Project Doorstep - Financial Trading

Mark, I heard earlier today that the resolution of this matter has been to
move confirmation/documentation to Calgary, but leave contract preparation
and negotiation in Houston.

I must admit disappoint with this bifurcated result, including for the
following reasons:

1. It has left, rightly or (I trust) wrongly, the impression that there is
concern as to the ability of the Canadian lawyers to documment and negotiate
the ISDAs, etc. If this is the case, I do not share the concern. The legal
group in Canada is strong, deep, conscientious, and regularly excels at
greater and more complex challenges which expose Enron Canada to greater
risks in physical trading, origination, finance and structured transactions.

2. For these reasons, the Canadian lawyers have the trust and confidence of
the Canadian traders and originators, and their advice is sought and followed
on all matters, including, frankly, financial trading.

3. This result ignores the practical realities of time, space, efficiency,
legal jurisdictions, marketplace knowledge and internal and external
relationships.

4. I feel that the we ought to have the opportunity to be exposed to, and be
challenged by, all aspects of our business.

In any event, please let me know who will be responsible for legal oversight
of confirmation/documentation of financial transactions. For physical
trading, we regularly advise on confirmation/documentation issues and, most
notably, all structured trades and trades with a term of greater than one
year are prepared and reviewed by Enron Canada legal.

Regards, Peter.