Net-Out Agreement

Peter:

At the request of Tanya Rohauer, I am advising that Enron North America Corp. is willing to sign the Net-Out Agreement that you forwarded. Do you want to prepare the execution copies or do you want us to do so?

As an aside, we do not understand the reference to Oct 3 in your e-mail. That date has past and is inconsistent with payment dates for physical gas in general. Also, this refers only to the Net-Out Agreement. Others will be contacting you concerning the Master Netting, Setoff and Security Agreement.

Thanks,

Jeff Hodge
713-853-6911