ENRON
       CORP
	 7/6/95


	 Ken,

	 Kirk Whitehouse of Compass Bank called to say
	 they can do a $1,000,000 non-purpose LOC for
	 you based on 80% coverage which will give you
	 approx. $900,000 in availability based on the
	 current stock price. They are prepared to give
	 you the Libor + 1.5, renewable annually, interest
	 payable quarterly.

	 Please advise.


	 831-5790                         4$
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			  GOVERNMENT
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					       Sally K.p.rs


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