Re: Enron Credit Inc.  ("ECI") ,
 Hi Sara & Tom,

Sara, I stopped by your office to discuss ECI but you are in a meeting.  

As per our discussion yesterday, I had a scheduled conference call with Anna 
Meytina of Bear Stearns to discuss ECI.  (Sara, the call was not at 1:30 but 
rather took place before noon today).   In light of our calls with Anna, here 
is where we stand:

1. Brokerage Agreement: I asked her how we are doing on getting the final 
draft of the Agreement to me.  She indicated that she was trying to send a 
redlined version today as promised.  She still has get approval on the 
arbitration provision and limited liability provision from her Managing 
Director.  this is what is manily holding up the process, not any lack of 
diligence on our part.

2.  Assignment: Anna and I discussed my comments to the Assignment Agreement 
-- she agreed to make all of the changes and to do so by the end of the day.  

3.  Guaranty: Anna and I have a scheduled conference call to discuss my 
comments to the redlined guaranty she sent back to me.

Anna represented that, in light of the hold-up from her Managing Director, it 
was unlikely that she could get any agreement signed by the end of the day 
today but agreed that Wednesday was a realistic possibility.

Cheryl Nelson
Senior Counsel
EB3816
(713) 345-4693
sara.shackleton@enron.com