(1) Our entry into ag trading, as it will entail restrictions we are not 
accustomed to having to deal with.  In addition to black-letter restrictions, 
the general political/regulatory climate and attitude is much less permissive 
than it is with respect to the other types of trading we've done to date.  I 
think the risk should be thought of in three categories: (a) regulatory -- 
risk of an enforcement action; (b) political -- risk of alienation of 
legislators/regulators/powerful constituencies, which could affect all of our 
businesses, and (c) publicity -- particularly if we end up trading with 
farmers, and farmers suffer significant losses as a result of trading with 
us.  I personally think all of these risks are manageable, but they must be 
carefully addressed, which will require appropriate training of all traders 
involved.

(2) Trading of credit derivatives -- risk of defamation of credit liability 


Robert E. Bruce
Senior Counsel
Enron North America Corp.
T (713) 345-7780
F (713) 646-3393
robert.bruce@enron.com



	Mark Taylor@ECT
	10/25/2000 11:54 AM
		 
		 To: Robert Bruce/NA/Enron@Enron, Mary Cook/HOU/ECT@ECT, Brent 
Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sara Shackleton/HOU/ECT@ECT
		 cc: 
		 Subject: 

Mark Haedicke has asked me to submit a list of our "top ten legal risks" - 
please let me know of anything you think should be included in the list.