Update on Legislative situation re Hefley amendment

Steve, this may change our strategy but we could probably still sound off on
the BGE lawsuit.
---------------------- Forwarded by Robert Frank/NA/Enron on 08/31/2000 04:15
PM ---------------------------

bmoss@gcwdc.com@gcwdc.com on 08/31/2000 02:27:49 PM
To: cynthia.sandherr@enron.com, ltarbet@enron.com, bvotaw@enron.com,
rfrank@enron.com, jcarr@enron.com
cc: anavin@enron.com, Ksaunder@enron.com

Subject: Update on Legislative situation re Hefley amendment

This should be kept confidential.

I am advised from one staff source, who is involved in the House-Senate
negotiations, of the following:

--House and Senate staff met yesterday to discuss the Hefley amendment;

--They agreed to try a certain approach;

--Phil Grone (Rep Hefley's staffer) will prepare a written 'offer' for the
Senate staff;

--That offer might be the Senate amendment plus statutory language
authorizing the Secretary to select/mandate certain state health and safety
regualtions to follow;

--The 'offer' is expeced between now and next Tuesday (9/5);

--There will be a Members meeting on this and other issues next Wednesday
(9/6);

--DOD has not yet signed off (and in fact there is no agreement until
everyone see the language -- and there is always the possibility that Grone
might try to broaden the language to include other susbjects).

--IF there is House, Senate and DOD agreement, the issue could be resolved
at the Members meeting; however, nothing is written in stone until the
Congress actually votes on the Defense Authorization Conference Report.

CONCLUSIONS I reach:

1. We should be careful of any activity that would pressure Mr. Hefley, his
staff or make this a personal issue between now and next Wednesday; let
Grone prepare his 'offer'.

2. We may want to slow-walk the Tom White/Dick Cheney call until we get a
better handle from DOD and Hill staff on developments over the next few
days.

3. We should continue broad-based yet low-key efforts between now and next
Wednseday to show support for the Senate position -- targeting key
Senators/staff and selected House Memebers/staff -- utilizing CSA, COOPs
and BENZ, at al.; keep the Enron profile low.

4. We need to talk re how to assure that we have imput to DOD's review of
the Grone 'offer'; the TomWhite/CSA meeting with Secretary Yim may be
timely.

5. If there is an acceptable agreement our strategy changes to one of
holding it.

6. I will run the traps again tomorrow and report if new information.

7. We will all talk Tuesday at 0900 EST.