After speaking with Sen. Hagel and his staff, it was suggested that Ken Lay 
call Sen. Nickles in order to encourage the Senator to act on the Commodities 
legislation. If possible, the call should take place today.  Cynthia has 
alerted Sen. Nickles staff that a call may be coming.  Cynthia met with the 
Senator's staff this morning and they do not seem to be following the bill.

Our understanding of the situation is as follows:

1.  Lengthy negotiations with Gramm's staff went late into the night in order 
to find solutions to Gramm's issues.  We understand that 7 changes were 
offered (which Sen Hagel's staff  regarded as reasonable), but all were 
rejected by Sen. Gramm.  Gramm's staff must clear all changes directly with 
the Senator.

2.  Our understanding is that the House intends to attach the Bill to the 
last veto proof appropriations bill which it will send to the Senate, making 
it difficult for Gramm to kill the bill.  The session may last until early 
Sunday morning.

3.  If the Bill is passed in this fashion, Sen. Gramm will have an 
opportunity to address his remaining issues in a technical corrections bill 
during the next Congress - changes that most of the Senators would support.

4.  There are still negotiations taking place to reslove some of the major 
issues.  We understand that the Chicago Exchanges are involved in these 
discussions.  We are not sure whether these changes will be added to the bill 
that may be sent over to the Senate by the House.


We will update you as soon as we learn more.