Lisa:

FYI, there has been activity regarding the KCS file, in particular, the 
status of the amendment to permit cross-netting of certain agreements and the 
impact of that amendment now that KCS has emerged from bankruptcy.  Two (2) 
new financial transactions have been executed and there is a VPP looming 
ahead for June 15.  The issue which we were trying to isolate is the effect 
of the amendment to the financial/physical agreements post-bankruptcy.  We 
concluded that KCS is bound post-bankruptcy (Carol St. Clair thought you may 
have had some reservations).  I'll keep you apprised of any developments.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com