I believe Greg W. is coming to talk to you today about this new business.  
Further to this, I'd like to ask again how I can get access to VAR  (I 
believe Lavorato and Sherriff have $5 million they each keep upstairs and 
allocate to their businesses as needed temporarily).  Is this a Board 
question, or do you have the authority to allocate this VAR to me?  

On another note, I've been helping Bill Bradford with PGE exposure issues.  
If you too need my help, let me know.

Thanks for your help...

Jeff
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 01/04/2001 
09:46 AM ---------------------------


John L Nowlan
01/04/2001 09:37 AM
To: Greg Whalley/LON/ECT@ECT, Jeffrey A Shankman/HOU/ECT@ECT
cc: Scott Earnest/HOU/ECT@ECT, Bjorn Hagelmann/HOU/ECT@ECT 
Subject: 24-7 crude Book

Per conversation with Greg this morning, until we get board approval for new 
book with VAR have agreed to use discretionary VAR as required to negate VAR 
effects within global products. Position P/L will have to be reported within 
Global Products but we will pull it out as a separate line item at the bottom 
of the report. Positions at this time are not an issue but should it  become 
a concern between now and approval of a new book we will need to address it 
as we are the VAR with discretionary limits.