Message-ID: <20091609.1075842751959.JavaMail.evans@thyme> Date: Tue, 9 Jan 2001 02:10:00 -0800 (PST) From: shari.stack@enron.com To: steve.hooser@enron.com, gerald.nemec@enron.com, alan.aronowitz@enron.com, wayne.gresham@enron.com, mary.cook@enron.com, dan.hyvl@enron.com, nony.flores@enron.com Subject: PGE due diligence effort Cc: jeffrey.hodge@enron.com, elizabeth.sager@enron.com, travis.mccullough@enron.com, mark.haedicke@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: jeffrey.hodge@enron.com, elizabeth.sager@enron.com, travis.mccullough@enron.com, mark.haedicke@enron.com X-From: Shari Stack X-To: Steve Van Hooser, Gerald Nemec, Alan Aronowitz, Wayne Gresham, Mary Cook, Dan J Hyvl, Nony Flores X-cc: Jeffrey T Hodge, Elizabeth Sager, Travis McCullough, Mark E Haedicke X-bcc: X-Folder: \Gerald_Nemec_Dec2000_June2001_2\Notes Folders\All documents X-Origin: NEMEC-G X-FileName: gnemec.nsf My asst., Kaye Ellis, will be calling each of you this morning to see if you can attend a short meeting today to discuss a due diligence effort with regard to Pacific Gas and Electric Company and its various subsidiaries. We have an overall exposure report from Credit which shows that Enron is exposed to PG&E in virtually all of the commodities that we transact. In the meeting today - Travis and I will help you identify the PG&E entity/entities which may have transactions with Enron concerning your particular commodity. We will ask you to pull the relevant master agreement and provide the information set forth below. Thank you in advance for your help, Shari ----- Forwarded by Shari Stack/HOU/ECT on 01/09/2001 09:57 AM ----- Travis McCullough 01/09/2001 09:12 AM To: Shari Stack/HOU/ECT@ECT, Andrew Edison/NA/Enron@Enron cc: William S Bradford/HOU/ECT@ECT Subject: PGE due diligence effort Here is a list of the information that we will need to collect from each master agreement: Governing law; summary of setoff provisions (in particular, does the contract give us the right to setoff (i) only those transactions under the specific master, (ii) transactions under other agreements between the same counterparties; or (iii) transactions under other agreements between affiliates of the counterparties; (v) all transactions or only those transactions that we elect to offset; summary of termination provisions (automatic upon bankruptcy or insolvency of a party? any notice requirements?) summary of liquidated damages provisions (how computed? provision for two-way LD's (such that even the breaching party gets a payment if they are in the money?) We also need to discuss how we can get comfortable that all transactions were properly booked under the correct master agreement, and that there are no significant "glitches" in our transaction documentation. Travis McCullough Enron North America Corp. 1400 Smith Street EB 3817 Houston Texas 77002 Phone: (713) 853-1575 Fax: (713) 646-3490