Gentlemen,

We wanted to make you aware of some discussions that are going on concerning 
the possibility of ETS clearing trades in lumber futures on behalf of Enron 
Industrial Markets.  Presently, ETS is not a member of the Chicago Mercantile 
Exchange, and has an omnibus account with ABN Amro through which our orders 
are placed.

Presently, EIM places its orders through one or more brokers who give up the 
trades at the end of the day to one or two institutions who will clear those 
trades for EIM.  The chief benefit which is sought out in EIM clearing lumber 
futures through ETS is the consolidation of their trade clearance business 
through ETS, and the elimination of the use of third parties that presently 
clear those trades.

As an operational matter, ETS is equipped to handle the business, as it 
already has the infrastructure to do so. 

The discussions are in a fairly preliminary stage, and have been principally 
among the business people.  We would welcome your input on this matter.

Regards,

Limor Nissan & Al Pennisi

Enron Trading Services Inc.
520 Madison Avenue
New York, NY 10022
Tel: 212-715-5283
Fax: 212-715-5608
Email: Limor.Nissan@Enron.com