Thanks for the update.  On the potential issues side, what do you mean by 
weekly mark to market?  Don't you mean daily?



	Doug Leach
	01/29/2001 07:11 AM
		 
		 To: Jeffrey A Shankman/HOU/ECT@ECT
		 cc: 
		 Subject: Orion Refining

Having a meeting today with Enron representatives from legal, tax, 
underwriting, accounting, trading controls, finance, trading and origination 
to discuss the merits and risk of the Orion inventory financing. If I have 
overlooked any positives or negatives below, please advise.Will keep you 
posted.
---------------------- Forwarded by Doug Leach/HOU/ECT on 01/29/2001 07:08 AM 
---------------------------
   
	
	
	From:  Doug Leach                           01/29/2001 06:54 AM
	

To: Michael A Robison/HOU/ECT@ECT, John Viverito/Corp/Enron@Enron, Michelle 
Bruce/HOU/ECT@ECT, Brent A Price/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Bjorn 
Hagelmann/HOU/ECT@ECT, James W Lewis/HOU/EES@EES, David Gorte/HOU/ECT@ECT, 
Stephen H Douglas/HOU/ECT@ECT, Jerry Seade/NA/Enron@Enron, Jim 
Goughary/HOU/ECT@ECT
cc: Marc De La Roche/HOU/ECT@ECT, Larry Lawyer/NA/Enron@Enron, John L 
Nowlan/HOU/ECT@ECT 
Subject: Orion Refining

In preparation for our meeting today please find below a list of the positive 
aspects and potential issues related to the Orion inventory financing.

Positive Aspects
Confidentiality Agreement signed
Spread on Enron's money
Hedging opportunities
Retain title to inventory for securitization
Strength of current equity owners
Experienced management
Access to market information
Storage and blending opportunities
Contango play
Spot and term product purchase
Crude and feedstock sale
Export cargo arbitrage
Orion keeps crack spread risk
Wide light/heavy crude spread
Good coker and hydrotreating capabilities
Reformer project
Crude supply contract with Mexico/Venezuela
Good inbound/outbound logistics
Recent success

Potential issues
Insure that there are no liens against Orion impacting Enron's title to crude 
and refined products
Address environmental issues at refinery site
Commitment from equity owners
Weekly true up on yields
Weekly MTM on inventory write ups/downs
Accounting/payables/receivables/lock box issues
Evaluate hedging risk
Address shortage of hydrogen
Review reformer project plans
Review Orion's operations including planned and unplanned maintenance
Review insurance and chartering policies
Current financials
Insure that Jack Stanley has no interest in Orion
Which Enron entity should be contracting party
Review all tax issues
Personnel requirements
Exit strategy