Message-ID: <5873260.1075851721141.JavaMail.evans@thyme>
Date: Tue, 16 Jan 2001 07:51:00 -0800 (PST)
From: torrey.moorer@enron.com
To: jeffrey.gossett@enron.com
Subject: Re: Gas Daily deals in dispute
Cc: sheri.thomas@enron.com, jennifer.denny@enron.com, kim.theriot@enron.com, 
	leslie.reeves@enron.com, errol.mclaughlin@enron.com
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
Bcc: sheri.thomas@enron.com, jennifer.denny@enron.com, kim.theriot@enron.com, 
	leslie.reeves@enron.com, errol.mclaughlin@enron.com
X-From: Torrey Moorer
X-To: Jeffrey C Gossett
X-cc: Sheri Thomas, Jennifer deBoisblanc Denny, Kim S Theriot, Leslie Reeves, Errol McLaughlin
X-bcc: 
X-Folder: \Errol_McLaughlin_Nov2001\Notes Folders\Gossett
X-Origin: MCLAUGHLIN-E
X-FileName: emclaug.nsf

Jeff-

From a legal perspective, the traders are not supposed to have the authority 
to let out another entity from an EnronOnline trade. If the trade is the 
result of a system malfunction or some other uncontrollable issue, the 
customer can get with the trader and agree to reverse out an existing EOL 
transaction with an OTC trade, but Commercial should not be letting customers 
out of EOL deals simply because their traders "clicked on the wrong product". 
This is the policy that Mark Taylor and Legal have had in place since the 
inception of EOL.

I'll get with Sheri and Jennifer and we will see what Legal has to say, but, 
if Mike Maggi and/or John Arnold have been verbally allowing customers to 
change these Gas Daily trades in the past, it definitely creates a problem 
from the perspective of trying to hold them to the same trades now. The best 
advise I can give right now is to make sure that John and Mike do not 
continue allowing customers out of their trades simply because they "clicked 
on the wrong product". The legal responsibility for "clicking on the right 
product" lies firmly with the customer and whenever Commercial starts 
allowing them out of that responsibility it can create serious legal problems 
when and if one of these trades comes back to bite them. 

Torrey








Jeffrey C Gossett
01/16/2001 03:05 PM
To: Torrey Moorer/HOU/ECT@ECT
cc: Sheri Thomas/HOU/ECT@ECT, Kim S Theriot/HOU/ECT@ECT, Leslie 
Reeves/HOU/ECT@ECT 
Subject: Gas Daily deals in dispute

Torrey - 

We have an issue where some of our traders are letting traders out of EOL 
deals b/c they "clicked on the wrong product."  What happens is we end up 
having two deals in our systems,  and the counterparty has no deals in their 
system.  So when settlement goes out they tend to accept the one in their 
favor and reject the one against them.  We always work it out but as you can 
imagine it is a huge headache from everyone's perspective.  Please advise on 
what we can do to put an end to this practice.

Thanks
---------------------- Forwarded by Jeffrey C Gossett/HOU/ECT on 01/16/2001 
02:54 PM ---------------------------


Gregory Carraway@ENRON
01/16/2001 01:57 PM
To: Jeffrey C Gossett/HOU/ECT@ECT
cc:  
Subject: Gas Daily deals in dispute

Forwarded per request of Kim Theriot.
---------------------- Forwarded by Gregory Carraway/Corp/Enron on 01/16/2001 
12:46 PM ---------------------------


Gregory Carraway
01/16/2001 08:50 AM
To: Errol McLaughlin/Corp/Enron@ENRON
cc: Rebecca Ford/HOU/ECT@ECT, Kim S Theriot/HOU/ECT@ECT 

Subject: Gas Daily deals in dispute

The following deals are being disputed by Reliant Energy Services. TAGG is 
showing these deals as Gas Daily, but the counterparty states that they 
should be changed to Nymex trades. They also stated that they were told by 
Mike Maggi that the deals would be changed to Nymex deals: