hotlist update for bhlp and upstream products louise , looking forward to seeing you next week . i am sure that we will have much to talk about and i will compensate by talking very fast . upstream products i am meeting today with scott josey regarding pluto / megs . john lavorato asked me revisit with him regarding this residual position from production offshore and did not want me to assume that although ecr is responsible for restructuring mariner , that josey would also take on the p & l responsibility associated with this project . depending on the outcome of the meeting will determine whether or not pluto / megs ends up in the new principal investments headed by kevin garland or ecr . personally , the pluto / megs transaction should be valued and restructured with all of mariner and should be redeployed to ecr . principal investments does not have the expertise or connections to evaluate this transaction . most of the individuals have been redeployed in production offshore with the exception of lisa druzbik . tom byargeon has decided to work with randy maffett over at egm . i am sure that you are disappointed by his decision and i tried my best to keep him within ena . tom wants to do asset based finance and was not interested in leading the producer ecommerce group . i spoke with dave duran and impressed upon him how we both wanted to retain tom within ena and that his organizations could be a good fit with his background . tom met with duran once and duran had one follow - up phone call with him . i briefly saw dave in the lobby after their meeting and i impressed upon dave that i wanted tom to choose an opportunity that best fit his background and interests and hoped that he would stay within ena . ( to no avail . ) kevin miller is going to lead producer ecommerce with ken loch . i am very excited by this staffing and feel that within the week of their focus , they have accomplished much . we are going to cold call producers with market caps of less than $ 1 billion . i have been very disappointed by the lack of flow from our producer originators and am not going to wait any longer . kevin is also addressing the need to have a sales agreement with hms and as well as a need to offer crude outsourcing to the producer segment . i am very happy that i moved john down to 32 to be closer to the logistics organization . it has improved the efficiencies and the p & l associated with his wellhead portfolio . however , i would like his group to be more concentrated together and not spread out amongst natural gas structuring . i would like for the wellhead desk to have the seats that are currently being used by it to support the fundamentals group . i think that the success of the wellhead desk is more important than having it to support the fundamentals portal . in addition , ed mcmichael has taken over the " management role " of making the wellhead deals currently flowing to the regional physical desks and incorporating them into the wellhead desk . although i appreciate his interest , the desks need to properly rebook these transactions ( since they are often in the system incorrectly ) and john should not have to inherit these deals at mid . in addition , john and his employees are working very hard to move forward with the " rollover " of these deals , but the desks need to move forward with the rebooking of these transactions in the system . if they are not interested , ed mcmichael should not blame john . i will be attending the next meeting scheduled by ed to move forward on this effort . in addition , i have received no comments or inquiries regarding the hotlist update from upstream products that i gave to all regional heads of origination . when we begin to cold call on the producer segment for the producer one effort , we will disburse a list to the producer originators . bridgeline i have been doing much thinking about randy ' s motivation not to sign the proposed bhlp compensation plan resolved by the board . as a texaco employee under contract , randy ' s contract has a change of control provision which can be triggered during any time , two years after chevron successfully purchases texaco . triggering this " change of control " would be the result of : ? not being offered the same pay in the past , ? ftc telling chevron to liquidate bhlp ( highly unlikely ) ? or , job responsibilities change . hence , if we try to sell our interest in bhlp , randy could argue that his " job responsibilities have changed " since bhlp would be owned by a different parent firm . if that happens , robyn davis told me that he is entitled to 2 x his highest bonus . ( that would be quite substantial considering what he got paid last year . ) we will get the highest ebitda multiple only by selling our interest with chevron / texaco . because of the " change of control " provisions with a two year time frame , chevron will not be motivated to consider outside third party bids . ( hugh connett , vp , is under contract as well . ) as such , brian and i are going to meet next week with robyn and jack to encourage all seconded employees from enron and texaco become bhlp workers . besides nullifying any change of control provision existing for texaco contracted employees , this action would alleviate many of the h . r . issues that occurred when we sold hpl to aep . more importantly , the employees of bhlp would be aligned with bridgeline - - not their parent companies . ( we will not get a higher ebitda for a trading / marketing organization if all existing employees want to go back to their parent firms . ) i am sure that we are going to get much resistance from the texaco board members . last but not least , i heard that lavorato is considering moving the responsibility of hms and bhlp to principal investments under garland . i am disappointed by this action on many levels . hms is part of the value chain for producer one ( metering and monitoring ) and impacts our producer ecommerce business . in addition , brian and i have the history and understanding of bhlp to extract the most value for enron . i do not relish my role as a board member for bhlp , but i wonder why lavorato has not considered my input when making this decision . the attached worksheet has updated p & l ( accrual , other and origination ) from january - may . ( may accrual and cost centers were closed yesterday . ) regards , mrha