Enron Corp. has authorized the Unit to file suit immediately against Event 
Resources Incorporated (&ERI8) and Diane Nielson (the president and one of 
the owners of ERI) for breach of contract and conversion of a deposit of 
approximately $248,000.00 relating to the Enron 2000 Holiday Party.

Additionally, Enron will be making a demand for defense and indemnity on ERI 
pursuant to an arbitration filed by Hilton Hotels Corporation, as managing 
agent for Palacio Del Rio, Ltd. against ERI and Enron Corp.  Hilton alleges 
that ERI owes Hilton approximatley $135,000.00 in penalties for breach of a 
reservation agreement and that ERI was acting as Enron Corp.'s agent at the 
time.  If ERI does not assume its defense and indemnity obligations, Enron 
Corp. will sue ERI for that as well.  

If you know of any reason that Enron Corp. should not pursue these suits, 
please contact me by e-mail at bdavis@enron.com by Thursday, December 14, 
2000 at 5:00 p.m.  If I do not hear from you by then, I will assume that you 
have no objection to Enron Corp. pursuing these suits.