Rod,

Enron North America is looking to enter into power swaps with Kaiser Aluminum 
& Chemical Corporation starting June 2001.  I'm seeing in the credit system 
that MG plc has forward financial metals positions with Kaiser, however I 
need clarification on whether the swaps are done with Kaiser Aluminum & 
Chemical Corporation or Kaiser Aluminum International Inc.  Secondly, is 
there a Master ISDA Agreement governing those swaps?  In pulling the mtm 
monthly breakout, it appears that MG plc is OTM north of $10MM US and the 
liquidation of that portfolio occurs mostly in cal '02.

Given Kaiser's limited credit line, I'd like to look into the potential of 
setting off financial exposures in the UK and US in cases of default.  Kaiser 
is looking at other businesses with Enron and this could be quite fruitful to 
tap into in order to increase trading liquidity going forward.

In summary, we need to answer at minimum the following:
? confirmation of which Kaiser entity is financial transacting with MG plc
? volatility of the metal positions that go out to Jan '04 to ensure how 
quickly this out-of-the-money position can move
? what type of paper is confirming the swaps (whether long-form confirms or 
Master ISDA)
? what credit/legal terms and laws may affect our efforts to establish a 
Netting Agreement for UK and US financial

Can you help me in coordinating a meeting with London legal/credit and 
Portland credit/Houston legal to discuss pertinent issues associated with a 
Netting Agreement between Kaiser (single entity or multiple entities) and 
Enron entities (MG plc and ENA) as soon as possible.  Please let me know your 
thoughts to the above and who we need to contact to get the above points 
addressed.  In Houston legal, Carol St. Clair is available to work on the 
drafting of such a Netting Agreement and is speaking with Sara Shackleton 
about the concept as well.

Please let me know as soon as possible your comments to the above and in 
setting up a conference call to push this forward.

Thanks,
Tracy