Rod

Thank you for the introduction.

For my part I am responsible for finance & Regulation at Wessex

Our work over the next month is to set out the heads of terms of contracts
between the regulated asset company and the new unregulated service company.

Attached is a note we have prepared setting out payment principles.  You
will see initial thoughts on issues such as who has what risk.

In considering this it may be useful to note some important points about the
UK Water industry, viz
1    The Licence holder (asset company) retains ultimate responsibility -
and criminal liability - for service delivery
2    The UK industry is very political and hence loose contracts are
necessary to deal with unexpected events.
3    The regulatory reporting requirements are very detailed & will require
annual information on the costs of both the Licence holder & (probably) the
service company

On the timing of your vist I am trying to arrange a tour of Wessex & its
assets for Thursday and or Friday next week.  You can also discuss some of
the issues on the contracts with the in house team.  unfortunatly I have
meeting with the regulator on the Thursday & am tied up much of Friday - but
it is probably better for you to spend time with people doing the  real work
rather than me.

Monday can be used for our meeting with the lawyers.  This will probably be
later in the day and go on into the evening.

I will get you a more detailed itinerary soon.

with best regards

Keith

cc John

-----Original Message-----
From: rhaysle@enron.com <rhaysle@enron.com>
To: kharris@azurix.com <kharris@azurix.com>; lgawith@azurix.com
<lgawith@azurix.com>; kwillett@azurix.com <kwillett@azurix.com>
Cc: cskellett@azurix.com <cskellett@azurix.com>; jale@azurix.com
<jale@azurix.com>
Date: 28 June 2000 23:58
Subject: Introduction


>Name:      Rod Hayslett
>Phone:         713-853-6178
>Location:      Houston (Enron Building  - EB4054)
>FAX:           713-646-3708
>EMAIL:         rhaysle@enron.com (or whatever you see as the address to
>this message)
>Background:    20 + years trying to figure out how to make something a lot
>more than a regulated return out of a regulated              business.
>10+ years in the US Navy, reaching the rank of Captain.     Experience in
>Finance, Accounting,               Information Systems and Administrative
>Areas.     Currently have Commercial responsibilty over some
>telecommunications startup services companies relating to Rights of Way and
>fiber optic line rights and              coordinating responsibilities over
>the Pipeline Market Services Area.
>
>Current Job:   CFO of Enron's Gas Pipeline Group. (which means here,
>whatever the boss wants tackled next)
>Home Phone:    281-292-2467
>
>


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 - STRUCTURE OF CONTRACTS (4).doc