FYI. Thank you for your assistance.  Jim
 -----Original Message-----
From: 	Rogers, Rex  
Sent:	Thursday, August 23, 2001 1:22 PM
To:	Cole, Kate; Callahan, Teresa; Pardue, Larry; Pinder, Lori
Cc:	Davis, Hardie; Derrick Jr., James
Subject:	RE: Requests for Jim Derrick's signature on financial documents 

Kate:  Your memo is timely (and appreciated!).  Jim and I and the other general counsels discussed this topic this morning at Jim's weekly general counsels meeting (Jim and I are receiving a ton of these type of documents).  With respect to subsidiary financial statements requiring Jim Derrick's sign-off, the internal accounting officer and the internal lawyer representing the subsidiary company must initial the documents Jim is being asked to sign;  they are then sent to me (I also initial anything that Jim signs that relates to Arthur Andersen, per Jim's request).  Jim and I are not CPAs and we have little to do with the day-to-day operations of most of these companies, so that is the reason for all the diligence.  It is the responsibility of the general counsel of the subsidiary operation whose financial statements are being audited by AA to ensure that the proper review and initials are on these documents before they come to your group or mine----if not, we send the documents back to them to get the necessary initials.  If you have any problems with anyone who delivers these documents to you, let me know and I will be happy to educate them about this policy.  Bottom line for Jim and me:  We have little knowledge or expertise when it comes to the preparation of the financial statements of these companies, and we are relying on the expertise of our internal accountants who are involved in such preparation----they need to take "ownership" by initialing the documents.   Thanks for your help?.I hope these procedures don't make your job any harder than it already is!.   Regards, Rex.

 -----Original Message-----
From: 	Cole, Kate  
Sent:	Thursday, August 23, 2001 12:06 PM
To:	Callahan, Teresa; Pardue, Larry; Pinder, Lori
Cc:	Rogers, Rex; Davis, Hardie; Derrick Jr., James
Subject:	Requests for Jim Derrick's signature on financial documents 

Please note that, henceforth, all financial statements, balance sheets, Arthur Anderson rep. letters, or the like, should be sent to Rex Rogers for review and attorney initials before they are sent to Jim Derrick for signature.  KC



Kate B. Cole
Director, Corporate Services
Enron Corp.
Tel: (713) 853-1624
Fax: (713) 646-8007
Email: kate.cole@enron.com