Attached is copy of the letter from the Deputy AG, which purports to
summarize the status of EES's planned response to the AG's subpoenas. As
these things go it is not grossly inaccurate. I suggest we send a clarifying
response that makes the following points:

	. All discussions with the AG, and any interim production of
documents, are made without prejudice to our rights to stand on any and all
objections to the subpoena if the AG files an enforcement action.
	. We have more objections to their proposed protective order than
are reflected in their letter. However, we will modify their proposed
protective order and send them an order acceptable to govern the production
of certain in-state EES documents in the next few days.
	.We are in the process of providing notice to all commercial
accounts (without regard for any other definition) that their contracts have
been requested and may be produced to the AG. Whether our duty, if any, to
resist production under the terms of some of these contacts has been
discharged is unclear and we don't agree that it has been discharged.
	. Without waiving any of our objections to either the investigation
or the subpoena, we will voluntarily produce documents which reside within
California which are clearly and unambiguously called for by the subpoena ,
on the condition that we reach an acceptable confidentiality order to govern
their production. We are ready to begin doing so on or about July 30.

	I suggest we send this letter before the close of business today.
Please let me know if you think we should modify this position, or add to
it.




> -----Original Message-----
> From:	Paul Stein [mailto:Paul.Stein@doj.ca.gov]
> Sent:	Friday, July 13, 2001 7:32 PM
> To:	mmolland@brobeck.com
> Subject:	Status of EES Response to AG Subpoenas
>
>  <<ees 071301.wpd>>

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