan.aronowitz@enron.com To: mark.haedicke@enron.com Subject: OGC/AGC Approval Policy for More Than One Year Contracts Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Alan Aronowitz X-To: Mark E Haedicke X-cc: X-bcc: X-Folder: \Mark_Haedicke_Oct2001\Notes Folders\All documents X-Origin: HAEDICKE-M X-FileName: mhaedic.nsf 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