Subject: RE: enovate's DPR
From: [email-masked]
To: [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Tue, 22 Jan 2002 11:03:04 -0800 (PST)

Thanks for the info.  As such, we will not prepare violation memos regarding this situation.

 -----Original Message-----
From: 	[email-masked]@ENRON  
Sent:	Tuesday, January 22, 2002 11:24 AM
To:	[email-masked]; [email-masked]; [email-masked]; [email-masked]; [email-masked]; [email-masked]; [email-masked]; [email-masked]; [email-masked]; [email-masked]; [email-masked]; Luce, Laura; Nordstrom, Mary; Rodrigue, Robin; Shively, Hunter S.; [email-masked]; [email-masked]; [email-masked]; Tomaski, Richard; [email-masked]; Trevino, Susan; [email-masked]
Cc:	Abel, Chris; Ayala, Susie; Considine, Keith; Wilson, Shona
Subject:	enovate's DPR

Please note that enovate's general managers have informed Trading Risk
Management that the enovate DPR will reflect a short "net open position"
that will exceed the enovate Board's approved 10 BCF.  This situation will
arise due to the efforts of the trading group to unwind enovate's positions
by moving inventory of approximately 14 BCF out of the NGPL NSS account to
PGL.  This action will leave the "short" hedged positions held against these
NSS volumes in the EMW trading book without the physical offset, creating a
short net open position on the enovate DPR.  ENA has agreed to terminate the
"short" hedges under the "rights of termination" provided them under their
forward contracts. It has been agreed that the termination of these short
forward contracts will occur at the same time that title to the NSS
inventory is transferred. When that termination is completed, the short "net
open position" on the DPR will drop to near zero.  Since this is a temporary
situation which is being managed for the specific purpose of unwinding the
enovate positions, the enovate Board  is approving an exception to the 10
BCF limit only for this transaction to be consummated."

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