Drew,

Thanks for the procedures.  We need to add Theres Branney to the list of 
people that can trade.  She is now trading in the storage group in the same 
capacity as Morgan and myself.  We are all extremely confident of her 
knowledge and ability to do these trades.  Is there anyone I need to contact 
to get her name added to this trading authority?

Sue 


   
	
	
	From:  Drew Fossum                           10/25/2000 05:15 PM
	

To: Kent Miller/ET&S/Enron@ENRON, Sue M Neville/ET&S/Enron@ENRON, Morgan 
Gottsponer/ET&S/Enron@ENRON
cc: Rod Hayslett/FGT/Enron@ENRON, Dave Neubauer/ET&S/Enron@ENRON, Bob 
Chandler/ET&S/Enron@ENRON, Michael Moran/ET&S/Enron@ENRON, Danny 
McCarty/ET&S/Enron@Enron 

Subject: Trading Authority

Per your request, Kent, I've talked to Rod and confirmed with him the 
procedures we need to be following on all trading activity until we complete 
final ETS derivative trading rules and procedures.  
1.  For any financial trades, always check with Bob before executing the 
trade regarding FAS 133 hedge treatment.  Rod emphasized the fluid nature of 
the FAS 133 interpretations, so getting the experts involved early is 
critical.  If we decide a trade ought to qualify for hedge accounting, the 
key facts need to be written up and given to the auditors for sign off on the 
same day the trade is executed. 
2.  For trades that qualify as hedges, in addition to (1) above, Kent and 
Dave Nuebauer need to sign off on the trade.  
3.  For trades that don't qualify as hedges, a higher level of approval is 
essential.  Until we get a formal set of rules in place and are up and 
running with our ability to calculate VAR, etc., I would suggest that all 
trades must be approved by Danny and Rod.  I would also suggest that legal 
approval be obtained from either me or Mike Moran.
4.  Sue and Morgan should be allowed to enter into trades, as well as Kent, 
consistent with the above guidelines.  Enron does not require that all trades 
be executed by officers, and that approach should work here also so long as 
items (1)-(3) are adhered to.

I believe these rules are clear and can be adhered to without much 
interpretation or administrative burden.  If anyone has a concern regarding 
this approach, please give me a call.  DF