NGX

Talked to Bill McCoy at Morgan, Stanley about the Richard Shelton affidavit.
He was aware of the efforts made last week, but not directly involved, b/c he
was out of the country. Now that he's back, he said he would check into it
further, but he's doubtful that Morgan will be able to take a public position
on this. Although the commodities group is definitely in favor of it, there
might well be other constituents of the Morgan Stanley/Dean Witter family of
companies for whom such a position could be "too confining" in other
circumstances when those other companies/groups might wish to take an
opposite position. He said he would look again at trying to get clearance,
but he's not really hopeful. He asked me whether Rich Shelton would have to
actually testify, and I repeated what our counsel told us that
cross-examination is likely but does not have to occur in Calgary. He asked
about our timetable and said he will call me back either way and will try to
expedite it. I'll keep you posted.

Regards,
Janice

EB3861
Assistant General Counsel, Enron North America Corp.
713-853-1794 (Fax: 713-646-4842)