We have been working hard over the past three months to restore normalcy to the non-debtor companies in the EGS family of asset-based businesses.   We are doing our best to operate on a business as usual basis, and continue the regular, consistent programs we previously provided.  That is why earlier this year we paid performance bonuses and merit increases to most non-debtor employees, in the ordinary course of business. 

At the same time, I understand that events of the past few months have been disturbing and left many with a sense of uncertainty about their future.  We realize that you need some sort of "safety net" to allow you to be comfortable staying here as we work to reorganize.  With this in mind, I am pleased to inform you that we have put in place a severance plan for U.S. employees of certain non-debtor companies.  We have wanted this program for some time, but even as a non-debtor company we had to work extensively with consultants and creditors in securing its approval.

The severance plan provides that, under most circumstances, terminated employees would be eligible for two weeks of base pay for every full or partial year of service.  In the case of a termination due to reorganization, the minimum compensation would be eight weeks of pay and the maximum would be fifty-two weeks.  The details and restrictions to this plan are explained in the plan summary for your company's plan, which can be found on the ETS HR link on the Enron Transportation Services intranet site under "ETS HR Manuals". It can also be accessed by clicking on the attached weblink:  http://hrweb.enron.com/businessUnits/ets/etsHRmanuals.asp . 

I hope this plan will give you a bit more peace of mind and allow you to continue the excellent work you have been providing in our ongoing businesses.  Please contact your HR representative, if you have any questions about the severance plan or related matters.

Stan