
Date: Thu, 17 Feb 2000 03:33:00 -0800 (PST)
From: colleen.sullivan@enron.com
To: kjames@columbiaenergygroup.com
Subject: Re: International Paper/Union Camp - PLEASE READ
Cc: flombar@columbiaenergygroup.com, joan.veselack@enron.com,
mflewellyn@columbiaenergygroup.com, chris.germany@enron.com,
scott.goodell@enron.com, colleen.sullivan@enron.com,
jeffrey.hodge@enron.com
Bcc: flombar@columbiaenergygroup.com, joan.veselack@enron.com,
mflewellyn@columbiaenergygroup.com, chris.germany@enron.com,
scott.goodell@enron.com, colleen.sullivan@enron.com,
jeffrey.hodge@enron.com

I would like to further clarify our interpretation of what happend on this
particular deal, just so that all the Enron people understand the
circumstances leading up to our losing access to these agreements.

Here's my summary/understanding of what happened:
The transportation contracts for IP/Union Camp were listed on the Exhibit
between CES and ENA as assets ENA would have rights to through March 2001.
We had an agreement with CES that if any parties would not sign agency or
assignment letters on any deals, we would paper the deal through CES, but
would still have access to the contracts.  We understood that all assets
listed on the Exhibits were assets CES owned or controlled for the term
designated on those Exhibits.

Apparently on this particular contract, CES didn't own or control the assets
for the term--they expected to continue to be the supplier past March 2000,
when its fuel supply agreement with IP ends.  However, IP adamantly refused
to allow Enron to step into CES' shoes, and elected to designate a new fuel
supplier effective April 1.  IP also controls its own transportation
agreements and those are being assigned by IP to its new supplier effective
April 1.  Consequently, ENA has no further rights and/or obligations on the
IP/Union Camp agreements past March 2000.

For Feb and March, we need to go ahead and nominate on CES' behalf, even
though IP refuses to sign any agency arrangements.  This means we really
should have a transition employee do this particular nomination--I'll leave
it up to Joan V. how to manage this.   If you have any questions, please
advise.





