Message-ID: <24302299.1075842752732.JavaMail.evans@thyme> Date: Wed, 10 Jan 2001 07:22:00 -0800 (PST) From: gerald.nemec@enron.com To: rebecca.cantrell@enron.com, stephanie.miller@enron.com Subject: PGE due diligence effort Cc: steve.hooser@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: steve.hooser@enron.com X-From: Gerald Nemec X-To: Rebecca W Cantrell, Stephanie Miller X-cc: Steve Van Hooser X-bcc: X-Folder: \Gerald_Nemec_Dec2000_June2001_2\Notes Folders\All documents X-Origin: NEMEC-G X-FileName: gnemec.nsf Stephanie, I have the copy of the contract so don't worry about that. Do you know of any other deals with PGT we currently hold? Becky, You knowledge of any other PGT deals we have along with the tariff provisions would be appreciated. I am trying to prepare a brief for Travis by late tommorrow. Thanks. ----- Forwarded by Gerald Nemec/HOU/ECT on 01/10/2001 03:16 PM ----- Steve Van Hooser 01/10/2001 02:38 PM To: Stephanie Miller/Corp/Enron@ENRON, Rebecca W Cantrell/HOU/ECT@ECT cc: Gerald Nemec Subject: PGE due diligence effort Stephanie and Becky, I need your help with the PG&E credit exposure diligence described in Travis McCullough's e:mail set forth below. Could you please forward me (i) copies of the Service Agreement, Capacity Release materials and executed PGT Agreement for the 67,000 MMBtu of transport acquired in 1998, and (ii) the Tariff provisions that deal with the matters described in Travis' e:mail. Also, what additional transportation transactions do we currently have on PG&E entities. Do you have a feel for that? We are supposed to be helping Credit to get a handle on (a) PG&E exposure and (b) setoff opportunities as to such exposure. Of course, Credit would like our input by Friday. Thanks for your help. Steve Van Hooser ----- Forwarded by Steve Van Hooser/HOU/ECT on 01/10/2001 02:27 PM ----- Shari Stack 01/09/2001 10:10 AM To: Steve Van Hooser/HOU/ECT@ECT, Gerald Nemec/HOU/ECT@ECT, Alan Aronowitz/HOU/ECT@ECT, Wayne Gresham/HOU/ECT@ECT, Mary Cook/HOU/ECT@ECT, Dan J Hyvl/HOU/ECT@ECT, Nony Flores/HOU/ECT@ECT cc: Jeffrey T Hodge/HOU/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT, Travis McCullough/HOU/ECT@ECT, Mark E Haedicke/HOU/ECT@ECT Subject: PGE due diligence effort 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.