ECT is willing to pay 25%,but we will not agree to pick up any of EOTT's 
share.
---------------------- Forwarded by Richard B Sanders/HOU/ECT on 06/22/99 
02:24 PM ---------------------------


Walt Zimmerman@EOTT
06/11/99 07:28 PM
To: Britt Davis/Corp/Enron@ENRON
cc: Richard B Sanders/HOU/ECT@ECT@ENRON, Steve Williams/EOG/Enron@Enron, 
Bonnie White/Corp/Enron@Enron, Robert Vote/Corp/Enron@Enron, Michael 
Moran/ET&S/Enron@Enron, Brenda McAfee/Corp/Enron@Enron, Shirley 
Davey/Corp/Enron@Enron, Steve Duffy/Houston/Eott@Eott, ctetrault@velaw.com 
Subject: Re: DOJ Royalty Inquiry  

Britt, I did receive a copy of the V&E invoice, but EOTT has not agreed to a 
25% cost allocation for this matter.  EOTT is not a party to any of the 
contracts involving the "sample leases" that are referenced in the subpoena, 
and the subpoena does not appear to be directed to the types of business that 
are conducted by EOTT.  As indicated in memos from Charles Tetrault,  the 
document requests are focused on EOG and ECT.  EOTT is not going to pay 25% 
of the legal fees associated with EOG's and ECT's response to this subpoena.

I do not have a problem with paying 25% of this first bill ($1,250.79), 
because it was worth $1,250.79 to learn that EOTT probably will not have to 
provide any documents that are responsive to this subpoena.  However, until 
someone can convince me that the DOJ is actually interested in some EOTT 
transactions, I will not advise EOTT to contribute more than 5% to this 
effort in the future.  If we cannot agree on an allocation to EOTT that is 
less than 5%, then EOTT will need to make separate arrangements with respect 
to the minimal representation that it will apparently require with respect to 
this matter.

Of course, should circumstances change such that EOTT becomes a focus of this 
investigation, then we would be willing to pay a greater share of these legal 
fees.  Currently, however, EOTT transactions do not appear to be of interest 
to the DOJ, and EOTT should not be allocated 25% of the legal fees associated 
with responses by other Enron affiliates to this subpoena.

Please call me next week so that we may discuss EOTT's participation in this 
matter.



Britt Davis@ENRON
06/09/99 10:09 AM
To: Richard B Sanders/HOU/ECT@ECT, Walt Zimmerman/Houston/Eott@Eott, Steve 
Williams/EOG/Enron@Enron, Bonnie White/Corp/Enron@Enron, Robert 
Vote/Corp/Enron@Enron
cc: Michael Moran/ET&S/Enron@Enron, Brenda McAfee/Corp/Enron@Enron, Shirley 
Davey/Corp/Enron@Enron 

Subject: DOJ Royalty Inquiry

 I have received a copy of a V&E invoice regarding the above-referenced case 
in the total amount of $5,003.17, which is split equally among Enron Corp., 
EOG, ECT, and EOTT, pursuant to the agreement of those parties.  Let me know 
which of you need a copy of that invoice.  Many thanks.

        B.K.D.