Subject: Re: Risk Management Policy
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Thu, 14 Sep 2000 05:09:00 -0700 (PDT)

I think so--Martha, please get me into this gig.  Thanks DF

Tony Pryor
09/13/2000 04:56 PM
To: Drew Fossum/ET&S/Enron@ENRON
cc:  

Subject: Risk Management Policy

Drew, I thought you might be interested in being a part of this. Does this 
meeting fit your schedule?................Tony
---------------------- Forwarded by Tony Pryor/ET&S/Enron on 09/13/2000 04:54 
PM ---------------------------

	
	From:  Dan Fancler                           09/13/2000 11:24 AM

To: Tony Pryor/ET&S/Enron@ENRON, Bob Chandler/ET&S/Enron@Enron, Lee 
Ferrell/ET&S/Enron@Enron
cc: Maria Perales/ET&S/Enron@ENRON, Dan Fancler/ET&S/Enron@Enron 

Subject: Risk Management Policy

We will meet on 9/18/00 at 2:00 pm in 4262 to discuss Risk Management Policy.

Lee, if you and your staff would like to come, please join in on the fun.

Tony has agreed to move the Policy forward to the next level.  I summarize 
some of the key information below.

The current policy is too restrictive.

We need to better define the type of transactions and who has authority to 
execute and manage. 

Do not include procedures and only discuss policy much like the Corporate 
Risk Management Policy.

Positions will be managed in a portfolio of Gas Commodity positions, however 
not all positions are included in the position limits measurement for this 
policy.  For example the pipelines are long capacity and this can be managed 
in a portfolio without a limit requirement.  Also, TW is long over-retained 
gas and this is a position which does not have to be part of our risk 
management limits.  These positions were created by building a pipeline or 
entering into transport service agreements and seperated approval guidelines 
apply.

North American Natural Gas is the only Commodity Group approved.  

Transport Service Agreements are approved in accordance with ET&S policy #1 
and #2.

Financial Risk Management Agreements are approved within the guidelines of 
this policy.  Financial Risk Management Agreements that create risk are 
allowed by the Corporate Policy but not allowed by the ET&S draft policy.  We 
need to think about limits on the creation of risk from Financial Risk 
Management agreements.