meeting with Bob Baird

Clint: after the meeting, Jim advised me that the ENE board resolution will
be drafted for the Oct. meeting. In the interim, he is convinced that only
Enron Corp. should be a swap party to these equity swaps, forwards, etc. I
am going to speak with Rod Nelson (credit) and make some changes to our
approach. This should also make life easier negotiating with Lehman and Bear
(from a credit perspecttive) but we'll reach an obvious stalemate when they
ask for an Enron Corp. resolution (forthcoming after the relevant board
meeting. Sara