Greetings:
 
Brad Carson and I had a productive telephone conversation with Caroline Emmert this morning. We agreed to proceed as follows to begin untangling the puzzle:
 
Bouse will forward the Excel file that recaps the payments and kWh's since the start of the Enron supply of electricity, November 2001. Note, that even though we have been far apart on a monthly basis, payments and invoices from November 2001 through February 2002 are very close together -- $2,500,850 compared to $2,500,912.  The Excel file with that information is attached.
 
Caroline has the ISO charges for November, December and January, and she will forward those to me via e-mail today.
 
Lisa Gang is now our Enron scheduler, and Caroline will check with Lisa to ascertain if she is using the daily input information from the Hanson Permanente cement plant. The cement plant has been forwarding information on the day ahead and week ahead usage on a routine during the whole period of Enron delivery. Caroline or Lisa will report to me if that information is being utilized.
 
The monthly billing from Houston (Gwen Williams) has not reflected actual usage at Hanson Permanente.  The invoice amounts from Enron reflect only the base numbers from CY 2000 that were imbedded in the contract for annual balancing.  Caroline will check to see what information Gwen is using for her monthly billing and to see if any of Lisa's or the cement plant's daily scheduling make their way to Gwen in Houston.
 
Hanson Permanente must know who is administrating this contract from the Enron side. By interpolation, we are assuming that the responsible party is Murray O'Neil who is Caroline's manager.  Do we have that right?  Lisa is our scheduler, Caroline is working with the ISO and PG&E true ups, Gwen is issuing Invoices based on Lisa's input and Murray is responsible for both Lisa and Caroline. Does that then mean that Murray is where the buck stops. 
 
We may need to meet in the next 30 days to untangle this puzzle, and it would be beneficial for all parties to understand the organizational structure of each organization.
 
We look forward to working with you!
 
Sincerely.
         Earl Bouse
Hanson Permanente Cement
Hanson Aggregates Mid-Pacific
925.426.4084  Direct Dial                      925.426.4060  Fax
Earl.Bouse@HansonAmerica.com     earlbouse@aol.com