Steve: Per your instructions, Chris and I met and discussed your comments 
last week regarding the Fontheim proposal to provide representation to Enron 
at the rate of $10,000 per month plus expenses (these should be quite 
minimal) from date of execution through the balance of the year.

Claude Fontheim is well known in Washington and did serve in a trade capacity 
early in the Clinton Administration. Chris and I have know two of his 
operatives Sally Painter and Ken Levinson for several years. Sally was the 
deputy director of the DOC business liason office and later with Tenneco and 
Ken was legislative director to Senator Rockefeller. We believe they have a 
good reputation and provide professional representation of the highest 
quality.

While their strength as Chris and I see it is there relationships in the 
Clinton-Gore White House, they are particularly close to the New Democrats 
(trade and commerce supporters in Congress) and have good ties into the 
environmental community. They have made various suggestions to us in the past 
and offered advice both of which have been useful to Enron. Therefore, while 
we have been discussing their value in our desire to have good ties with the 
Gore organization which they have, Chris and I also see value they can bring 
to other issues of importance to Enron including the electricity 
restructuring legislation.

We recommend them and await your decision.

Joe