EOL

Steve,

Two weeks ago I alerted Mark Tayor to some rumours eminating from the Hill
regarding accusations being made against Enron Online. One of my contacts
who works for Barton's subcomittee warned me that El Paso has been raising
the prospect that Enron Online and other trading platforms (as well as
financial markets) are also responsible for the gas pricing issues at the
California border. A lawyer for the House Government Reform Committee has
also asked questions about Enron Online.

The person from Barton's Committee was left with the impression that El Paso
is trying to pass blame, but nonetheless, he wanted us to come in to talk to
him further about Enron Online.

Given the highly politicized environment and the lack of understanding among
Hill staffers, it is imperative that we stay ahead of this issue. I also
suggested to Mark that he try to find certain presentations made at the
Management Conference in 1999 that could put EOL in an unfavourable light.

Call me if you have any questions.