Sara:
Please call me or stop by to discuss as they need an answer quickly.  I have 
e-mailed Mark Evans and Justin Boyd about this.

Carol St. Clair
EB 3889
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com
----- Forwarded by Carol St Clair/HOU/ECT on 05/24/2001 08:41 AM -----

	Tracy Ngo/ENRON@enronXgate
	05/23/2001 06:17 PM
		 
		 To: Carol St Clair/HOU/ECT@ECT
		 cc: Greg Wolfe/ENRON@enronXgate
		 Subject: Kaiser US/UK Setoff w/MG and ENA

Carol,

West power is looking to do a financial swap with Kaiser Aluminum & Chemical 
Corporation ("Kaiser Aluminum") whereby Kaiser Aluminium would buy the swap 
and pay ENA float.  Kaiser Aluminum International Inc. ("Kaiser 
International") has a big market presence in the UK and MG has significant 
forward financial and physical metals positions with Kaiser International 
which I believe are quite out-of-the-money.

Can we find out whether or not we can perform a bilateral, affiliate NETTING 
AGREEMENT between Kaiser International and Kaiser Aluminum with MG and EPMI?  
If the UK is going to continue to do short-term new metals business with 
Kaiser International and if we can get comfortable with metals forward 
positions that are OTM, we would like to use this position and leverage off 
of it for trading liquidity in the states.  Secondly, does the netting need 
to just pertain to global financial business or can it include physical as 
well?

If possible, I'd like to see if you and a UK trading attorney can speak about 
the overall concept and briefly address any UK and domestic law conflicts.  
Please call when you have a opportunity to discuss.  ENA is looking to enter 
into a power swap for June '01.  I'm not sure if this concept is achievable, 
and if it is, in the time frame we're facing.  However, if we can't do a June 
swap, then we'll try for a July swap.

Regards,
Tracy