Jeff,

Per your request from our meeting last week, the following is a summary of 
the required distribution of violation memos per the Risk Management Policy 
for NA Natural Gas:

        Plus:   Plus:
     Ted Murphy  Jeff Skilling  Ken Lay
     John Lavorato Rick Buy

     
Position    300 - 315 Bcf  315 - 330 Bcf  > 330 Bcf

12 Month Rolling Position  350 - 367.5  367.5 - 385  > 385

Value at Risk    $40 - 42 MM  $42 - 44 MM  > $44 MM


In addition to the above policy requirements, Mark Frevert and Joe Sutton 
have asked to be copied on all violation memos and loss notification memos.


Loss notification memos are also required as follows:
         Plus:
     Skilling   Lay
     Buy
     Murphy
     Lavorato

Daily Loss    50% - 75% of VAR Limit  > 75% of VAR Limit  (VAR Limit = $40 MM)

5-Day Cumulative Loss   75% - 100% of VAR Limit > VAR Limit


Please call me if you have any questions.

Mike
x-35242