True, but the limits and associated P&L notifications relate to commodity 
groups rather than business units - they used to be the same. Unfortunately, 
where we have become more sophisticated and, as in this case legitimately 
hedge a natural exposure with some other commodity, the latter commodity (and 
associated P&L) gets counted in the commodity "cut".

Loss notifications, especially, serve as a "flag", and provided the 
explanation makes sense and everyone who needs to make a decision about it, 
can do so, then it serves its purpose. The other upside is that when, 
sometime in the future, we have to refer back to an event, we have good 
"institutional memory".

I talked to Brent about this yesterday - my advice was that notifications 
would be better drafted by those closest to the positions (i.e. his mid 
office groups)

Rgds
DP

 -----Original Message-----
From:  Shankman, Jeffrey A.  
Sent: Thursday, June 21, 2001 9:11 AM
To: Abel, Chris; Buy, Rick; Nowlan Jr., John L.; Murphy, Ted; Port, David; 
Schultz, Cassandra; Whalley, Greg
Cc: Apollo, Beth; Wilson, Shona; Thibodeaux, Kenneth; Price, Brent A.; Hall, 
D. Todd; Burns, Jennifer; Romero, Araceli; Taylor, Liz; Wallace, Cassi
Subject: RE: Final 6/19/01 Global Products Notification

In this Violation memo, you are taking out positive P&L associated to a nat 
gas posion in the LPG books which is a true hedge versus some long dated 
propane positions.  When you add back the hedge P&L I believe there is no 
violation.

Jeff

 -----Original Message-----
From:  Abel, Chris  
Sent: Wednesday, June 20, 2001 4:25 PM
To: Buy, Rick; Nowlan Jr., John L.; Murphy, Ted; Port, David; Schultz, 
Cassandra; Shankman, Jeffrey A.; Whalley, Greg
Cc: Apollo, Beth; Wilson, Shona; Thibodeaux, Kenneth; Price, Brent A.; Hall, 
D. Todd; Burns, Jennifer; Romero, Araceli; Taylor, Liz; Wallace, Cassi
Subject: Final 6/19/01 Global Products Notification

Attached is the Enron Global Markets Global Products Trading notification 
memo for  5 Day Cumulative Loss for June 19, 2001.  The Office of the 
Chairman for Enron Global Markets is responsible for printing out a hard copy 
of this memo, signing it and returning the hard copy to Chris Abel at 3155a, 
who will forward it to RAC to obtain their signature. 

Thank You


 << File: 6-19 Global Products 5 Day.doc >>