Successful Defense of the RMT Audit

Wes, several months ago I sent you a memo (which I have attached to this
E-mail for ease of reference) describing that the State of Texas had notified
the Tax Department that it intended to audit the tax returns for Risk
Management & Trading Corp. ("RMT") for the 1998 through 2000 tax years.
Greg, this is the legal entity about which I spoke to you several months ago
and of which you serve as its Senior Management. We were recently notified
by the State of Texas that it had completed its audit and review of RMT's
returns and that NO ADJUSTMENTS would be proposed. As I outlined in my
earlier memo to Wes, the RMT arrangement has increased earnings of Enron by
approximately$30 million since 1997. The Tax Department is extremely proud
of our defense of Enron's interests in this matter and I would be delighted
to speak with you about this should you desire. Best regards. SHD.