Engage US/Canada ---- Issues

Hi folks,

I have been getting calls from both Engage US credit and Engage Canada credit
regarding the guaranty's we have in place and what they want in place. I
have also been working on getting the ISDA's and Master Physicals in place.
I want to see if we can get some resolution on these issues. Below is a list
of the entities Enron is trading out of and with which Engage entity. Can we
please work to get the contracts and guaranty's in place. Let me know how I
can move forward with my Engage contacts.

Enron Entity Engage Entity Contract
Type/Collateral Amnt. Engage Guarantor/Amnt
ENA Engage US ISDA $20MM Coastal $20MM
ENA Engage US Master Firm Purchase Sale $10MM Coastal $10MM
ECC Engage Canada ISDA $10MM Westcoast Gas $10MM**
ECC Engage Canada Master Firm Purchase Sale $15MM Westcoast Gas $15MM**

**With respect to the Westcoast Gas Guaranty, I am prepared to accept a total
amount of $25MM covering both guaranty's and both products. I know a
guaranty from Westcoast has been received for review by Mary Cook covering
financial transactions, although now this guaranty or a separate guaranty
should be received tied to the Master Physical between ECC/Engage Canada for
an additional $15MM.

Also, with respect to the Coastal guaranty between ENA and Engage US, I feel
we should get and give two separate guaranty's for financial and physical. I
have discussed this with Debra Perlingiere as it relates to the Master
Physical.

The guaranty issues seem to be the largest issues. Can I get an update from
each person involved with one of the above contracts to let me know where we
stand on these issues.

Regards,
Russell