Subject: "Enron Isda".

Body: The following points. All final revisions accepted other than as noted below. Please provide us by separate cover the generic risk disclosure as we do not intend to use it as an exhibit. Rounding: I added liters at 5 decimal places (to coordinate with gallons). Cross Default Threshold is at 150,000,000 for all Enron parties. Part 7 revisions not completely accepted. Please review and call, I will explain. Note the ETA currently is between ENA on its behalf and on behalf of all affiliates. It does not make sense to assign it. We are verifying our consent to your change in the Interest Rate definition. Please review collateral threshold to be sure it is as our credit departments agreed. I believe it is. Gaffney will attach form of guaranty in the execution process. As and when finally approved, our paralegal, Stephanie Panus, will commence final version paperwork and send to Gaffney for our execution and guaranty supplement, and he will forward to you.

Subject: "Agreement--Privileged and Confidential".

Body: Pat, I am going to forward you a draft of an amendment to the employment agreement for Greg Whalley. I would appreciate your thoughts on the language, particularly the language in amended section 2.1b regarding the calculation of value for options/restricted stock. For some reason, I cannot attach it to this email, so I will have my assistant send it under separate email cover. Thanks a lot.

Subject: "DEC physical".

Body: We will hold off transferring any physical positions desk to desk until the end of bidweek. After NX1, we will transfer positions at a daily EOL Index mid price. Please monitor my book and others to make certain DEC deals are not being transferred prior to NX1 at an IF monthly or GD daily mid price. Thanks,

Subject: "New product update".

Body:
John, The new products have been built and are in the process of being mapped to Sitara and Tagg. I'm working with Melba Lozano (EOL contact) and she tells me they should be ready tomorrow. Mark Taylor and I haven't spoken yet about simplifying the language in the product long description, so I'll try to get with him tomorrow. For now, we're staying with the existing language which isn't really that bad. Any of these products which are intra-month will stay in the swap filter as US GAS DAILY products, but longer than intra-month will be in the basis filter as US GAS BASIS products with the format: US GAS BASIS GD/D SoCal - HHub The only product that will be different is the Nymex to daily swap which will be: US GAS BASIS NXL1 - GD/D HHub Any questions or comments, Fletch x3-6219