FYI
----- Forwarded by Richard B Sanders/HOU/ECT on 10/29/2000 09:01 AM -----

	"WENDY EDWARDSON" <wendy.edwardson@blakes.com>
	10/27/2000 10:00 AM
		 
		 To: <Richard.B.Sanders@enron.com>
		 cc: "DALTON MCGRATH" <dalton.mcgrath@blakes.com>, "DAN FOURNIER" 
<dan.fournier@blakes.com>, "GLENN LESLIE" <glenn.leslie@blakes.com>, "MARK 
MORRISON" <mark.morrison@blakes.com>, "WEB MACDONALD" 
<web.macdonald@blakes.com>
		 Subject: 83829/44 Enron Canada re Special matter - Project Stanley


Status Report re: tape transcripts

At this time, this summary has been sent to you only.

Counsel for Powerex has indicated that he now has instructions to share with 
us the information that has been seized from their offices by the Bureau in 
exchange for our providing similar information to them.

He has also indicated to us that between the 19th and the 25th of October, 
the Bureau came to Vancouver and listened to the Powerex tapes using Powerex 
equipment in that they had been unable to listen to them with their own 
equipment.

As you are aware, the tapes seized from the Enron offices in Calgary cover 
the period of September of 1999 to the end of October.

The tapes which we have listened to, but which they have not seized, cover 
the period commencing in late May of 1999 to September, 1999.

With respect to the tapes that they have seized, initially we exerted a claim 
of privilege to all of the tapes.  The Bureau has now come back to us and has 
asked us to clarify how we would propose resolving the privilege question.  
We have volunteered to have this discussion with them, but to this point in 
time, they have not responded to us.

If, as and when the conversation occurs, our position will be that we intend 
to claim privilege with respect to conversations with lawyers only.  How this 
particular aspect of the matter would be resolved is not as yet clear.

Our view is that with respect to the conversations they have, they are not 
particularly damaging but the conversations do not particularly add to the 
flavour of the matter to our benefit.

On Wednesday of next week, we will be meeting with counsel for Powerex to see 
exactly which conversations they have delivered to the Bureau.  We will 
advise him of the conversations that have been taken by the Bureau from our 
offices and at the conclusion of this matter, we should be able to see 
exactly what it is that the Bureau has in terms of conversations between 
Powerex and Enron.

We look forward to discussing this matter with you at your convenience.

Yt
Web Macdonald