FYI Only

FYI

It is anticipated that Enron will announce later this week, a new "Employee
Stock Option Plan".

Approximately 45 days ago we analyzed the cost of EOTT's participation in
this program. The cost impact was $2.5 - $3.0 for each year over the next
five years with no provision of supervesting in the event a business group
was divested during the term of the grant. Based on these factors, a
decision was made for EOTT not to participate in the program at this time.

While EOTT employees will not directly receive communications on this
program, it is possible that the senior leadership group could receive a
question on EOTT's participation. We have elected not to send an EOTT
employee communication about nonparticipation to avoid raising the issue
where not necessary.

If you receive questions, you may refer the individual to me or answer with
the appropriate response based on the information in this e-mail.

Thank you in advance for your cooperation and support of this decision. If
you have further questions or comments, please advise.