Dear John,

I had a meeting with Phillip after our morning discussion about P&L and it 
seems that there may be some issues regarding how I run my book.  It was my 
mistake about whether or not the put options for April Socal were booked 
properly.  The options were booked properly by Larry May and my Book runners 
and the profit was realized for 03/08.   My apologies for declaring that the 
options were not in my position.  Also, the tolls curves are not treated as 
schedule C.  I will adjust the tolls curves to account for basis curveshift 
as needed.  My P&L did not match the Socal position because of physical index 
curveshift and an adjustment to transport.  

The discussion and feedback from Phillip regarding your conversation with him 
concerns me.  I am confident that I run the most accurate physical and 
financial trading book within Enron.   I will stand on the fact that no one 
within the market has a better understanding of his/her position better than 
I.  The physical/financial risk in my book is managed to a standard not seen 
at Enron since I have been here.   Few people realize the great lengths I go 
to to manage the risk in the IM West trading book.  

I am transitioning from my role as a trader on the west desk to one that it 
is responsible for communicating with you directly.  Let's get together and 
discuss exactly what my responsibilities to you will be going forward.   It 
may be that I relied to heavily on my subordination to Phillip Allen up until 
this point.  This may have contributed to my miscommunication with you.  I 
will see that this will not happen in the future.  Thank you for all of my 
added responsibilities.

Sincerely,
Mike Grigsby