Audit Committee Meeting/Engagement Letters

Because all of the members of the Audit Committee will not be available for a telephonic meeting until Wednesday morning, the Audit Committee meeting to approve the various engagement letters has been scheduled for 10:00 AM on Wednesday morning. Work by the Audit Committee's advisors will commence in advance of that meeting.

I have provided Pace Consultants with my suggested changes to its engagement letter, and those changes have been made by Pace Consultants. The revised engagement letter is being reviewed by Audit Committee counsel.
As soon as it is approved by Audit Committee counsel, Stan Horton or Dana Gibbs can sign it on behalf of EOTT, and Pace will immediately commence its work (if it has not already done so).

Let me know if you have any questions.

Walter W. Zimmerman
Senior Counsel
EOTT Energy Corp.
P. O. Box 4666
Houston, Texas 77210-4666
Phone: 713-993-5028
Fax: 713-402-2808
e-mail: walt_zimmerman@eott.com