Rod,

Here are few questions that I would like to run by you:

I got your message at Noon today, you indicated that you had been able to 
contact the following:

David Clements
Barney Brasher
George Quittner
Larry Fenstad ----not yet notified
Elaine Conklin----not yet notified

I plan on starting on Monday November 6th attending Phil's Monday morning 
staff meetings.   I also plan on attending Phil's staff meeting on November 
13th - half day - afternoon.

Are there any key points that you want covered in a weekly report?   When do 
you want the report in hand?

I plan to start meeting with Phil and all his direct reports (one on one) to 
determine their needs from our organization, as soon as the announcement 
comes out.  I will work with our organization to develop objectives for 2001 
based off these interviews.

Do you have any concerns if I go ahead and get with Human Resources and get a 
posting for an Administrative Assistant for myself?  

John Keller had a three day meeting offsite scheduled for next week in the 
Woodlands, that George Quittner and I are scheduled to be a part of.   I plan 
on missing the second day due to the meeting with CES on Thursday.

Are there any other pressing issues that I need to be involved with next 
week?   I understand that the EOTT budgets are due to the Administrative 
Directors on November 7th and to Tracey on the 10th.   When will the budgets 
be presented to EOTT? 

I met with Jerry Martin several times this week.   We also meet with George 
Wasaff and Derryl Cleaveland in the GSS organization a couple of times.   We 
decided it would be best for all of Enron, as well as for ETS to have Four 
(4) of the recommended six (6) EE&CC Procurement personnel to go into the GSS 
organization rather than the ETS procurement department.    We have moved 
Jerry Thomas, Dwain Moody, Rick Perkins and Sue Perkins to the GSS 
organization.  George Wasaff and Jerry Martin have agreed that Jerry Thomas 
will continue to manage the procurement of materials for Florida's Phase IV 
and Phase V projects, while lending his knowledge of compression to all of 
Enron.   We will use our procurement personnel to execute the material 
requirements.

Therefore we are only bringing two (2) people into the ETS organization - 
Mary Lynne Dix and Josh Mayes.    Jim Davis and Jerry Thomas have expressed 
real concerns to Jerry, George and myself about these decisions.   If we 
continue to manage projects in the traditional EE&CC manner, their concerns 
are valid.   But we feel if we partner with the GSS organization and properly 
use third parties for the peaks, we can manage these projects efficiently.   
We will continue to monitor the Phase IV, Phase V and NBPL expansion project 
closely to assure no loss of productivity during this transition.

John Keller, yourself and I met with George Quittner this week.   George and 
I are reviewing our organization and working on how to manage the 
organization most effectively for ETS Operations.    We discussed 
possibilities this week and it is quite obvious that we have different 
opinions on where we should be going with this.
We will meet next week to finalize a proposal.   More to come.

Do you have a good feel for what my job title should reflect on my business 
cards?    Should I just hold off?

Thanks again for your vote of confidence and the job offer.   I look forward 
to serving this organization in this capacity.   I look forward to our new 
working relationship.   I feel like I have a great staff, very capable of 
addressing the challenges ahead and turning the opportunities into real 
advantages for ETS.

Morris