Bill, can you set up a meeting to discuss credit issues. just you and I is 
fine.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 05/17/2000 
08:35 PM ---------------------------
From: William S Bradford on 05/02/2000 04:04 PM
To: David W Delainey/HOU/ECT@ECT
cc: Rick Buy/HOU/ECT@ECT 
Subject: Re: Excess Credit Exposure  

Dave,

a)  I do not believe Skilling is aware of the latest updates on our efforts 
to syndicate some of the Canadian exposures.  To my knowledge, the last time 
it was brought to his attention was March 1999 (Blue Range default).  We do 
report our top exposures to him and the Board which includes CNR, 
Petro-Canada, and Talisman on a quarterly basis.  Rob and team are actively 
working with my team to mitigate exposures through other measures.
b) I will be happy to provide insight as needed.  The riskiest commercial 
objections are from Lagrasta's group.
c) We have received margin from Sempra and Duke.  We have a valuation dispute 
with Statoil and are actively working through the details.

Let me know if you need further information.
Bill





David W Delainey
05/01/2000 07:04 PM
To: Rick Buy/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT, Rob 
Milnthorp/CAL/ECT@ECT, Edward Ondarza/HOU/ECT@ECT, Jeffrey A 
Shankman/HOU/ECT@ECT, Raymond Bowen/HOU/ECT@ECT
cc: John J Lavorato/Corp/Enron@Enron 
Subject: Excess Credit Exposure

Guys, I went throught the Credit Margin Exception Report for 4/24/00.  This 
shows our excess credit exposure at approximately $ 391M (after guarantees).  
I have a couple of questions:

 a) Canada (>$200M) - Rick/Bill/Rob - Is the board and Skilling aware of the 
credit positions and OK?   I know Rob has been working on    mitigation plans;
 b) Commercial Objections: (>$67M)
  - Paper - Edward ($27M) - The report shows a number of commerical 
objections to calling for collateral ie) Repap,  Times Mirror and Waste   
Mgt. Can you give me a call to discuss - we may need documentation to support;
  - Gas/Mid-Mkt - Jeff ($29M)- Do you own Cross Timbers Oil Co, Torch Energy, 
Aurora Natural Gas, Seneca Resource Corp and Cody Energy?   We have in these 
cases additional commercial objections to calling for collateral - lets 
discuss;
  - Mariner  ($9M)- Ray we are showing a collateral need of approx. $9.0M - 
given our equity position this may be moot;however, lets discuss.
 c) Margin Call (>$51M) - Rick/Bill - have we been successful in getting the 
margin posted by Sempra, Statoil and Duke?

Canada is a tricky issue; however, we should be able to work down the 
commercial objections and collect on the margin calls to get the number down. 

Regards
Delainey