I just wanted to recap our 2000 Earnings Target, based upon our discussions 
on Wednesday.

 1999 Consolidated Net Income   $49.6 Million
 
 2000 Target Consolidated Net Income  $96.6 Million
  (Included original "stretch" of $2.9M)

 2000 Base Operating Income Target  $147.4 Million

 2000 Current Estimate Base Operating Income $154.8 Million

Through June of 2000, in our Base Operating Income we were able to cover our 
original stretch of $2.9Million, 
as well as a Sale of Assets shortfall of $2.6 Million, resulting in our 
exceeding our Base Operating Income Target 
by a net amount of $1.9 Million.

We will now put into place a plan to cover the incremental stretch of at 
least $2.9 Million for 2000.  Our revised 2000 Consolidated Net Income Target 
is now $89.4 Million.  We will be meeting in the next few days to develop and 
implement our strategy to attain this target.  I will advise you of the 
possibilities which we will be pursuing to reach our 
target.

You should also recall that we are continuing to pursue reimbursement for our 
costs related to the lowering of the Black
Marlin pipeline across the Houston Ship Channel.  The Purchase and Sale 
Agreement for Black Marlin was
negotiated such that all dollars collected for that work will come back to 
Enron as income.

In the final analysis, I am confident that we will meet, or exceed, the 
target before us.  If you have any questions, or wish to discuss any of this, 
please call me.