Section 201 Update

Rick: I wanted to give you an update on what's going on with 201 on steel
imports:

Late Friday evening, Zoellick sent a letter on behalf of the Bush
Administration to the International Trade Commission formally initiating a
Section 201 investigation for the steel industry. Most, if not all, products
that Enron imports were included in the scope of the investigation.

I left messages for Jeff, Tim and Greg Hermans (trading) over the weekend
that this is now official (they had previously made an announcement that it
would happen, but we didn't know details because the filing had not been
made).

I am working with Jeff M. and Public Affairs on our statement on 201. It has
been through several iterations over the past week. Do you want to review
before it's finalized? We do not plan to issue any statements, but we plan
to talk from these points when asked about our position (by reporters or govt
officials). Jeff wants our approach to be "moderate" given where we are
with the domestic producers.

We are putting together a timeline for the 201 investigation, spelling out
important milestones in the process. This will help our commercial team to
understand what is coming down the pike (and when). It looks like the
investigation will take approx 9-12 months to complete from start to finish.

Let me know if you have any questions.

Lisa