Marla -

I appreciate the patience on the Password issue.   I realize it has been a 
while since we first spoke about this point. 

I have reviewed the concern about hackers and Enron use of Passwords and the 
best we can do is insert language into the Password App. similar to that 
appearing in the attached document (which is the same type of language used 
in the ETA's).  It is intended only to cover the situation where Clickpaper 
personnel use the password or otherwise access the website, in an 
unauthorized manner, on behalf of a counterparty.  The language does not 
address the hacker situation as we place the burden in that situation upon 
the counterparty.

Finally, since the Password App. is a legal, electronic agreement, any 
amendments or modifications for a counterparty must come through my office or 
through Tana Jones ((x. 33399).  Accordingly, those counterparties who have 
raised the issue should call either one of us if further action is 
necessary.  We do not actually revise the form agreements, but do provide 
side letters indicating modifications to the form agreement.

Once again, please accept my apologizes for the delay.  Let me know if you 
should need anything further.



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