Subject: "Duke".

Body: Lorraine, I've been studying the El Paso/Dynegy reservation reduction mechanism (RRM). Basically the deal was that Dynegy's minimum-pay obligation would be reduced by the amount of the fixed cost component of IT revenues generated by El Paso's transportation of IT volumes above a historical threshold. (The parties based the threshold on El Paso's monthly IT volumes for the 12 months ended 9/30/97.) The volumes in excess of the threshold were calculated and a ratio of the volumes in excess of the threshold to the total volumes was determined; the ratio would then be applied to the fixed cost component of all IT revenues and the resulting dollar value applied to Dynegy's monthly reservation charge, to the extent Dynegy had not met its minimum pay obligation for a particular month. This provision of course met with heavy opposition; however, FERC allowed it. FERC stated that while the RRM had anticompetitive effects because it created a disincentive for El Paso to discount IT, it was not unduly discriminatory. The "unduly discriminatory" conclusion was based on an analysis on the potential effect on the Cal. gas transportation market -- the

Subject: "Terra Industries".

Body: Here is your Guaranty. Have them sign two letters and attach copies of the original Gty as Exhibit A. Call me if you have any questions.

Subject: "A small task".

Body: Could you please go through the option agreement I have in my directory on O. It is under Option Agreements, and it is the only document there. It should be called Fehr land option, or something similiar. Please go search and make Optionor plural throughout, and make the grammar match. I started making the changes, but got distracted from the task. Thanks,

Subject: "Grupo Calidra, S.A. de C.V.".

Body:
Attached for your approval is the form of Enron Corp. Guaranty in favor of the referenced Counterparty, which guarantees the obligations of ENA under a financial confirmation. We will need the standard executed copy. The confirmation requires that we deliver the Guaranty within 5 days. Upon approval and execution, please call me at x33399 to pick up the documents. Thank you for your assistance in this matter.