Here is an update from Jeff Keeler on the status of our proposed chnages to 
the derivatives section of the bankruptcy code amendments.
Carol
---------------------- Forwarded by Carol St Clair/HOU/ECT on 02/02/2000 
01:18 PM ---------------------------
   
	Enron North America Corp.
	
	From:  Jeffrey Keeler @ ENRON                           02/02/2000 12:07 PM
	

To: Carol St Clair/HOU/ECT@ECT
cc: elevinso@cwt.com 
Subject: Re: Bankruptcy Legislation  

Good to hear from you, Carol.  All's pretty well here in DC with the 
family...actually the family will be expanding...we're expecting another baby 
in early August.  

I'm glad you got in touch...I had an update to do for you anyway based on 
recent events.

The Senate is moving forward with their bankruptcy legislation, and it will 
likely pass today or tomorrow.  The Senate bill will include our technical 
correction on production payments, but will not include any DOI language 
(which is good) or our derivatives changes (which is not the best result, but 
OK).   Based on conversations on Capitol Hill and with industry folks, the 
best place to do our amendments would be in the conference committee that 
will reconcile the differing House and Senate versions of the bill.   
According to most sources, the House folks have a much better handle on the 
financial contracts/derivatives issues and they will take the lead in making 
some technical changes to that title in conference.  The Senate provisions on 
financial contracts are considered more of a "placeholder."

I met yesterday with counsel to the House Judiciary Committee and she was 
fairly receptive to our ideas.  Again...and we've found this all along...they 
want the President's Working Group sign off, as well as the OK of other key 
industry groups (ISDA, Bond Market Association) before they accept anything 
as a "non-controversial" technical fix.   The Bond Market folks have already 
presented a package of non-controversial technical corrections for inclusion 
in conference, and I think they would be amendable to adding our changes to 
their package.  

Because we need to get PWG sign-off, we're in the position of probably being 
successful on adding "weather derivatives" to the definition of swap 
agreement, and on our changes to the netting provisions...but we're still 
left hanging on our suggested change to the word "regularly."

I've talked to Ellen about possible other ways of tackling the "regularly" 
problem, but there does not seem to be a way to cover a "one off" transaction 
unless without getting rid of the "regularly" requirement.  I'll continue to 
see if there are other suggested approaches.   In meeting earlier this year 
at Treasury with Mark Haedicke, Assistant Secretary Lee Sachs indicated they 
would be amendable to talking about other ways of solving the "regularly" 
problem, so the lines of communciation are open.  We just need to decide 
quickly whether to give up on this issue, or come up with a palatable 
solution.

On another topic, I met with staff of the House Banking Committee, who have 
been waiting to see the fate of the bankruptcy bill before moving legislation 
that amends the banking statutes on netting and other derivatives issues, but 
also includes bankruptcy language.  I wanted to make sure that they are aware 
of our suggested amendments, so that any efforts out there....bankruptcy 
legislation, banking legislation....are consistent.    

Perhaps a conference call with you, me and Ellen (and Lech) is in order to 
figure out where we go next.   How does Friday (the 4th) work for everyone?





Carol St Clair@ECT
02/02/2000 10:32 AM
To: Jeffrey Keeler/Corp/Enron@ENRON
cc: Mark Taylor/HOU/ECT@ECT 

Subject: Bankruptcy Legislation

Jeff:
How are you doing?  Hope things are going well with you and your family.  Can 
you e-mail me with an update of where things stand on the legislative front, 
particularly with respect to the derivatives legislation that we were 
lobbying for?  Our traders want very much to be able to use Master Netting 
Agreements with certain of their counterparties and we are currently 
exploring the possibility of accommodating them, subject to the bankruptcy 
concerns that we may have.  I look forward to hearing from you.
Carol