Sally

Thank you for taking the time to see me when I was in Houston, and for lunch. 

I am working on a detailed comprehensive plan of action to enact the changes 
we discussed re the settlement and confirmations procedures transfer. Due to 
the volume of work that was on my desk upon my return this is not coming 
together quite as quickly as I would like and therefore we are going to have 
to look at it piece by piece. 

We need to issue a new authorised signatory list this week for Enron 
Australia Energy and Enron Australia Finance Pty Ltd due to changes in the 
dealer structure and therefore we have decided that this would be a good 
opportunity to make the change to the approval of confirmations. 

As agreed, we will have Sydney office take over responsibility for signing 
all confirmations. This means they are still prepared in Sydney, as they are 
now, with the change of procedure being that they will now be signed in 
Sydney and faxed from here to our clients. The primary signatories will be 
the Managing Director (Paul Quilkey) or the Chief Financial Officer (Heidi 
Mason). In the event of both being unavailable they will be signed by the 
Senior Legal Counsel (David Minns). 

The confirmation log will be maintained in its entirety by Sydney Office and 
will be held in a directory accessible by Houston. This will allow 
independent audit review to occur as required. 

In order to implement this change we have prepared a new authorised 
signatories list which we are planning to distribute at the end of this week. 
In the meantime could you please advise of what action needs to be taken in 
Houston to ensure all the relevant areas are advised. Clearly a  key 
individual will be Sue Frusco. When I met with Sue in Houston we discussed 
briefly the fact that you and I had agreed that invoicing and confirmations 
would move to Sydney but at that stage there was no timing raised. Sue seemed 
happy to stay with the current arrangements until such time as we implemented 
a change. Do you want me to advise Sue or will someone from Houston speak to 
her?

Thanks

Heidi