Enron Transportation Services (ETS) is looking to expand the use of 
structured products both from a physical and financial perspective. To 
support these initiatives ETS needs a trading/risk management system.   The 
attached Statement of Work overviews our current and proposed business 
environments.  We have looked at the possibility of utilizing an internal 
Enron trading/risk management system, but to date have not been able to find 
a feasible alternative.  Portability, security, and functionality have been 
the major hurdles.  After further discussions it was suggested a 
communication be sent to each of you to see if you could shed further light 
on this subject, with the potential of using a preexisting Enron system.

If we are unable to find an internal system we will look to purchase the 
Caminus package.  As a trading/risk management system is seen as a critical 
step in meeting future revenue targets we will be making a final decision on 
a trading/risk management system for ETS in the next two weeks.

If you have any comments of suggestions please forward them to Lee Ferrell 
(x35197).

Thank you.