Status of Audits & Cash Recoveries

Following is a status of RAC initiated audits in 2001 and year-to-date cash recoveries related to the Merchant Investment Portfolio:

Oil & Gas Joint Venture Audits Completed:

Program Operator Gross Claims Net Claims

Vastar BP Amoco $177,432 $ 88,716
Hughes-Rawls EPL $285,176 $129,954
E. Sour Lake Adobe $285,126 $256,613
Total $747,734 $475,283

Oil & Gas Joint Venture Audits Scheduled:

Program Operator Date

Cypress Meridian Resources 10/01
Juniper Bois D'Arc Resources 10/01
Vastar Key Production Co. 12/01

Coal Venture Audits Completed:

Program Operator Gross Claims Net Claims

Jupiter Cline $ 66,250 $ 66,250
Jupiter Cline $126,000 $126,000
Total $192,250 $192,250

DPR Cline The audit determined that, contrary to the agreement; excess funds were transferred to an investment account in Chris Cline's name rather than DPR. Potentially $5.5 million was at risk to Enron. The situation has been corrected.

Cash recovered in 2001 from Audits as of 9/30/01:

Oil & Gas - 2000 $315,579
Oil & Gas - 2001 $ 43,913
Coal $ 66,250
Total $425,742

Don Rollins
Enron Corporation
Risk Assessment & Control
713-853-9176