Jeff,

Mark Elliot in Legal here in London is concerned that there may be tax or 
legal implications depending on how involved in the process London gets.  It 
would be helpful to Mark if you could let him know what the problems you are 
experiencing with your clearing function are and what exactly London will be 
doing, this way Mark and tax can investigate.

Monday is a bank holiday in London so Mark and myself will be out of the 
office.  

Regards,
Maria.


---------------------- Forwarded by Maria Nartey/LON/ECT on 30/04/99 17:46 
---------------------------


Mark Elliott
30/04/99 15:24
To: Maria Nartey/LON/ECT@ECT
cc: Richard Sage/LON/ECT@ECT, Barry Pearce/LON/ECT@ECT, Mark - ECT Legal 
Taylor/HOU/ECT@ECT 
Subject: Re: Documentation from OM  

Maria,

Not necessarily - it is just that the OMLX got hold of the idea (I am not 
sure wherefrom) that Enron wanted Merrills - I have previously asked Mark 
Taylor, the VP in Legal in Houston,  whether or not Merrills would meet with 
the commercial peoples' approval and I know that Mark has been trying to find 
this out, but I have not received word on this as yet.

May be you can endeavour to find this out??  As I say, I have already 
forwarded to Mark Taylor in Houston the signature versions of the Clearing 
Agreements in the name of Merrills - so if we want to change, no problem, it 
will just take a few days for us to get new docs raised from the OMLX and 
then to pass them on to Houston.

Kind regards

Mark  



Maria Nartey
04/30/99 02:22 PM
To: Mark Elliott/LON/ECT@ECT
cc: Richard Sage/LON/ECT@ECT, Barry Pearce/LON/ECT@ECT, Mark - ECT Legal 
Taylor/HOU/ECT@ECT 
Subject: Re: Documentation from OM  

Mark,

Does this mean that you would prefer it to be Merrill Lynch?  If so I can 
pass this on to Jeff Harbert and see if he and Bob Crane are OK with this. 

 I'm not sure what the clearing problems they are having in Houston are but 
it might mean that you will have more legal points to finalise.  I tried to 
contact Jeff to get some more information for you but he is out of the office 
until Monday. 

I can try him again on Tuesday but if you have any legal question or queries 
you might want to speak to him yourself, his no is 001 713 8536979.   Either 
way please keep me updated.

Regards,
Maria.



Mark Elliott
30/04/99 12:19
To: Maria Nartey/LON/ECT@ECT
cc: Richard Sage/LON/ECT@ECT, Barry Pearce/LON/ECT@ECT, Mark - ECT Legal 
Taylor/HOU/ECT@ECT 
Subject: Re: Documentation from OM  

Maria,

The Clearing docs we got in from the Exchange showed Merrill Lynch in London 
as Houston's clearer.  This is not to say this is fixed, but for some reason 
the OMLX were under the impression that it would be Merrills.  By the way, we 
can have as many clearers as we like (provided, of course, that they are 
General Clearing Members at the OMLX).

If you could let me now quite swiftly on this issue I would be very grateful 
as we finalised the legal points on Clearing docs a couple of weeks ago and I 
have already couriered the final  versions for signature to Houston. 

Kind regards

Mark   



Maria Nartey
04/30/99 09:00 AM
To: Richard Sage/LON/ECT@ECT, Mark Elliott/LON/ECT@ECT
cc:  
Subject: Re: Documentation from OM

FYI
---------------------- Forwarded by Maria Nartey/LON/ECT on 30/04/99 09:03 
---------------------------


Maria Nartey
29/04/99 19:22
To: Jeff Harbert/HOU/ECT@ECT
cc: Barry Pearce/LON/ECT@ECT 
Subject: Re: Documentation from OM  

Jeff,

We only use two London clearing houses, Bank Paribas and Carr.  The back 
office at Carr was not very good when I used to deal with them but I've been 
told that they are much better now.  Paribas was definitely the better of the 
two from a back office point of view.

Let me know if you need anything else.
Regards,
Maria.


   
	Enron Capital & Trade Resources Corp.
	
	From:  Jeff Harbert                           29/04/99 18:45
	

To: Barry Pearce/LON/ECT@ECT
cc: Maria Nartey/LON/ECT@ECT 
Subject: Re: Documentation from OM  

Hi Barry,

Regarding our upcoming Pulpex "market maker" role, we're running into a few 
problems with the clearing function.  I mentioned to Bob that it may make 
more sense to use one of the existing London office clearing houses.  Under 
an arrangement like that I would see the following:

a.  London uses an existing "clearing house" for the Pulpex margining 
activity.  A new account would be required to separate paper from your other 
business.
b.  London admin. maintains the account from a support standpoint on behalf 
of ECT Houston Pulp & Paper including 1) daily margining requirements, 2) 
cash account reconcilation, and 3) other accounting requirements.
c.  Houston office would be responsible for the electronic trading, reporting 
positions, reconcile trading activity, report Profit/(Loss), etc.

ECT Pulp & Paper would reimburse London office for expenses incurred in 
connection with support requirements.

Maria,  Would you provide me with a list of the "clearing houses" you use 
today.  I'll give this to Bob Crane to see if he has a preference or other 
comments.

Call or write if you have a chance early next week so we can figure this 
out.  I'll be out of the office tomorrow (Friday).

Thanks for your help.

Jeff
 


   
	Enron Capital & Trade Resources Corp. - Europe
	
	From:  Barry Pearce                           02/24/99 11:22 AM
	

To: Bob Crane/HOU/ECT@ECT, Jeff Harbert/HOU/ECT@ECT
cc:  
Subject: Re: Documentation from OM  

Thanks

London Team in Support of your activities

Barry Pearce - Administration & Accounting
Maria Nartey - Settlements/Margining
Mark Elliott - Legal
Brigitta Millard - Documentation