PRIVILEGED AND CONFIDENTIAL
- -  Seeking Advice of Counsel - - 

Attached is a draft public statement for your review and comment.  

The groundrules for using these statements are as follows:

All press inquiries should be directed to Eric Thode.

We will use the more "basic statement" unless press inquiries are specific 
and informed by knowledgeable industry participants.

We will use only those parts of the more detailed statement which are 
necessary.

The document begins with a background piece to briefly educate Enron 
personnel who may not be aware of Project Stanley but may be called upon to 
respond to regulators' or customers' inquiries.

Aleck - - please get Seabrou's help filling in the blanks.

Richard - - feel free to forward to outside counsel as you see fit.