Chris Long (Enron) and I spent yesterday on Capitol Hill.  We met with House 
Agriculture Committee Minority and Majority Staff, Senate Banking Committee 
Staff and Senate Agriculture Committee Staff.  The bill clearly is moving and 
there is a good chance it will go to the Floor of the House next week.  The 
bilateral exemption for physical commodities (non-agricultural commodities) 
is accepted and should be secure.  We have problems with the electronic 
trading facility exemption for physical commodities.

House

The House Agriculture Committee remains inclined to exclude metals from the 
exemption.  We are working with the Commerce Committee (which has not 
excluded metals) to change that result.

Senate

We have a much more severe problem in the Senate.  Senate democrats led by 
Senator Harkin are very concerned to go against the CFTC in favor of big 
energy companies.  They want the CFTC to endorse the exemption.  
Unfortunately, as you are aware, the CFTC (recently the Chairman himself) 
have been heavily lobbying against the exemption.  We are working with staff 
and will keep you posted.

We have prepared talking points and bullets which are still in draft to 
distribute to the Hill.  I would appreciate your comments on them and your 
thoughts.


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 - Bullets.doc
 - H.R. 4541 Energy Group Talking Points.doc