Ken, at your request, my staff and I met with Robert Hatchett and his team.  
They offered Enron an opportunity to invest in a patented method of 
generating electricity by converting methane to hydrogen and burning hydrogen 
in a high efficiency turbine.  This patent represents an idea, without any 
exhaustive quantitative analysis or research and without any prototype 
demonstrated in the field or a lab.

We politely told Mr. Hatchett that we would review his proposal and get back 
to him.

Subsequently, we conveyed to Mr. Hatchett that a) methane consumption rate 
for an integrated facility based on the subject patent is higher than the 
conventional plant efficiency b) the result in fuel cost is higher c) the 
overall Co2 emissions are probably higher d) there is no economical or 
technical justification to support an investment of Enron funds.  

We informed Bob Hatchett that we would recommend to Enron that Enron not 
invest in the development of this effort.  While we invited Mr. Hatchett to 
respond back to us regarding our analysis, I see no further action required 
by us at this time.

Please let me know if you want us to draft anything from you to Mr. Hatchett 
regarding this subject.

LI39200