Sorry.  I forgot to include you the first time.  Also, please let me know if 
you have any questions regarding the tax language contained in the margin 
agreement that we discussed last week.

  Best regards.
---------------------- Forwarded by Jeff Blumenthal/HOU/ECT on 07/10/2000 
07:16 PM ---------------------------


Jeff Blumenthal
07/10/2000 03:31 PM
To: Jaime Williams/NA/Enron@ENRON, Agustin Perez/NA/Enron@ENRON, Mark 
Taylor/HOU/ECT@ECT, Stephen H Douglas/HOU/ECT@ECT, David 
Forster/Corp/Enron@Enron, Leonardo Pacheco/Corp/Enron@Enron, Carol St 
Clair/HOU/ECT@ECT
cc:  
Subject: EOL -- Mexican tax consequences  

This e-mail sets forth the Mexican tax consequences arising from Enron North 
America Corp. (or any other United States entity that is wholly-owned by 
Enron Corp. and does not have nexus in Mexico) ("ENA") entering into any of 
the sixteen financial derivative transactions described in the "Hedging 
Indexes definitions" tab contained in the attachment below ("Transactions") 
with Mexican counterparties through EnronOnline ("EOL").  (The Transactions 
are those that Jaime Williams has indicated are most likely to be entered 
into with Mexican counterparties.  Although such counterparties may enter 
into any of the Transactions, they may also transact through EOL with respect 
to any other product offered.  I will follow up as soon as possible regarding 
the Mexican tax consequences applicable to those products not addressed in 
this e-mail.)

Based on advice received from Chevez, Ruiz, Zamarripa y Cia., S.C. (our 
Mexican tax counsel based in Mexico City), payments made by a Mexican 
counterparty to ENA pursuant to any of the Transactions will not be subject 
to Mexican income, withholding or value-added tax.  Consequently, the 
Transactions (described in the attachment below) are approved by the ENA Tax 
Department for trading through EnronOnline with Mexican counterparties.

Jaime and Agustin:  Please keep in mind that our previous discussions 
regarding ENA's activities  in Mexico (i.e., that its activities in Mexico 
should continue to be limited such that it is not subject to Mexican tax) 
also apply to ENA's EOL transactions with Mexican counterparties.  Thus, 
Enron employees' activities in Mexico on behalf of ENA (or any other 
non-Mexican Enron entity), whether through EOL transactions or otherwise, 
should be limited to general marketing of Enron products; no negotiations 
regarding any product should take place in Mexico on behalf of ENA, and no 
contract should be executed in Mexico on behalf of ENA.

Please contact me at 713.853.5777 with any questions.

Best regards,

Jeff




Jaime Williams@ENRON
06/13/2000 08:18 PM
To: Jeff Blumenthal/HOU/ECT@ECT
cc: Mario Parra Cardoso/Corp/Enron@Enron, Susan Helton/HOU/ECT@ECT, Alberto 
Carreno/NA/Enron@ENRON, Rod Nelson/HOU/ECT@ECT, Carol St Clair/HOU/ECT@ECT, 
Sara Shackleton/HOU/ECT@ECT 
Subject: EOL list

Jeff, I am sending you the specific information of the indexes and products 
that we believe our customers would be trading on EOL.....Please take a look 
at the file attached, and the page with Index Definitions, for the 
information you are looking for. The trades will be performed based on 
indexes taht already exist in OEL, so no new Mexican Indices will be 
included.   Please note however, that the mexican gas is priced in Mexico on 
the basis of the Tetco/Valero basket. So, most probably, that same basket 
will be included in the system to accomodate to our customer's needs. 
Please note that Carol St Clair will be helping us on the legal aspects of 
including Mexico into the EOL system.
Thanks and regards. 


---------------------- Forwarded by Jaime Williams/NA/Enron on 06/13/2000 
05:37 PM ---------------------------


Alejandro Montemayor
06/13/2000 03:32 PM
To: Jaime Williams/NA/Enron@ENRON
cc:  

Subject: EOL list

Jaime
Aqui te mando el archivo de la lista de clientes EOL, en el mismo archivo ya 
esta la descripci?n de cada uno de los productos. Son tres los productos que 
no estan en EOL: el promedio Tetco y PG&E; el poliestireno y el PET. 

Por otro lado para el polietileno esta la descripci?n para el LLDPE.

Si se requiere alg?n cambio solo avisame.
Saludos


Alex