Hello everyone,

We recently approved a nov-feb'01 10,000/d physcial sale.  This sale was 
broken down into three parts.

NR7689 5,000/d @ index - .10, with a floor of 2.95
NR7727 2,000/d @ index - .12, with a floor of 2.88
NR7730 3,000/d @ index - .17, with a floor of 3.09

The parent company of this entity provides a $800M gty that we utilize within 
the credit managment of this relationship.  We will need special language to 
be included within each of the confirms associated with legs 1 and 2 of this 
these trades.

Financial Legal:

Please see the attached credit worksheet to be used in the preparation of 
language to be included with the above referenced trades and then provide 
such language to the confirmation desk.  Let me know if I can be of any 
futher assistance.




Physical Legal:

Informally, managment of this relationship is based on the customer's 
capability to provide letters of credit to securitize positions.  However, a 
majority of the relationship is managed within spot market deal activity.  
During the spot month, exposures begin to build and we call upon them for LC 
support.  Formal requirements are not written into any contracts that are 
used to confirm these deals.  The three deals above, however, are well 
outside the spot month.  Therefore, if we do not take efforts to formally 
call upon the customer for LC support, when called upon to do so, they would 
not legally be bound to perform.  Therefore, I would like to provide a formal 
requirement within the confirmations of these trades that require security 
sufficient to Enron's specifications be provided no later than October 25.  
Language similair to that used within GTC confirmations with collateral 
language for activity conducted online.  Let me know if I can be of any 
futher assistance.