Message-ID: <6985585.1075846672957.JavaMail.evans@thyme> Date: Fri, 13 Oct 2000 08:25:00 -0700 (PDT) From: susan.scott@enron.com To: tony.jackson@enron.com Subject: Re: 1999 Form No. 2 Review - Legal Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Susan Scott X-To: Tony Jackson X-cc: X-bcc: X-Folder: \Susan_Scott_Dec2000_June2001_1\Notes Folders\All documents X-Origin: SCOTT-S X-FileName: sscott3.nsf That is correct, I returned comments to Accounting, not AA directly. I don't think I sent my comments to Drew, but I don't remember very clearly. Tony Jackson 10/13/2000 03:21 PM To: Susan Scott/ET&S/Enron@ENRON cc: Subject: Re: 1999 Form No. 2 Review - Legal Susan, That is pretty much all we needed for now Susan. I appreciate your offer of the comments, but I will get back to you later if it looks like we need to see those. You mentioned you sent comments to someone at AA. I assume you mean the comments were returned to the NNG and TW accounting folks instead (where Allen is). Also, do you send your comments to Drew as well. Thanks for the quick response. Tony Susan Scott 10/13/2000 02:00 PM To: Tony Jackson/AA/Corp/Enron@ENRON cc: Maria Pavlou/ET&S/Enron@ENRON, Harry Walters/ET&S/Enron@ENRON, Allen Joe/ET&S/Enron@ENRON, Gerrad Heep/AA/Corp/Enron@ENRON, Denise Linthicum/AA/Corp/Enron@Enron Subject: Re: 1999 Form No. 2 Review - Legal I reviewed the 1999 Form 2 for Transwestern and sent some comments to someone at AA (I apologize, I don't remember who, but I think it might have been Allen Joe). If you need to see my comments, I believe I kept a hard copy in my file. I also reviewed the 1998 Form 2 for Transwestern. If you need further information, please let me know. Tony Jackson 10/13/2000 02:36 PM To: Maria Pavlou/ET&S/Enron@ENRON, Susan Scott/ET&S/Enron@ENRON cc: Harry Walters/ET&S/Enron@ENRON, Allen Joe/ET&S/Enron@ENRON, Gerrad Heep/AA/Corp/Enron@ENRON, Denise Linthicum/AA/Corp/Enron@Enron Subject: 1999 Form No. 2 Review - Legal Maria/Susan, My name is Tony Jackson with Arthur Andersen, and I am the experienced staff on the Enron Transportation Services (with a focus on NNG and TW) audit team. Right now, we are in the midst of several internal control reviews related to various risk areas. We are currently testing the risk that NNG and TW reserves (regulatory, legal contingencies, etc.) are inappropriately valued and/or established. One of the controls that Accounting cited to mitigate this risk was that both Legal and Rates reviewed the NNG and TW FERC Form No. 2s prior to issuance. Harry Walters and Allen Joe mentioned to us that there is no formal "sign-off" or approval process by Legal and Rates of the Form 2s, but instead, drafts were sent to the groups and any comments were then reviewed with Accounting. Your names were mentioned as those they sent the 1999 Form 2 drafts to for Legal to review (Maria-NNG and Susan-TW). In order for us to test this control, we need to confirm with your group that this type of review was performed for the 1999 NNG and TW Form No. 2s. What role did you and your group play in this review? Please let me know if you have any questions. Thanks for your time. Tony - AA x33050