CONFIDENTIAL AND PRIVILEGED ATTORNEY/CLIENT COMMUNICATION & ATTORNEY'S WORK 
PRODUCT

I will close the loop with Bob Baird and Rex Rogers on whether any other 
steps would need to be taken.  My only comment on your points below would be 
on the "magnitude" issue.  We told the analysts this morning that we did not 
believe that any adjustment would have a material impact on our overall 
financial position.  If we have essentially the same fourth quarter "number" 
next week, and we receive a follow- up call from one of the same analysts, 
wouldn't we want to be able to reiterate our statement?  To do otherwise 
might suggest a change in our position/perception. SWD



	Scott Vonderheide@ENRON
	05/16/2000 01:46 PM
		 
		 To: Lori Maddox/Houston/Eott@Eott, Steve Duffy/Houston/Eott@Eott, Kathryn 
Corbally/Corp/Enron@ENRON, Stanley Horton/Corp/Enron@Enron
		 cc: Paula Rieker/Corp/Enron@ENRON, Mark Koenig/Corp/Enron@ENRON
		 Subject: Draft of response after May 22

Below is a first pass at suggested responses assuming we do not file the 10-Q 
on or before May 22.  Kathryn Corbally will coordinate comments from the IR 
side.  Lori is coordinating comments with AA.  Steve - could you coordinate 
with Bob Baird/Rex Rogers.

If you need to reach Kathryn, her direct line is (713) 853-4785.  

Thanks -
Scott



Suggested comment if EOTT has not filed the 10-Q on May 22, 2000 (we will 
only provide response if asked):

? We are continuing our review of the implementation of our new marketing and 
accounting systems.
? We expect to have our analysis complete and the Form 10-Q finalized by June 
15.


If specifically asked about the issues under investigation:

? We implemented a new marketing and accounting system in November of 1999.  
As we stated in our first quarter earnings release, we are specifically 
reviewing integration issues related to the to this implementation.


If asked about the magnitude of possible adjustments:

? We need to complete our investigation before we can answer specific 
questions on what adjustments, if any, would be appropriate.  The required 
review is labor intensive.  We are working very diligently and will provide 
the information as soon as possible.