The purpose of this memorandum is to communicate changes in how EES operates and manages remote office space outside of Houston, London, Calgary, and Toronto.  The goal is to increase the effectiveness in the handling of all components of EES leases; in particular, driving enhanced communication, centralization and documentation, and increased accountability.

In keeping with this goal, the following procedures and signing authority have been developed and are in place effective immediately.  All leases, renewals, extensions, or modifications may only be signed by Dan Leff, Chief Operating Officer.

All leases, renewals, extensions, modifications, build-outs, expansion of space, or requests for furniture and equipment require prior review and approval by the following:

I.	Real estate and legal approval: Lance McCarthy, Manager - Real Estate.

II.	Sign-off by one of the following from EES Space Management:
	a.	Evan Hughes, Sr. Director - Services Group
	b.	Deborah Arango, Director - Service Operations, or 
	c.	Dawn Fournier, Director - Space Management

Our Real Estate Group shall not commence any lease negotiations without the prior consent of one of the three identified in II. above.

Sub-lease arrangements between EES and other Enron businesses will be formalized through a Memorandum Agreement prepared and negotiated by our Real Estate Group.  The same approval process as setout above applies.

Complete office inventories will be conducted once a year through a designated administrator who will be held accountable to manage space requirements and inventory.

Please contact Deborah Arango (ext. 3-4256) or Dawn Fournier (ext. 5-8291) if you have any questions or comments regarding this communication.

Thank you.