Message-ID: <32578920.1075863608749.JavaMail.evans@thyme>
Date: Fri, 30 Nov 2001 15:13:04 -0800 (PST)
From: diana.scholtes@enron.com
To: premierpumpcompany@home.com
Subject: FW: Update
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 -----Original Message-----
From: =09Belden, Tim =20
Sent:=09Friday, November 30, 2001 8:49 AM
To:=09DL-Portland World Trade Center; DL-San Francisco
Subject:=09Update

There have been no "official" developments relating to Enron North America =
or the Portland office that I am aware of since the floor meeting on Wednes=
day.  The news of the Europe office closing so suddenly has certainly been =
unsettling.  Absent any tangible news pertaining to the fate of our office =
I thought that I could, at a minimum, try to explain to people what I've se=
en going on over the last couple of days.

On the trading side we are doing several things.  First, we are trying to h=
onor as many of our physical delivery obligations as possible.  Several cus=
tomers have stopped making deliveries to us which is making it impossible f=
or us, in turn, to honor all of our physical deliveries.  In these circumst=
ances we are constantly updating our customers on the status of their sched=
ules so that they can make alternative arraingements.  The Cash Trading, Sc=
heduling, Services, and Real Time groups are doing an unbelievable job with=
 this.  I am impressed at how capable, professional, and calm our team has =
remained.  On the Term Trading side we are working with our customers to cl=
ose out positions.  This process is going very smoothly as well.  We traded=
 a record volume yesterday as our customers reduced their exposure to us.  =
The Term trading team has done an excellent job with this.  Third, on the M=
iddle Market and Origination side we are trying to work with customers to b=
ring cash in the door.  Many customers owe us money due to out of the money=
 future positions.  Many customers would prefer to settle up with us now ra=
ther than in bankruptcy if that is what ends up happening to us.  We have b=
rought a significant amount of cash in the door as a result of these effort=
s and saved our customers from going through a potentially onerous bankrupt=
cy proceeding.  I am very appreciative of the efforts of our Origination an=
d Middle Marketing team that has made this happen.

On the bright side, I remain optimistic that someone will buy or fund the N=
orth America gas and power businesses.  While it is impossible to handicap =
anything these days with Enron I am seeing some very positive signs on this=
 front.  Unlike the Dynegy deal, which required Dynegy to purchase the very=
 profitable core business along along with the rest of Enron's baggage, the=
 deals being considered now would likely involve only the core business.  I=
 don't know whether these deals happen, and if they do, I don't know what f=
orm the core business takes as a result.  Chris Calger and I have been part=
 of the team talking to our potential suitors.  We will both be in Houston =
through the weekend and into early next week working on this.  We will upda=
te people as soon as possible as things unfold.

I know that this situation really sucks.  Given the anxiety and uncertainty=
 that we are all feeling people are doing a great job keeping focused and s=
taying positive.  I think that things are going to unfold very quickly from=
 here -- most likely in the next week or two.  Please hang in there.

Tim
(on behalf of Tim and Chris)