Steve:

Working on transition of phone operators into our group.  Fast tracking their 
physical relocation onto EB level 4.
Working with ECM and RARC on Enron Field Parking Garage project.  Have been 
advised that Joe Sutton or Jeff Skilling will have to approve DASH.  May 
require a meeting with one or other to explain.  I'm scheduled to meet next 
Wed. with Billie Birge of Sports Authority and Bob McClaren of Astros to 
discuss Garage deal and get Sports Authority support.  We have kicked off the 
design team to finish construction documents, having shut down work for last 
6 months, in order to meet our proposed May 1st construction start.
Finalising lease amendment with Trizec Hahn to add another 30,000 sq. ft. of 
space in Three Allen Center (short term 2 year deal).  The proposed space has 
already been sold internally.  Gene Humphrey's group and George Wasoff's 
purchasing team will be main occupants.
Finalising sublease with Azurix to obligate them to 3 floors of Three Allen 
Center throughout balance of our six year term.  They have asked for rights 
to keep the Allen Center Garage "reserved" parking spaces for Rebecca Mark, 
Bazelides, and Amanda Martin.  Our response is that they can keep reserved 
stalls until such time as Azurix's Board of Directors is no longer controlled 
by Enron.  At that time we may require they give up these reserved stalls and 
if so, be given reserved spaces in basement of Three Allen Center building 
(perceived as slightly less desirable).  Reason being that the Allen Center 
Garage "reserved" parking spaces came to Enron as a result of the original 
Enron Building lease in '85.  The three floors of office space they occupy in 
Three Allen Center is not significant enough to command reserved Allen Center 
Garage stalls.  However we will review next year once Enron Center's new 
garage is complete and we find that demand for reserved Allen Center Garage 
spaces is not strong.  If this is case, they can have spaces through 5 year 
balance of their sublease - regardless of Enron's ownership position with 
Azurix . 
Azurix's use of Enron's aircraft is still an open issue (time share agreement 
has expired last month and Azurix is currently not using our planes).  Azurix 
definitely does not want to take a partial ownership position in any planes 
but is asking to continue the "time sharing" relationship in which we can 
only recover 30-40% of our gross cost, depending on plane used.   They are 
proposing to cap usage around 100 hours per year, i.e. $500K gross cost which 
equals a discounted cash out cost to them of $150-200K.  We've asked them to 
put it in writing and we will review with Enron management.  
Mike Hicks and I are meeting with Don Hawkins next week (reports to Kurt 
Huneke) to better understand Asset Management's expectations of Corporate 
Security.  E-mailed Control Risk our list of preferred Security Contractors 
and asked for their input.
Representatives with Hines and design team are in Italy this week negotiating 
granite purchase for Enron Center.  Henry Terech is representing Enron.  
We've completed testing of LCD monitors in elevator cabs, using wireless 
transmitter.  All went well and we will finalise hard implementation costs 
next week.  Understand pilot testing of "BackWeb" software on our LAN is 
underway.  Initial report from Phillipe's IT team is that they are very 
impressed with software's capabilities and no problems encountered that 
impair LAN systems.

- Bill