I'm getting really really tired.  If the company's intent is for me to just 
run a trading operation let me know. 

 -Original Message-----
From:  Belden, Tim  
Sent: Thursday, May 31, 2001 9:32 AM
To: Lavorato, John
Cc: Calger, Christopher F.
Subject: delainey discussions

highlights of my discussion with dave:
? he wants an "opportunity" to originate out of the ees positions.  for 
example, the harrah's deal generated approximately $16 million relative to 
the mid, of which $4 went to ees.  he wants a chance to back this deal with 
his sourcing group.
? he was unable to offer any definition around what the word "opportunity" 
means.  one interpretation of "opportunity" is that they get a head start, 
say three months to back a deal where neither west mm or west orig works on 
that deal for three months.  another interpretation is that west mm and west 
orig aren't allowed to talk to certain wholesale customers, for example the 
generators.  both of these are bad ideas.
? i asked him why enron would want to keep its most talented origination 
resources on the sidelines for any period of time in order to let the kid 
brother (ees) have a "fair" chance at winning a deal.  i also asked him if he 
thought his crack squad could compete with the capabilities that we have 
developed in the west.  his answer was no.
? i told dave that as the manager of the retail risk book i don't care who 
originates out of the transaction.  my thinking is that i give a copy of the 
harrah's contract to calger, foster, and delainey.  whoever gets us out first 
gets paid orig.  if people want to coordinate then that's fine.  if they want 
to compete head to head then that's fine.  speaking for portland, i would 
expect that west mm and orig would coordinate.
? dave then said that he "gave" us the risk function and insinuated that we 
owed him something in return.  i indicated that i was willing to give it back 
and return to my simple life managing the west wholesale trading desk if 
that's what he wanted.  i think he took offense to that comment.
? we hung up with no resolution.  dave called me back and proposed that we 
let anyone originate out of the position.  however, the origination dollars 
would go to ees profit center with the west mm or origination person getting 
the credit for that.  he talked about ees and the stock price and the billion 
dollar business.  my guys (i'm not speaking for chris here) don't care where 
the origination dollars go to so long as they get paid for bringing value.
? i suggested that he work it out with you and that i would be looking for 
direction from you.

i'm pretty sure that dave will characterize our conversation as though we are 
in a agreement and that we are ready to move forward.  i would say that we 
agree that we need to get the best people originating out of these deals.  i 
would rather that the money for orig stay with whoever originated it.  i can 
live with a variety of outcomes.  i'll sit tight and wait for direction from 
you.

 -----Original Message-----
From:  Lavorato, John  
Sent: Thursday, May 31, 2001 5:44 AM
To: Vickers, Frank W.; Lagrasta, Fred; Tycholiz, Barry; Luce, Laura; Duran, 
W. David; Calger, Christopher F.; Wolfe, Greg; Foster, Chris H.; Wolfe, Greg; 
Belden, Tim; Presto, Kevin M.; Mrha, Jean; Baughman, Edward D.
Cc: Kitchen, Louise
Subject: 

Delainey and I started initial discussions reguarding EES and the customers 
and products they plan to market.  These were initial discussions.   Dave is 
writing something up to send to me.  Before I agree on anything I will talk 
to all of you.  Some of the meeting that are happening may be a little 
premature.

John