Michelle,
?
We faxed a 57-page package to you on Friday. Let me know if  you didn't 
receive it. In the meantime, my secretary is faxing you the KPMG  letter to 
Doug Cargill, which is identical to all the other letters that were  sent to 
non-union employees.

>>>  <Michelle.Cash@enron.com> 12/12/00 08:55AM >>>

Dean, to  whom did you send the package last week?





"Dean Crawford"  <dcrawford@davis.ca> on 12/12/2000 10:09:11 AM

To:??  <Michelle.Cash@enron.com>
cc:?? "Brian Hiebert"  <BFH@davis.ca>,  <Finley.Biggerstaff@enron.com>,
?????  <Kathy.Neal@enron.com>,  <Peter.del.Vecchio@enron.com>,
?????  <Rick.Johnson@enron.com>,  <Timothy.Callahan@enron.com>
Subject:? Re: Celgar - Asbestos  Claims



Michelle,

Sorry, I should have been more clear on  the 4 - 6 % vacation? pay. That is
the statutory minimum under the  Employment Standards Act. It? applies to
non-union employees. It only  applies to union employees if the? equivalent
provisions in the  collective agreement do not "meet or exceed" the? Act's
provisions.  Since the collective agreement's provisions are better than
the provisions in  the Act, the Act's vacation pay provisions do not apply
to? union  employees.

In terms of the payment schedule, for union employees  the? collective
agreement stipulates they may take their vacation pay at  the start of? the
year. I believe Celgar applies a similar policy for  non-union employees,
but? I'll check on that. When their actual time for  vacation comes up, they
may? actually have to take that time off without  any pay if they've already
elected? to take the pay earlier.

For  both union and non-union employees, vacation pay is earned? and  accrued
in one year and paid out the next. So in 2001, all Celgar  employees? will
be entitled to vacation pay based on a percentage of  their 2000? earnings.

With respect to the standard employment  contract, there really? isn't one,
save for the letter of employment  that KPMG sent out to all? employees. The
letter from KPMG to Doug  Cargill is a sample. It was in the? package I sent
on Friday last week.  If you don't have it, please let me know and? I'll
send it.

There  are also position descriptions for every union and? non-union
employees  that are given to the employees upon hiring. These might? also  be
considered part of the contract of employment, though they are  not
incorporated into a letter of employment.

Hope that answers your  questions. Please let me know if I may? be of
further  assistance.

Dean

>>>?  <Michelle.Cash@enron.com> 12/11/00 01:25PM  >>>

Thanks,? Dean.

Two questions have arisen based  upon your diligence? summary:

1.? Do you have a copy of the  "standard" employment? letter?? We haven't
seen it (or, at least I  haven't).
2.? What? is meant by the 4-6% vacation pay?? How  does that work?? How? are
the pre-payments made?? Does the  person get the money early and then? not
get paid for time off later  on?? Additional explanations would be?  helpful.

Thanks.

Michelle





"Dean  Crawford"? <dcrawford@davis.ca> on 12/11/2000 02:10:27  PM

To:??? <pdelvec@ect.enron.com>,?  <Michelle.Cash@enron.com>
cc:?? "Brian Hiebert"?  <BFH@davis.ca>
Subject:? Celgar - Asbestos?  Claims



Peter & Michelle,

Brian Hiebert forwarded to  me? Peter's questions regarding the risk of
asbestos litigation at?  Celgar.

Under the Workers Compensation Act, employers in  British?? Columbia are
required to contribute to an accident fund  which provides?? compensation
for
injuries or occupational  diseases arising out of employment.? In?  turn,?the
Act?provides employers statutory immunity?  from?damages? in respect of any
personal injury, disablement  or? death arising out of and in? the course  of
employment.

The? accident fund would cover asbestos claims.  There are no
exceptions?which? would allow asbestos  litigation?against employers.? The
Act? does?not  prohibit?litigation against third parties, eg.
manufacturers
of  asbestos, but employers, as stated, are immune from? such?  actions.

Compensation is payable if the worker sustains? pulmonary  injury by a
disabling form of asbestosis. We will make the? appropriate  enquires about
any? compensation paid to Celgar?  employees.