I would like to consider some counterparty-specific agreement to solve this 
problem.  What do you think of a side agreement among both KN entities and 
Enron which specifies that a user ID and password have been issued to both of 
KN's legal entities jointly and severally and that transactions for certain 
products (e.g. all financial products) entered into under that user ID and 
password will be deemed executed by KN Trading (their financial trading 
entity) and all others will be deemed executed by KN Marketing (their 
physical entity)?  Do you see any problems here?  Issues re: joint & several 
liability under the ETA but not the Transactions?

Let me know if you need further clarification of the problem.

I haven't run this by Louise yet - she may raise system or commercial 
objections.

Mark
---------------------- Forwarded by Mark Taylor/HOU/ECT on 12/16/99 07:58 PM 
---------------------------
   
	
	
	From:  Bob Shults                           12/16/99 10:28 AM
	

To: Mark Taylor/HOU/ECT@ECT, David Forster, Louise Kitchen
cc: Debbie R Brackett/HOU/ECT@ECT 
Subject: Assignment Issue

We continue to struggle with the issue of counterparties trading under the 
wrong name.

KN Trading typically does financial trades, KN Marketing typically does 
physical trading.  We issued seperate ID's to accomadate this however they 
have traded physical this am with KN Trading.  I discussed this with KN 
(Shawn Magovern) and he expressed great frustration with the idea of running 
seperate machines or web sessions.  Shawn asked us to consider what options 
might be available downstream.  His comment was that they will just have to 
turn the system off and that brokers understand their business and apply the 
company name appropriately.   I explained to Shawn that he can control the 
access of his traders and avoid issues in the future however it does require 
them to transact under the appropriate ID.  

Can we develop some form of agreement that would allow us to "automatically" 
assign transaction according to some strict guidelines (I know this is like a 
Power of Attorney)?  Can we look at systematic enhancements in the future 
which would allow for contractual arrangements based on the product?

I would like to get back with Shawn if we can suggest any other options.