ETS Risk Assessment Report

Marcus Nettelton is coordinating comments on the attached.

As we previously discussed, McDermott, Will & Emery was asked to prepare this
draft.

Regards, Alan
----- Forwarded by Alan Aronowitz/HOU/ECT on 11/20/2000 03:47 PM -----

klarsen@mwe.com
11/17/2000 10:38 AM

To: Alfred.Pennisi@enron.com, Marcus.Nettelton@enron.com,
Alan.Aronowitz@enron.com
cc: ppantano@mwe.com, darezina@mwe.com
Subject: ETS Risk Assessment Report

******************** PRIVILEGED AND CONFIDENTIAL ********************

Dear Gentlemen:
Attached please find the draft Enron Trading Services Risk Assessment Report
to
be filed with the CFTC. Included in this report is a cover letter, the
Organizational Chart, and Sections 10 (Capital Requirements) and 15 (Risk
Management) of the ETS Futures Compliance Procedures Manual. Also attached
for
your convenience, is a blackline version of Sections 10 and 15 to reflect the
changes we have made.

Please note that we have not listed Enron Corp. as a Material Affiliated
Person
of ETS based on our review of the preamble to CFTC Final Rule 1.14, defining a
Material Affiliated Person, and on our conversation on a non-disclosed basis
with the CFTC Auditor . Should you have any questions or suggestions
regarding
the report, please contact me at the telephone number listed below. Thank
you.

(See attached file: ETS Risk Report Cover Letter.doc)(See attached file: ETS
Organizational Chart.ppt)(See attached file: ETS Risk Report - Sections 10 &
15.doc)(See attached file: ETS Risk Report Blackline - Sections 10&15.doc)

Best regards,
Kari S. Larsen
McDermott, Will & Emery
600 13th Street, N.W.
Washington, DC 20005
Ph: (202) 756-8374
Fax: (202) 756-8087
Email: klarsen@mwe.com

******************************************************************************
*******

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intended recipient, please do not read, copy, or use it, and do not disclose
it
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message, and then delete it from your system. Thank you.
******************************************************************************
*******

For more information on McDERMOTT, WILL & EMERY please visit our website at:
http://www.mwe.com/

- ETS Risk Report Cover Letter.doc
- ETS Organizational Chart.ppt
- ETS Risk Report - Sections 10 & 15.doc
- ETS Risk Report Blackline - Sections 10&15.doc