We should catch up on this next week

Mike
---------------------- Forwarded by Mike Jordan/LON/ECT on 08/09/2000 13:56 
---------------------------
   


From:  Ted Murphy                                                             
08/09/2000 13:54	
	
	
	                           
	

To: Mike Jordan/LON/ECT@ECT, Sally Beck/HOU/ECT@ECT
cc:  

Subject: Re: London Risk Reporting  

Mike,
I don't understand the question.  London informatiion was not complete in the 
Corporate system at  11:00 Houston time.  Either London operations or Houston 
operations did not do something.  To me that is the breakdown.  I don't have 
any further knowledge nor do I expect to have any further.  The point of my 
e-mail is to alert you to a reality that I would prefer you not have to deal 
with, i.e., incur the rath of Dave Delainey, John Lavorato, Mark Frevert and 
Jeff Skilling when they understand what happened and based on what inadequate 
management information they were forced to make decisions with.  As I said, I 
am not telling on anyone or accusing anyone of anything but I can virtually 
guarantee the reaction of those people if this were to come to light.  So, I 
suggest that you talk to Sally and create a process by which to insure that 
the possibility of it happening again is minimized.  
Ted



Mike Jordan
09/08/2000 06:34 AM
To: Ted Murphy/HOU/ECT@ECT, Oliver Gaylard/LON/ECT@ECT
cc:  
Subject: Re: London Risk Reporting  

Ted

Still waiting for the breakdown of the failing feed(s) - investigations here 
suggest that there should have been no problem!!

So I am keen to understand faults in process

Ollie - can you help ?

Mike


   


From:  Ted Murphy                                                             
01/09/2000 17:19	
	
	
	                           
	

To: Mike Jordan/LON/ECT@ECT, Sally Beck/HOU/ECT@ECT
cc:  

Subject: London Risk Reporting

Well,
today (or rather yesterday) it happened.  We have been pushing our limits 
hard and the makets here have been very volatile.  We had a large increase in 
North American Natural Gas VAR due to the breaking apart the Rockies/SoCal 
basis correlation.  This am, we were attempting to get firm numbers on the 
effect on our corporate limits so that we could provide 
Jeff/Delainey/Lavorato/Buy/.... the information to make decisions whether or 
not to reduce positions.  The number was not firm until 11 am houston time.  
My understanding is that the Houston numbers were all in before 8 am and that 
we were waiting for London.  While I am sure that there are issues all around 
and I do not think that anyone Senior in Houston is even aware, let alone 
prepared to blame, I fear that this will not always be the case.  I think 
something needs to be changed in our process so that this can be avoided in 
the future.   

Please do not take this as a nasty-gram.  No one is cc'd or bcc'd.  I just 
think that it will be deemed unacceptable.
Any thoughts/comments?
Ted