Yes, you are correct.  The SLP interest will be hedged at the same levels as 
the GP interest.

avr




Gordon McKillop@ENRON
08/30/2000 03:31 PM
To: Andrea V Reed/HOU/ECT@ECT
cc:  
Subject: Raptor Hedges

Andrea:
I wanted to double check that the interest going into Raptor is ENA's and 
SLP's interest in JEDI.  Please let me know if this is correct.
Thanks,
Gordon
---------------------- Forwarded by Gordon McKillop/NA/Enron on 08/30/2000 
03:22 PM ---------------------------


Scott Sefton@ECT
08/30/2000 01:38 PM
To: Julia Murray/HOU/ECT@ECT
cc: Gordon McKillop/NA/Enron@ENRON, Ryan Siurek/Corp/Enron@ENRON, Trushar 
Patel/Corp/Enron@Enron, Stuart Zisman/HOU/ECT@ECT, Mary Cook/HOU/ECT@ECT, 
Sara Shackleton/HOU/ECT@ECT 

Subject: Raptor Hedges

I thought I'd communicate to the group some recent developments.

1. Gordon and Ryan advise that the swaps for assets in JEDI 1 and 2 will 
cover our proportionate economic interest in the asset within JEDI. Gordon 
believes the spreadsheet of proposed swaps reflects this. The swap will be 
between Harrier and Talon and there will be no back-to-back swap with JEDI. 
There should be no required disclosures to CalPERS resulting from these 
hedges. 

2. Gordon and Ryan advise that for assets currently on our balance sheet that 
are hedged with Raptor and then sold to Condor,  there will be no reduction 
in the hedge or any back-to-back hedge when it moves into Condor. The swap 
will be between Harrier and Talon.

3. Mark Taylor and Bob Baird have concluded that the swaps can be terminable 
by Harrier if the underlying security is sold.