Re: EOTT

CONFIDENTIAL AND PRIVILEGED ATTORNEY/CLIENT COMMUNICATION & ATTORNEY'S WORK
PRODUCT

Thanks for sending this message. Checked with Baird and his initial view is
that we should say something in the form of an additional release if Monday
comes and we can't complete our Q. He will discuss with Rex and give me
final input as soon as possible. I know this isn't a desirable result, but
Bob thinks we'd be worse off if we said nothing---and then waited for people
to call us. We wouldn't need to say much, just something to the effect that
we are continuing to work through the open integration issues, etc. The
specific wording would have to be worked out internally. I believe Susan and
Dana also believe that we should say something if we can't complete the Q on
Monday. I'm in Ireland with my son, but I will follow up on this with IR and
others and advise. Thanks. SWD

Stanley Horton@ENRON
Sent by: Cindy Stark@ENRON
05/17/00 04:10 PM

To: Dana Gibbs/Houston/Eott@Eott, Steve Myers/Houston/Eott@Eott, Mary Ellen
Coombe/Houston/Eott@Eott, Lori Maddox/Houston/Eott@Eott, Steve
Duffy/Houston/Eott@Eott, Susan Ralph/Houston/Eott@Eott, David
Hultsman/Houston/Eott@Eott, Cutty Cunningham/Houston/Eott@Eott
cc: Michael Burke/Houston/Eott@Eott
Subject: EOTT

The past several weeks have been especially difficult for everyone. I do
appreciate, however, the tremendous effort everyone has made to identify and
fix the problems that keep surfacing.

At times like these, it is human nature to place the blame. Such an exercise
is pointless. In my opinion, there were a lot of things that we would ALL do
differently if we had the chance to do them over again.

The important issues now are:

Let's get it right;
let's learn from our mistakes;
let's recognize that we have to work as a team to accomplish 1. and 2. above;
and,
let's appreciate how our job performance impacts the performance of the team.

Also, let's not forget that the commercial trends are favorable. We appear
poised to turn the corner. Stabilizing our systems, getting good regional
profit and loss data, which will improve our commercial decision-making,
coupled with aggressive cost reductions, will get us to the promised-land.

Thanks again,
Stan