Re: Engage

Dan,

I provided all the information that you are asking for on the original credit
worksheet I e-mailed to ENA legal on August 29. You will notice in the
comments section the Enron entities I wanted covered in the guaranty along
with the Contracts that needed to be reference. If you need a copy the
specific contracts that need to be covered they can be obtained through the
documentation group, or through 'Live Link' on our computers. Please make
note of the name change that has now occurred with respect to Engage.

Russell

Dan J Hyvl
10/13/2000 10:24 AM
To: Russell Diamond/HOU/ECT@ECT
cc: Debra Perlingiere/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, William S
Bradford/HOU/ECT@ECT
Subject: Re: Engage

Russell,
We need closure on the guaranty issue. All of the guaranty formats you
provided to me covered specific enron entities under specific contracts that
were identified in the guaranty. If you can give me the specific contracts
for each of the other enron entities you want covered by the Gas physical
master contract of ENA whose payment obligations to Engage Energy Marketing,
L.P.you want guarantied by Enron, I will take the lead to draft the guaranty
and have it forward to Enron Corp for approval prior to sending it out as a
draft to Engage Energy Marketing, L.P.

Russell Diamond
10/13/2000 10:11 AM

To: Dan J Hyvl/HOU/ECT@ECT, Debra Perlingiere/HOU/ECT@ECT
cc: Jeffrey T Hodge/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT
Subject: Re: Engage

Dan,

This is in response to my continued efforts with legal to make note of my
intended priority of executing a Master Firm with Coastal Energy (formerly
Engage US). As previous e-mails below indicate and phone calls with the ENA
legal group and Coastal, the draft has yet to be sent out. I have confirmed
with Coastal today, they have STILL not received the draft although are
expecting this from ENA. We have outstanding exposure with this entity and
is important from a credit, legal, and contractual standpoint that an
agreement is executed. I understand that in the past they have been
unwilling to negotiate a Master although I want one put in place. Please do
what you need to, to get this draft sent to the counterparty.

Regards,
Russell

---------------------- Forwarded by Russell Diamond/HOU/ECT on 10/13/2000
10:00 AM ---------------------------

From: Russell Diamond
09/28/2000 10:07 AM

To: Dan J Hyvl/HOU/ECT@ECT
cc: Debra Perlingiere/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT
Subject: Re: Engage

Dan,

Per Debra's e-mail to me, why can we not include other entities on this
guaranty, it seems we have got guaranty's in place with other counterparty's
in which they reference specific contracts as well as entities not related to
the contract, i.e. Sempra, Duke, Aquila, Dynegy,......

Dan,
I see the execution of this contract as a priority considering the trading
volumes on Enron Online and current market conditions. I know in the past,
we have been unable to negotiate a Master Firm with Engage US, although their
legal group is fully aware of our request to negotiate a contract. Please
send the draft out to the contact listed on the credit worksheet and
priortize the negotiation of this contract.

Regards,
Russell

DEBRA PERLINGIERE
09/27/2000 12:05 PM
To: Russell Diamond/HOU/ECT@ECT
cc: Dan J Hyvl/HOU/ECT@ECT
Subject: Engage

This draft has not been sent due to pending guaranty issues. The attached
has guaranties for The Coastal Corporation and Enron Corp. for 20mm / 30 mm
( per your change) and are specific to this agreement. Dan has advised the
guaranties are written for the agreement and we cannot change to include
other Enron Companies. You will need to contact Enron Corp. for a guaranty
to included other companies.

Please let me know how you wish to proceed. Finally, the contact on your
worksheet is Faye Carlin (713) 877-7133

Debra Perlingiere
Enron North America Corp.
Legal Department
1400 Smith Street, EB 3885
Houston, Texas 77002
dperlin@enron.com
Phone 713-853-7658
Fax 713-646-3490