Re: WESTLAKE CONTRACT

Michael,
I am forwarding an email from Wade Hicks concerning an e\p mix contract
dispute. Is this in your area and if so can you assist Wade? I do not have
any contract documents relating to this in my possession.

W Wade Hicks
12/01/2000 01:51 PM

To: Dan J Hyvl/HOU/ECT@ECT
cc:
Subject: WESTLAKE CONTRACT

DAN,

THE LONG TERM CONTRACT IN WHICH WE DELIVER 10,000 BBLS\DAY OF E\P MIX

TO WESTLAKE PETROCHEMICAL WAS CANCELLED EFFECTIVE 12/31/2000 PER

MUTUAL AGREEMENT BETWEEN WESTLAKE AND ENRON.

FOR THE LAST 4 - 5 MONTHS WESTLAKE HAS BEEN SHORT PAYING THE INVOICES

IN THE AMOUNT OF $0.0025, WHICH IS THE PREMIUM ON THE CONTRACT. THEY SAY

THEY DON'T THINK THEY SHOULD HAVE TO PAY IT ANYMORE SO THEY DON'T.

DO WE HAVE ANY RECOURSE TO COLLECT THIS SHORTFALL?

OUR RELATIONSHIP WITH WESTLAKE HAS ALWAYS BEEN STRAINED AT BEST.

WOULD THERE BE LEGAL RAMIFICATIONS IF I JUST WITHHELD PRODUCT FOR

DECEMBER, WHICH IS THE LAST DELIVERY MONTH ANYWAY.

THANKS,

WADE