Trading System.

Enron Transportation Services (ETS) is looking to expand the use of
structured products both from a physical and financial perspective. To
support these initiatives ETS needs a trading/risk management system. The
attached Statement of Work overviews our current and proposed business
environments. We have looked at the possibility of utilizing an internal
Enron trading/risk management system, but to date have not been able to find
a feasible alternative. Portability, security, and functionality have been
the major hurdles. After further discussions it was suggested a
communication be sent to each of you to see if you could shed further light
on this subject, with the potential of using a preexisting Enron system.

If we are unable to find an internal system we will look to purchase the
Caminus package. As a trading/risk management system is seen as a critical
step in meeting future revenue targets we will be making a final decision on
a trading/risk management system for ETS in the next two weeks.

If you have any comments of suggestions please forward them to Lee Ferrell
(x35197).

Thank you.