---------------------- Forwarded by Tana Jones/HOU/ECT on 10/08/99 04:54 PM 
---------------------------
   
	Enron North America Corp.
	
	From:  Tana Jones                           10/04/99 10:55 AM
	

To: David Forster/LON/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT
cc: Mark E Taylor/HOU/ECT@ECT 
Subject: Revised Online Collateral Arrangement Language

At Mark's request, I am transmitting proposed changes to the collateral 
arrangement language in the Online GTC's.  Please let me know if it meets 
with your approval.

8.  Collateral Arrangements.  Counterparty shall (at Enron,s request) from 
time to time and at Enron,s option either:  (i) within one Business Day of 
such request by Enron, provide to Enron a letter of credit in respect of 
Counterparty's obligations under any Transaction, in such form and for such 
amount and from such issuer, as is acceptable to Enron in its absolute 
discretion; or (ii) within such period as is specified by Enron, provide for 
the benefit of Enron a guaranty from a party, in such form and for such 
amount as is acceptable to Enron in its absolute discretion.  Failure so to 
provide such letter of credit or guaranty or any default under such letter of 
credit or guaranty shall constitute a default hereunder giving rise to the 
immediate right of termination by Enron under this Transaction.