RE: NEPCO Severance/Retention ,
 Good luck.

I would like the message to be even stronger than that -- he is not supposed to hire any outside counsel at all, for anything -- that is supposed to be done through legal department, per Jim Derrick's strictly-enforced rules.  He knows this and continues to violate that rule.  I suggest that he must hear a strong message, with disciplinary potential if he does it again.  Otherwise, this will have to be escalated to Derrick, since it continues to happen again despite my requests that he not do it.

In fact, he never contacts me for anything, which makes me nervous.  I would suggest that you would want him to have the same processes that we have in the rest of Enron regarding terminations of employment, which is that they go through legal if they are for any reason other than ROF.  That way, we may be able to catch some of the issues before they become more significant.  Similarly, I would like to be informed of employee relations issues that could bubble up into legal concerns.  I don't have much optimism for this, but still would like to ask for it!

Michelle

 -----Original Message-----
From: 	Smith, Gary  
Sent:	Monday, October 22, 2001 7:54 AM
To:	Gilchrist, Scott
Subject:	RE: NEPCO Severance/Retention

Thanks for the response.  A face to face with Mike I sounds like a good idea.  Among other things, remind him to contact Michelle Cash when he intends to use an outside counsel for legal matters.  Also, I'd like to review his 2001 and 2002 HR Budget with you when you get your hands on it.

 -----Original Message-----
From: 	Gilchrist, Scott  
Sent:	Friday, October 19, 2001 9:28 AM
To:	Smith, Gary
Subject:	NEPCO Severance/Retention

Gary

Saw the email you forwarded......someone's lost the plot here!

I had sent an email to Mike -hinting that there should no longer be a need for retention (didnt want to go into print and actually say NEPCO was off the table given there's still one interested buyer in play, and I havent yet thought thru the impact of bringing in a partner).

Have now left two voicemails for Mike asking him to call to discuss.


Will be talking to Brian about it today, and will probably go up to Bothell for a day next week (mountains and Mohammad)! Also plan on getting together with Aaron and Lydecker early next week.

Will keep you posted
gary.smith@enron.com, scott.gilchrist@enron.com