Marcus Nettelton is coordinating comments on the attached. 

As we previously discussed, McDermott, Will & Emery was asked to prepare this 
draft.

Regards, Alan
----- Forwarded by Alan Aronowitz/HOU/ECT on 11/20/2000 03:47 PM -----

	klarsen@mwe.com
	11/17/2000 10:38 AM
		 
		 To: Alfred.Pennisi@enron.com, Marcus.Nettelton@enron.com, 
Alan.Aronowitz@enron.com
		 cc: ppantano@mwe.com, darezina@mwe.com
		 Subject: ETS Risk Assessment Report




******************** PRIVILEGED AND CONFIDENTIAL ********************

Dear Gentlemen:
Attached please find the draft Enron Trading Services Risk Assessment Report 
to
be filed with the CFTC.  Included in this report is a cover letter, the
Organizational Chart, and Sections 10 (Capital Requirements) and 15 (Risk
Management) of the ETS Futures Compliance Procedures Manual.  Also attached 
for
your convenience, is a blackline version of Sections 10 and 15 to reflect the
changes we have made.

Please note that we have not listed Enron Corp. as a Material Affiliated 
Person
of ETS based on our review of the preamble to CFTC Final Rule 1.14, defining a
Material Affiliated Person, and on our conversation on a non-disclosed basis
with the CFTC Auditor .  Should you have any questions or suggestions 
regarding
the report, please contact me at the telephone number listed below.  Thank 
you.

(See attached file: ETS Risk Report Cover Letter.doc)(See attached file: ETS
Organizational Chart.ppt)(See attached file: ETS Risk Report - Sections 10 &
15.doc)(See attached file: ETS Risk Report Blackline - Sections 10&15.doc)

Best regards,
Kari S. Larsen
McDermott, Will & Emery
600 13th Street, N.W.
Washington, DC 20005
Ph:    (202) 756-8374
Fax:  (202) 756-8087
Email:  klarsen@mwe.com

******************************************************************************
*******

This message is a PRIVILEGED AND CONFIDENTIAL communication.  If you are not 
the
intended recipient, please do not read, copy, or use it, and do not disclose 
it
to others.  Please notify the sender of the delivery error by replying to this
message, and then delete it from your system.  Thank you.
******************************************************************************
*******


For more information on McDERMOTT, WILL & EMERY please visit our website at:
http://www.mwe.com/

 - ETS Risk Report Cover Letter.doc
 - ETS Organizational Chart.ppt
 - ETS Risk Report - Sections 10 & 15.doc
 - ETS Risk Report Blackline - Sections 10&15.doc