Jere, I understand your frustruation and I am very motived to prove out the 
insurance product; however, I do think John has a legitimate concern 
(especially given the fact that this group blew up very publically internally 
and externally and we need to repair the image internally and market 
perception externally in order to be successful in the future) surrounding 
multiple groups covering the same customers with different stories.  You guys 
could not work this out - so I offered a compromise position which involved a 
well coordinated test marketing iniative (this was agreed to by you and John 
at the offsite):
 a) the insurance group was to identify the initial 5 to 10 target customer 
list that ENA would pitch the product to which should give us a determination 
if this is a commercially viable product;
 b) John and Scott would facilitate the contact with the customers to ensure 
a consistent face and story with the customers - if you guys can sit down and 
come up with an alternative that works for you - great; regardless, John had 
promised me that he would do everything necessary to facilitate and promote 
this capability to these customers ASAP;
 c) both groups would put a deal team together and get out there ASAP;
 d) if the test marketing of the product is successful; I agree that we need 
to sit down and discuss how we formally allign the interests of these groups.

This appears to be a reasonable and logical approach on an interim basis.

Regards
Delainey

---------------------- Forwarded by David W Delainey/HOU/ECT on 05/19/2000 
04:30 PM ---------------------------


Jere C Overdyke
05/18/2000 08:50 AM
To: David W Delainey/HOU/ECT@ECT
cc:  
Subject: Re: Potential Candidates for Reliable Reserves  

We are heading down the road of a gate keeper approach which has proven very 
inefficient at Enron in the past.    Our group has already canceled a meeting 
with the CFO of Vintage because of this approach.  Rerarding  industry 
relationships, George Carrick, Mark Tawney and I have extensive relationships 
throughout the upstream sector, know the decision makers and can set up our 
own meetings, all in coordination with the upstream group.  At this time I am 
waiting on John's group to set up our meetings.  Seems very inefficient.

The main objective is to determine if there is demand for the product.  I 
will continue to coordinate through John but we need to meet to clarify roles 
and responsibilities of all parties - how will deals be structured, who will 
price, who will negotiate transaction, etc.