Mike,

I had a short conversation with Michael Brown regarding this organizational announcement.  As you can see, Eric Shaw is now responsible among other areas LNG terminal development in Europe.  Michael explained that this expansion of EEL's efforts was at the initiative of John Sheriff.  He recommended that you and John have a conversation in order to agree on our groups responsibilities and efforts.  As per our 2002 plan we have already begun the review of Europe to determine the economic feasibility of a terminal with the objective of making a determination in Q1 2002.

I agree with Michael in that it would be my preference for you and John to iron this out as opposed to having conflicts at the working levels among our groups.  Obviously, we need the EEL gas desk to make a sharp market for current and future LNG deliveries.

My pitch to John would be that we would like to have a similar relationship with EEL as we do with ENA.  (i.e. they make a market for pipeline gas and we develop terminals, we take terminal positions, we build and manage the global Enron merchant portfolio, etc.)  Two obvious benefits to our current structure are a coherent global LNG strategy and one risk book to manage the associated business risks.

Regards,
Eric

 -----Original Message-----
From: 	Enron Europe General Announcement/ECT@ECT   On Behalf Of Enron Europe Office of the Chairman
Sent:	Tuesday, October 16, 2001 9:42 AM
To:	ECT Europe@ENRON
Subject:	Organization Announcement



We are pleased to announce the following changes to our Continental European Commercial team.  Three
primary groups will be headed by Eric Shaw, Paul Mead and Gregor Baumerich all of whom will report to
the Enron Europe Office of the Chairman.

Eric Shaw's team called "Continental Origination" will include:
1.  Continental Gas trading and origination including the Frankfurt employees that
     work on gas.  For this segment, Eric's reporting line will be to Richard Lewis.
2.  All gas fired generation development on the continent or any other non-renewable energy
     asset (i.e LNG).
3.  Origination in Central and Eastern Europe.
4.  A small team to work on large structured transactions Europe-wide.
5.  Principal management of offices in Central and Eastern Europe.

Paul Mead's team called "Regional Power" will include:
1.  Power trading and origination in Netherlands, Belgium, Spain and Italy.
2.  Power trading in Poland.
3.  Renewables trading everywhere outside of the UK.
4.  Principal management of the offices in the Netherlands, Italy and Spain.

Gregor Baumerich's team called "Continental Power" will include:
1.  Power trading and origination in Germany, Switzerland, Austria, France and Slovenia.
2.  Cross-border sales into Italy (in cooperation with Paul's team)
3.  Power trading in Central and Eastern Europe.
4.  Principal management of the offices in Germany and Switzerland.

Andreas Radmacher remains the country manager for Germany and will report jointly to Eric and Gregor.

Eric, Paul and Gregor will be distributing details of their organizations in the near future so that
we all fully understand responsibilities in their areas.

John and Michael