To All -

I am working on a Net Works project called CommodityLogic - an internet based 
product which can be used to provide financial and logistical solutions for 
commodity transactions.  The basic use of the product is to assist mid and 
back office personnel with the completion of transaction details such as 
confirmations, nominations and invoice reconciliations.

At the current time, the project is moving forward with four or five modules, 
each focused on a different aspect of mid and/or back office operations.  The 
module of primary concern (from a "legal buy-in" standpoint) is a module 
entitled ConfirmLogic.   

The basic idea behind this module is to enable counterparties to a commodity 
transaction to complete the confirmation process electronically through an 
electronic matching system - matching information obtained from both parties 
to the transaction.  If the information matches, the CommodityLogic concept 
is that no further action will be required by either party to confirm the 
transaction.  If information is "published" to CommodityLogic by only one 
party to a transaction (such that the automatic matching function is not 
activated), the other party my manually within the electronic module match or 
confirm the transaction information by clicking on the appropriate button 
within the module, thereby confirming the transaction information and 
alleviating the need for any further confirmation action between the parties.

This system will present the opportunity to move away from written 
confirmations and enable both parties to a transaction to accomplish the same 
manner of confirmation electronically.  Whether or not this will be an 
acceptable legal method of confirming transactions within the Enron 
environment is the key question I have been asked to address with each of you 
relative to your specific trading areas.  Accordingly, I am going to be 
setting up a meeting later this week to discuss the project in a bit more 
detail and to canvass the general opinions/questions/concerns each of you may 
have.  I intend to have CommodityLogic personnel available to address 
specific questions about the product.

If any of you should have any questions, please feel free to call me.

Thanks.

Mark
Senior Counsel, ENA
Phone:     713-345-8897
Facsimile: 713-646-3940
E-Mail:      Mark.Greenberg@enron.com