You will not beleive what was said in the artical below.

----- Forwarded by April Hrach/SF/ECT on 05/22/2001 11:04 AM -----

	Catherine McKalip-Thompson@ENRON COMMUNICATIONS
	05/22/2001 10:54 AM
		 
		 To: Scott Healy/SF/ECT@ECT, April Hrach/SF/ECT@ECT, Jeff 
Dasovich/NA/Enron@ENRON, Joseph Alamo/NA/Enron@Enron
		 cc: 
		 Subject: accusations get nasty

see article below
----- Forwarded by Catherine McKalip-Thompson/Enron Communications on 
05/22/01 10:59 AM -----

excerpt from an article

Joe W. Kolb
Environmental Manager, Enron Corp
713/646-6180      713/345-6164  fax
3AC  1517


----- Forwarded by Joe Kolb/ENRON_DEVELOPMENT on 05/22/2001 08:00 AM -----
                                                                              
                                      
                    
Bill                                                                          
                  
                    Osborne/ENRON@        To:     John 
Steenberg/ENRON@enronXgate, Ted Ryther/ENRON@enronXgate,     
                    enronXgate            William Kendrick/ENRON@enronXgate, 
Joe                                    
                                          
Kolb/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT                                  
                    05/22/2001            
cc:                                                                       
                    07:54 AM              Subject:     now that's not 
nice!                                    
                                                                              
                                      
                                                                              
                                      
from:

California Blame Game Yields No Score
---
Probes Reveal Little Evidence Suppliers Acted Illegally
By John R. Emshwiller
05/22/2001
The Wall Street Journal

While the energy suppliers are generating "unconscionable profits," the
question remains "whether they are illegal profits," says California
Attorney General Bill Lockyer, who has offered rewards of as much as
hundreds of millions of dollars for information about lawbreaking in the
energy business.

Mr. Lockyer says he believes his office will eventually file civil charges
against suppliers. He would very much like to add criminal counts. "I would
love to personally escort [Enron Corp. Chairman Kenneth] Lay to an 8 x 10
cell that he could share with a tattooed dude who says `Hi my name is
Spike, honey,'" adds Mr. Lockyer. Houston-based Enron is a major
energy-trading company. Like other such firms, Enron has denied wrongdoing
in the California market.

Mark Palmer, Enron's vice president for corporate communications, said Mr.
Lockyer's comment about Mr. Lay "is so counterproductive that it doesn't
merit a response."


bill.osborne@enron.com
Enron Transportation Services
713/646-7889  713/646-7867 fax
3AC 3141