Subject: RE: Update: Recommendations from 9/18 Meeting on Transaction Expense Controls / Delegations of Authority
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Thu, 20 Sep 2001 06:25:32 -0700 (PDT)

Chip: As you know, my group is working on a DASH numbering system that will enable an "AFE" type cost accumulation by DASH.  Per your last bullet point on the memo below, is Wes going to take the lead on this?  Let's discuss.  Regards, Rick C.

 -----Original Message-----
From: 	Schneider, Chip  
Sent:	Wednesday, September 19, 2001 9:24 PM
To:	Kitchen, Louise; Colwell, Wes; Deffner, Joseph
Cc:	Buy, Rick; Gorte, David; Carson, Rick L.
Subject:	Update:  Recommendations from 9/18 Meeting on Transaction Expense Controls / Delegations of Authority

Below please find a summary of recommendations from a meeting held Tuesday between Chip Schneider, Joe Deffner and Wes Colwell.  It is contemplated that these or similar recommendations will be implemented to control capital and other expenditures related to transaction development within the Americas:

Regional Managers within the Americas (East, West, Canada, Mexico, South America) shall be generally accountable for capital expenditures and other expenses associated with transaction development in their respective regions.
The Regional Manager shall designate one Transaction Leader (Director level or higher) for each individual transaction under consideration and shall be accountable to the Regional Manager.  The Transaction Leader or Regional Manager shall be the only parties authorized to obligate Enron or its affiliates under any contract or to transfer money.
Legal shall provide copies of all draft documents to Accounting, Global Finance and Underwriting.
The Deal Leader shall be responsible for drafting initial DASH, seeking buy-in from management and establishing a time-table for expenditure approval.
The initial draft of the DASH and economic model shall be provided to Underwriting at least ten business days prior to any movement of money (more time may be necessary if financing or ENE BoD approval is required).
Legal shall provide a final Legal Risk Memorandum to Underwriting prior to circulation of DASH.
Global Finance shall provide a final FASH to Underwriting prior to circulation of DASH.
Underwriting shall be responsible for DASH circulation.
Underwriting shall promptly provide Accounting with fully executed DASH to set approved budget limits.
Accounting shall keep records of all expenditures, maintain responsibility for approved budget compliance and sign-off on all contracts and money transfers prior to execution.

Let me know what further thoughts you have.

Regards,

Chip Schneider
713-853-1789
ECN2864