Brazos VPP's

Joan and Eric: Based on our (Eric Moon and I) discussion with Fred Lagrasta,
the financial hedge related to the Brazos VPP's should be handled through
Fred's group. We need to make sure that the volume that is given to Fred (or
Vikas or Ross) is only 97% of the VPP firm volumes. Please let myself or
Eric Moon know just as soon as you go to Fred's group for a quote so that we
may be prepared for the physical side of the deal.

Fred, Vikas and Ross: If you go to John Arnold and the basis trader for the
quote, we need to let them know that this relates to the Brazos VPP's and
that his quote is going to be known by Bank of America. If executed, Bank of
America will know that Enron is long and the exact volume and term. They
will be taking 3% of the deal at our quote (for accounting reasons, 3% of the
hedge on these transactions has to be executed with a counterparty other than
Enron, that counterparty is Bank of America). Vikas and Ross, would you guys
also call when these go through just a check.

Please call with any questions or concerns. Thanks

John Griffith