fyi
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 12/07/2000 
09:51 AM ---------------------------
   
	
	
	From:  Christian LeBroc @ ENRON                           12/07/2000 09:40 AM
	

To: Chris Abel/HOU/ECT@ECT, Susan D Trevino/HOU/ECT@ECT, Michael 
Benien/Corp/Enron@ENRON
cc: Jeffrey A Shankman/HOU/ECT@ECT, John L Nowlan/HOU/ECT@ECT, Ted 
Murphy/HOU/ECT@ECT, Bjorn Hagelmann/HOU/ECT@ECT, Homan Amiry/LON/ECT@ECT, 
Cassandra Schultz/NA/Enron@Enron 
Subject: Liquids VaR violation

Liquids VaR for effective date Dec. 06 is $8.5MM, a seven percent violation 
of its limit.  The cause of the violation was due to the following factors.
Company wide crude position got shorter 6.3MM barrels
Short NG from Jan-Feb-01 of 1.2 BCF.  (EOL trade placed in error, position 
Nowlan intended for was 10 contracts/month instead of 10 contract/day.)

With component VaR attached below, it is clear that crude product resulted 
the most VaR increase.  Keeping everything constant, if Nowlan gets out of 
his NG position, VaR would be $7.8MM.  



Please contact me for questions

Christian x58062