Subject: "IT Development Spend Rate Analysis".

Body: Sally, Attached is a very simplistic run rate analysis for Beth Perlman's group. I'm surprised at how close it is once one time reconciling items are included. Headcount for 2002 is pretty flat to September's. Please let me know if you would like to discuss this. Kerry

Subject: "Coca-Cola Construction".

Body: Attached is the final version of the Bammel Compression Turnkey Construction Agreement used in Project Looper. This agreement will require some modification for use in Project Coca-Cola, but is a good starting point. In the interest of efficiency I am circulating this for your review and comments. We can then discuss how this needs to be tailored for the CO2 project. Please note the following with respect to this agreement: 1. A detailed engineering scope of work will be required for the treaters. 2. Given the financing objectives for this project, this agreement should be as lump sum price as possible with liquidated damages for in-service date risk. 3. A performance criteria guarantee section will need to be added which references specific plant peformance criteria in the scope of work. FYI, I will be in Albuquerque tommorrow for a Compression Services project. After your review let's discuss.

Subject: "call to Sen Kinder".

Body: Ken talked to Sen Kinder. He made the points you had prepared. Kinder agreed to shelve the legislation for this session. He said he had been hearing from several others, including Proctor and Gamble (which has a big facility in his district) that the legislation was not going to help competition develop in the state. He expressed willingness to work with us on a better package and also expressed interest in coming to Enron's offices. He is going to be in San Antonio in August and would like to come to Houston around that time.

Subject: "EnronOnline Database".

Body:
When you have a minute, I've been inputting data all week and have fixes/upgrades we need to the database. In particular, the EOL people are about to introduce a new product any time time now, and I need that sort the shows "Approved, approved with limits, not approved" to work so I won't have to look at each of 1500 entries to determine what limits are in place. When you arrive Monday can you let me know how long it will take you to have that sort working. Then, maybe we can get together and discuss other changes we need to make. Much thanks!