Challenge to exercise of Eminent Domain - Confidential Attorney ,
 Although I don't yet have all the facts, Steve Hall said that late yesterday 
(Friday) afternoon, the Governor exercised eminent domain over the IOU 
forward contracts that the PX had been in the process of auctioning to pay PX 
participants.  I would like Bracewell to research at least the following two 
possible ways this action is unlawful.  First, this violates the banking 
provisions of the PX tariff (Section 6).  These provisions requires the PX to 
hold all PX accounts in trust for PX participants.  Second, these are 
wholesale contracts and the State only has the right to exercise eminent 
domain concerning retail service.  I don't have any law to support the second 
idea but think it should be researched nonetheless.
phillip.allen@enron.com, robert.badeer@enron.com, tim.belden@enron.com, 