Cindy,

This is our preliminary review of the documentation sent by Mr. Patteson.

One more person will take a look at it.

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 10/25/2000 
03:13 PM ---------------------------


Stinson Gibner
10/25/2000 01:16 PM
To: Vince J Kaminski/HOU/ECT@ECT
cc: Zimin Lu/HOU/ECT@ECT, Kevin Kindall/Corp/Enron@ENRON 
Subject: Matthew Patteson, Inventor

Vince,

After reviewing the documents furnished by Mr. Patteson,  I do not feel that 
Enron should consider engaging in any testing, development, or licensing of 
his proposed generator for the following reasons:

1.  Enron is not currently in the business of developing or manufacturing 
electrical generation equipment and does not plan, as far as I know, to enter 
this business.   The one exception is our ownership in entities developing 
wind and solar, renewable energy.

2.  Enron does not have the proper facilities or expertise to test or develop 
Mr. Pattesons proposed generator.

3.  There could be substantial risk in testing this generator as it would 
involve boiling of a flammable material under pressure.

4.  I do not believe that the proposed generator will produce any significant 
quantity of electrical power.   The generator produces power by induction.  
That is, electric current is induced by a changing magnetic field.   The 
mechanism powering the changing magnetic field is the movement of magnetic 
dipoles which are suspended in a boiling medium.   As the boiling will 
produce a somewhat random movement of the liquid, the "movement" or change in 
the magnetic field will be highly random and thus not suitable for producing 
a steady or reliable electrical current.

I have asked Martin Lin to also review the documents to render an independent 
opinion of this proposal.

Respectfully,

Dr. Stinson Gibner
PhD. Physics
VP Research, Enron North America

P.S.   Kevin and Zimin:  If you have any interest in reviewing Mr. Patteson's 
proposal, please let me know.