Tim,
     Wednesday the California Deputy
Attorney General agreed to the following treatment of email at the Portland
facility.  I confirmed this procedure in writing to him and have not heard
any disagreement:

    In Portland, we proposed to handle business
email related to the topics in your preservation letter by instructing
employees not to delete any email sent or received for 24 hours.  Email that
is personal and does not relate to the business topics you have identified
can be kept, discarded etc. at the employee's pleasure.  Each day there is a
backup made that will capture the email in those employees mailboxes.  After
24 hours, each employee is free to manage their email box as they deem
appropriate to the business needs (e.g. keep, discard).

     In addition, I discussed with the
Attorney General the following procedure for when an employee runs out of
hard disk space on his/her computer.  Again, I have not heard any
disagreement regarding this procedure.

    When an employee runs out of hard disk space
on their computer, it is an acceptable practice to copy files from their
hard disk to the network (where they will be backed up) and then delete
those copied files to make sufficient work space for the employee to work.

    Below are our recommendations for the text
of an email to all EPMI personnel in Portland.  Dan Dietrich has confirmed
that the IT backroom support for this policy is in place and that we may
implement today.  Please send me a copy of the email that you distribute.

    Thanks
    Gary

    Text for your email:

    This message will update employees on the
status of the California Attorney General's order regarding the preservation
of business information.  Please NOTE THE IMPORTANT POLICIES DESCRIBED
BELOW.

    We have negotiated procedures with the
California Attorney General's office allowing each of you to manage your
email and hard drive capacity while still preserving business information.


    Starting today, please implement the
following business information retention policies:

    (1) PERSONAL EMAIL: can be kept, discarded,
etc. at will.

    (2) BUSINESS EMAIL: do not delete any
business email sent or received for 24 hours.  This 24 hour delay will allow
the network to save a backup copy of the email.  After 24 hours, BUSINESS
EMAIL may be kept, discarded, etc. at will.

    (3) WORD PROCESSING FILES OR FILE FRAGMENTS:
do not delete any SAVED FILE or any FILE FRAGMENT.  This policy covers any
FILE or FILE FRAGMENT that you have saved on your hard disk or the network.

    (4) DATABASES: do not delete any information
in DATABASES.

    (5) EXCEL SPREADSHEETS: do not delete any
information in EXCEL SPREADSHEETS.

    (6) CALENDARS OR SCHEDULING PROGRAMS: do not
delete any information.

    (7) OTHER ELECTRONIC DATA: do not delete any
OTHER ELECTRONIC DATA.

    (8) HARD DRIVE CAPACITY: in the event that
you run out of disk space on your personal computer, you may copy files to
the network (where they will be backed up), then delete the files from your
personal computer to create the work space you need.  DO NOT DELETE ANY FILE
BEFORE YOU HAVE COPIED IT TO THE NETWORK.


    In our negotiations we have discovered no
reason to believe that Enron has been singled out for investigation by the
Attorney General.  We will update you as we learn more.

    Please respond promptly to this notice via
email.  Your email should state that you understand and intend to comply
with the important business information retention policies stated above.




=======================================================
This email message is for the sole use of the intended recipient(s) and may 
contain confidential and privileged information. Any unauthorized review, 
use, disclosure or distribution is prohibited. If you are not the intended 
recipient, please contact the sender by reply email and destroy all copies of 
the original message.

To reply to our email administrator directly, send an email to 
postmaster@brobeck.com
BROBECK PHLEGER & HARRISON LLP
http://www.brobeck.com