Dave:

Based on our discussions this morning:

1.  Internal Costs -- a capacity charge will be determined for each wholesale 
business unit based on a time allocation matrix that each lawyer and 
paralegal prepares.  The time allocation matrix will be revised  during the 
year if material changes in the work occur.

2.  Outside Costs -- require internal sign-off by GC and COO to spend more 
than $10,000 on a potential transaction AND a written transaction budget for 
proposed outside legal expenses more than $10,000.  Wherever possible, a firm 
cap on legal fees should be negotiated.  A memorandum will be sent from the 
GC and [Chairman of the Wholesale Group?] laying out the procedure to all 
employees.  

3.  Selection of Outside Lawyers -- expressly add billing rates and 
efficiency as key considerations, in addition to quality, in the selection of 
outside counsel.  [Dave, we need to complete our discussion on this point.]  
Our new policy needs to be reviewed with outside counsel.

4.  Reopener!  -- need to review where business changes significantly.



	David W Delainey
	10/19/2000 12:33 PM
		 
		 To: Wes Colwell/HOU/ECT@ECT, Sally Beck/HOU/ECT@ECT, Mark E 
Haedicke/HOU/ECT@ECT, David Oxley/HOU/ECT@ECT, Stephen H Douglas/HOU/ECT@ECT, 
Vince J Kaminski/HOU/ECT@ECT, Scott Tholan/Corp/Enron@Enron, Brian 
Redmond/HOU/ECT@ECT, Eric Thode/Corp/Enron@ENRON
		 cc: John J Lavorato/Corp/Enron@Enron, Mark Frevert/NA/Enron@Enron
		 Subject: ENA Group Expenses

Guys, notes from the morning meeting.  Please review and comment.

Specific action items:
 a) i)further calculation of ENA/Non- ENA capacity charges, ii) estimation of 
outside legal and iii) formulation of charge out/feedback process to the 
business units;
 b) need budget/review for competitive analysis, technical and restructuring.




Regards
Delainey