Enron Mail

From:dan.hyvl@enron.com
To:russell.diamond@enron.com
Subject:Re: Coastal Merchant Energy--Outgoing Gty
Cc:clement.abrams@enron.com
Bcc:clement.abrams@enron.com
Date:Wed, 17 Jan 2001 08:53:00 -0800 (PST)

Russell,
Regarding their first point, we should only guarantee amounts that are
covered by our contracts. Non contract amounts should not be subject the the
guarantee, incoming or outgoing.
Remember that we need to keep the guaranty amounts specific as to each enron
entity. This is because the part that pertains to Houston Pipe Line Company
will need to be deleted from the guaranty and a separate guaranty from HPL's
new parent will need to take its place.
Somehow we need them to accept buyin on the fact that the new guarantee will
not be effective until the old guaranty has been superceded, even if this
takes the action of their spun off entity.

Clement,
Do you agree?



Russell Diamond
01/16/2001 12:35 PM

To: Clement Abrams/Corp/Enron@ENRON, Dan J Hyvl/HOU/ECT@ECT
cc:
Subject: Coastal Merchant Energy--Outgoing Gty

Clement, Dan,

Please give me an update on this guaranty.

Thank you,

Russell


---------------------- Forwarded by Russell Diamond/HOU/ECT on 01/16/2001
12:31 PM ---------------------------



From: Russell Diamond
01/05/2001 02:10 PM





To: Clement Abrams/Corp/Enron@ENRON, Dan J Hyvl/HOU/ECT@ECT
cc: Kiran.Parthasarathy@CMenergy.com @ ENRON
Subject: Coastal Merchant Energy--Outgoing Gty

Clement, Dan,

Below is an e-mail from my counterpart at Coastal with comments to the
revised Enron Corp draft that Clement provided to me in his e-mail on Dec..
21st. Can each of you please review these concerns. If the Master will not
be executed until after their merger with El Paso, I think it is OK to accept
a Unified guaranty cap instead of specifif limits. I was origninally thought
the reason for the specific dollar limits was because of Contracts.

Thanks
Russell


---------------------- Forwarded by Russell Diamond/HOU/ECT on 01/05/2001
01:55 PM ---------------------------


Kiran.Parthasarathy@CMenergy.com on 01/04/2001 01:46:03 PM
To: Russell.Diamond@enron.com
cc: Porter.Ryan@CMenergy.com, Don.Fishbeck@CMenergy.com
Subject: RE: Pending Guaranty for Physical Business




Russell,

We looked at the revised redline on the Enron physical business sent by you
on Dec 21st 00.

We have the following important comments:

(1) The first page of the Guaranty refers to specific Contracts that will be
covered by the Guaranty and one identified Contract is the Enfolio Master
Firm Purchase/ Sale Agreement.? As you are aware, this Contract has not been
signed between Coastal Merchant Energy and Enron companies and will not
probably be signed (if and) until our pending merger is completed.? Therefore
we request that the Guaranty language be broadened to include all Obligations
of the Enron entities to CME (and not be Contract specific).

(2)The third page of the Guaranty discusses Maximum Limit (Section 2) and
sets specific numerical caps for each of the covered Enron entities.? We had
requested for a unified Cap earlier and once again request that a unified Cap
be set for all entities.?

(3)The fifth page of the Guaranty (Section 9), says that this Guaranty will
supersede the Old Guaranty that was issued jointly to Engage US and Engage
Canada.? As you are aware, we are not affiliated or connected with Engage
Canada and therefore cannot bind Engage Canada whatsoever in the proposed
Guaranty.? That was the rationale for our insert in that paragraph ("insofar
as it respects Contract Party").? This was deleted in your revised redline.

We are anxious to complete this Guaranty as soon as possible.? We suggest, if
it is necessary, a conference call involving ourselves and our Counsel.

Please respond at your earliest convenience.

Thanks
Kiran


-----Original Message-----
From: Russell.Diamond@enron.com [mailto:Russell.Diamond@enron.com]
Sent: Thursday, December 21, 2000 10:24 AM
To: Kiran.Parthasarathy@CMenergy.com
Cc: veronica.espinoza@enron.com; Michael.Hugetz@CMenergy.com;
Dai.Nguyen@CMenergy.com; Don.Fishbeck@CMenergy.com
Subject: Re: Pending Guaranty for Physical Business


Kiran,

Please see attached comments from our legal group.? If there are any
additional concerns regarding the comments please contact Clement Abrams-
713-853-5986.

Thank you,
Russell

(See attached file: Coastal Outgoing.doc)