SK - I've printed this out for you.  mm

Transredes
The environmental and social impacts are currently being conducted.  
According to Transredes, analytical results for the potable water 
(transported by gasoline tanker trucks) were satisfactory.  Cleanup efforts 
continue.
Ventane
The TMR (Ventane transport company) driver and 3 of 5 occupants of the other 
vehicle were killed in a vehicle accident on 07/18.  The two remaining 
passengers are in critical condition.  Preliminary reports indicate that the 
civilian vehicle ran a stop sign and the Ventane truck hit it.
EcoElectrica, Puerto Rico
The EPA meeting has been re-scheduled for August 1. Marc Phillips is helping 
to make final revisions to the NOx modeling that indicates no "significant 
impacts" to the environment.  The second quarter excess emissions report was 
submitted to Ernesto Blanco (Enron C ALME) and Pete Wilkens of Edison for 
their final review today. It is due to EPA on July 28.
Dabhol, India
David Ronkainen and Henry Van met with Chris Haas (Thermoretec) and Steve 
Schwarts (ENSR) to discuss findings regarding the area's geology.  In 
Thermoretec's meeting with DPC management, all parties agreed to 
Thermoretec's installation of additional wells to better assess the 
subsurface contamination and review of historical analytical data to develop 
a proposal for remediation and the prevention of future impacts.  The final 
draft audit report has been distributed to concerned parties for comment.
MGplc Metals
Alan Stringer is working to identify the locations of metal storage 
warehouses, etc. in order to conduct an EHS review.  We have been unable to 
determine if any environmental due diligence was conducted prior to the 
acquisition.
Annual Report
Graphics Department is currently working on the layout and design.  Frank 
Smith is revising the Environmental Disclosure Statement.  Jeff Keeler is 
circulating a revised Climate Change Position statement.  No word received 
from Kelly Kimberly regarding the approval status of the Chairman's Statement 
and Social Responsibility statement.
Quantitative Risk Analysis
Don Stevens and Susan Worthen met with Thermoretec to review preliminary 
screens for the Quantitative Environmental Risk software currently being 
developed.
ENEL, Nicaragua Due Diligence
The government was supposed to meet this week to determine the power 
generation privatization schedule.  Meantime, the commercial team is 
re-evaluating to determine potential value.  If project proceeds, due 
diligence could occur between August 1 and end of September.
PEP, Panama Due Diligence
Enron is looking to exercise its option to purchase the PEP power plant, 
located within the boundaries of the existing BLM facility.  An environmental 
due diligence was conducted approximately 2 weeks ago.  Donnie Willmann is 
meeting with Rene Van Horde (BLM Plant Manager) to discuss ambient air 
quality impacts and needed modifications should we purchase the PEP 
facility.  

MTBE Legislation
Draft legislation has been released by the Senate Environment Committee that 
would eliminate the fuel oxygen mandate and phase out MTBE (subject to 
maintaining similar environmental benefits) and mandate use of "renewable 
fuels" (to get the support of ethanol).  We are working to have provisions 
included for MTBE producers, most likely in the form of some kind of 
incentives for converting to production of other additives.   The only 
possible date that the legislation could be marked up in the Senate 
Environment Committee is next Wednesday, July 26 -- that is not very likely, 
so consideration of the legislation may slip to September.
Pipeline Safety
There has been a great deal of activity in the Senate and House trying to 
negotiate solutions that would allow the legislation to move forward this 
year.  In the Senate, the McCain legislation that passed out of the Senate 
Commerce Committee must be fixed to industry's satisfaction in several ways 
before Majority Leader Trent Lott will allow the bill to be taken up on the 
Senate floor.  In the House, we are working with House Transportation 
Committee Democrats and Republicans on development of bi-partisan legislation 
(which will be much less onerous than the Senate bill) that can be introduced 
and quickly moved through the House.   Action on both sides will likely take 
place in September.
Clean Air (State Implementation Plans for NOx)
Tennessee:   Originally, the state's SIP allocated sufficient allowances for 
TVA and Enron generating facilities (Brownsville, Gleason peakers).  The 
state air regulatory agency has just advised us that they have re-drafted 
their SIP and reduced the amount of allowances they will give Enron by 75%.  
We will be working actively to have our allocation restored to workable 
levels.
Illinois:  Enron has organized a meeting of other IPPs next week in Chicago 
to coordinate advocacy efforts on the Illinois SIP, in which the current 
trend is to allocate allowances to existing generation and disadvantage 
newer, cleaner generation.
Alberta Power Purchase
Jeff Keeler's group have been asked to provide detailed analysis of the 
potential effects of environmental regulations on an ENA Canada power 
purchase deal involving several older coal generation assets in Alberta.  We 
have provided regulatory information, and are assembling data on the possible 
costs of emissions control options that could affect prices in the future 
under several different regulatory scenarios.
California Reporting Error
We have been working closely to deal with an error in the data EES submitted 
on their 1999 annual report to the California Energy Commission and the 
Center for Resource Solutions (the agency that administers the Green-E 
program).  The error was related to reporting of a "green" product EES 
offered to their large commercial/light industrial customers, offering 100% 
renewable energy for the first 5,000 kwhs per month at no additional 
charge.   The error could put us in violation of requirements involving EES' 
Annual Report to the CEC, Fuel Content Label and Green-E certification.   
Information about the error is NOT known outside Enron, but we have advised 
Peggy Mahoney of EES Public Relations.   Stacey Bolton is coordinating on 
this issue with EES legal and the California Government Affairs office.