Proposed alternative email to those employees identified as involved in California:

Re:  Data Retention

     "Due to the various regulatory proceedings ongoing in California, please do not delete any email or electronic data that relate to the California market.  Deletion of such data could subject both you and the Company to allegations of deliberate destruction of evidence, contempt of court, and civil and criminal penalties.  To preserve such data please create a folder entitled "California Data" and move all emails and other data to that folder.  Thank you for your cooperation."

Comments?   

 -----Original Message-----
From: 	"Molland, Michael E." <MMolland@brobeck.com>@ENRON [mailto:IMCEANOTES-+22Molland+2C+20Michael+20E+2E+22+20+3CMMolland+40brobeck+2Ecom+3E+40ENRON@ENRON.com] 
Sent:	Wednesday, June 27, 2001 8:02 PM
To:	Williams, Robert C.
Cc:	Sanders, Richard B.; 'mlk@pkns.com'; 'sbishop@gibbs-bruns.com'; 'mtuohey@velaw.com'; Fergus, Gary S.
Subject:	Discussion of document retention policy for EES

 	Bob Williams, Andrew Edison, Michael Molland, Amanda Smith, and two
IT professionals working with EES, Jon Eastlund and Pete van de Gohn, today
discussed a going forward document retention policy for EES as a result of
the California AG's subpoena. This is a summary of our discussion.
*	Agreement with AG with respect to EPMI-Portland: I (per my
conversation with Gary Fergus) confirmed that the document retention policy
that was negotiated in December, 2000 with the AG with respect to EPMI in
Portland is as follows:  All employees are instructed not to delete any
e-mail for 24 hours.  Each 24 hours a backup "snapshot" of the entire e-mail
server in Portland is taken.  After 24 hours, employees may delete e-mail.
This policy has been in place since mid-December and back-up tapes should
exist for e-mail for each day from mid-December through the present.
*	Description of E-mail server organization within EES:   All EES
employees are on one of two e-mail systems: (1) the exchange server/Legacy
system or (2) Lotus Notes.  The exchange/Legacy system is run off of three
servers located in San Ramon, California,  Costa Mesa, California,  and
Phoenix, Arizona.  The Lotus Notes server is in Houston.  The majority of
EES personnel in California probably are on the exchange/Legacy server, but
there is no way of knowing who is which server without individually
checking.   EES personnel who were originally hired in California probably
use the Legacy  system. Generally,  the only in-California personnel who use
the Lotus Notes system are those who were originally hired by EES to work
outside of California. Virtually all EES employees outside California use
the Lotus Notes system.
*	Current e-mail retention of Legacy system: The customary practice is
to keep daily back up tapes, which are over written weekly, as well as one
weekly snapshot of the system, which is overwritten after 30 days. As of
last week, the exchange/Legacy server is being preserved as follows:  the
daily and weekly tapes are no longer being overwritten and are being
preserved by Jon Eastlund.  (Jon is checking with his subordinate in Costa
Mesa to confirm that this is also being done in Costa Mesa).  Jon reports
that the earliest weekly back up tape which is still preserved dates from
May 25th. He is keeping that tape in San Ramon until it can be picked up by
Brobeck.
*	Retention of e-mail of Lotus Notes System: The Lotus Notes server is
backed up every day, but the back tapes are erased after seven days and this
policy is continuing. As of several weeks ago (when B. Williams first sent
out notification to Pete Van de Gohn and the IT staff in Houston) the Lotus
Notes server is being preserved as follows:  the auto purge and the delete
functions on the computers of certain key personnel have been disabled for
certain EES personnel(e.g. Sunde and Benevides).  In addition, more
recently, the auto purge function was disabled on the computers of
additional personnel (the Golden Bear team) who use the system.  As of
today, Pete will disable the delete function for those additional personnel
as well.
*	Going forward, we discussed several different policies that EES
might institute.  First, we discussed the idea of instituting a policy like
that in place at EPMI in Portland (i.e. preserving the daily back up tapes
that are already being made- but overwritten after a week or so-in the
ordinary course of business).  This policy will create a significant amount
of information that will be difficult and expensive to search if it is
requested.  However, it is apparently consistent with the policy in place at
EPMI- Portland and is possible to do on both e-mail systems. Second, as an
alternative to preserving backup tapes we discussed disabling the delete
function on the computers of key personnel. This is now being done for the
Lotus Notes system. However we understand that the exchange/Legacy system
may not have an auto purge function. Jon will check whether the delete
disabling function can be accomplished on the exchange/Legacy system and
report back. This second alternative preserves e-mail that will be
relatively easy to search for production. However, it may be difficult to
implement for California personal on the legacy e-mail system. Third, we
discussed instructing key EES personnel at issue to move all potentially
responsive e-mails into folders on the system which may they be protected,
reproduced and reviewed.This would be the least burdensome potentially
leaves us open to the "fox is guarding the henhouse" argument by the AG.
*	Data Servers:We discussed data servers briefly. All personnel are on
different servers for their word documents and spread sheets. This system
has no autopurge function. However, the only way that a document can be
deleted is if a user actually deliberately deletes it from the system.
Accordingly, there seems less need to initiate further backup of this
server.
*	Finally, we agreed EES lawyers should send e-mails to all key EES
personnel confirming our earlier instruction to them that they not delete
e-mail documents or messages. A draft e-mail on this subject follows:

	This e-mail confirms that EES has instituted an interim document
retention policy as a result of the investigation 	commenced by the
California Attorney General.	Until further notice, please do not delete
any non-personal e-mail from 	your inbox or any documents from the data
servers. In lieu of deleting any of your e-mail please transfer it to a
folder in 	your e-mail system for storage. If you need instructions on
how to do this please call ---------.









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