Status of Audits & Cash Recoveries ,
 Following is a status of RAC initiated audits in 2001 and year-to-date cash recoveries related to the Merchant Investment Portfolio:

Oil & Gas Joint Venture Audits Completed:

Program		Operator		Gross Claims	Net Claims

Vastar			BP Amoco	$177,432		$  88,716
Hughes-Rawls		EPL		$285,176		$129,954
E. Sour Lake		Adobe		$285,126		$256,613
Total					$747,734		$475,283

Oil & Gas Joint Venture Audits Scheduled:

Program		Operator			Date

Cypress		Meridian Resources	10/01
Juniper			Bois D'Arc Resources	10/01
Vastar			Key Production Co.	12/01

Coal Venture Audits Completed:

Program		Operator		Gross Claims	Net Claims

Jupiter			Cline		$  66,250		$  66,250
Jupiter			Cline		$126,000		$126,000
Total					$192,250		$192,250

DPR                                 Cline	 The audit determined that, contrary to the agreement; excess funds were transferred to an investment account in Chris Cline's name rather than DPR.  Potentially $5.5 million was at risk to Enron.  The situation has been corrected.

Cash recovered in 2001 from Audits as of 9/30/01:

Oil & Gas - 2000			$315,579
Oil & Gas - 2001			$  43,913
Coal				$  66,250
Total				$425,742


Don Rollins
Enron Corporation
Risk Assessment & Control
713-853-9176
l..carson@enron.com