Re: Enron Form 10-K

Thanks Bob. I'd suggest that you handle the points in the first and second
paragraphs of your email with Gary Peng, including updating the verbiage as
you deem appropriate to address the North Dakota, weather, and mileage
issues. Please send to Mike Moran and myself the changes you propose
(including the numbers). We have already modified the language you reference
in your third paragraph (per Michele Winckowski), so that's taken care of.
Mike, you or I should let Rex know that a couple of these additional tweaks
are coming through this other channel. One of us can then send them directly
to Rex if that would be helpful. DF

From: Bob Chandler 03/08/2000 02:48 PM

To: Drew Fossum/ET&S/Enron@ENRON
cc: Tim Kissner/ET&S/Enron@ENRON, Marsha Eurek/ET&S/Enron@ENRON, Harry
Walters/ET&S/Enron@Enron

Subject: Re: Enron Form 10-K

We'll follow-up with Gary Peng (our contact in Corporate Reporting) on the
numeric data and blanks. However, for the verbiage for NNG we suggest adding
North Dakota and deleting Wyoming from the list of states served outside our
traditional market area. Our research last year indicated that we no longer
have any facilities in Wyoming and we do have facilities at Ft. Buford, N.
Dakota. This will conform to our Brown Cover footnote 1.

The note in third paragraph about a warmer than normal winter in Northern's
service territory in 1999 should probably be updated. The decline in volumes
from 1998 to 1999 was mainly due to cooler summer weather (less a/c) in the
south end of the system. We obtained this advice yesterday from Gilbert for
another report requirement. Also, the reference to approximately 17,000 mile
pipeline is probably a bit high. Our 1998 Form 2 reported just under 16,500
miles. This number ought to be consistent with whatever is used in the Item
2 Properties section on page 29 for the aggregate of all Enron pipelines. (I
think Corporate obtains a table from the engineers for this disclosure).

The fourth paragraph needs to be deleted or replaced. It appears to describe
the Peak Day 2000 project which was old news in 1999.