Termination Agreement

We have received an executed Termination Agreement, effective as of Februar=
y=20
1, 2001, among El Paso Merchant Energy, L.P. ("El Paso") (being successor i=
n=20
interest to Coastal Merchant Energy, L.P. ("Coastal") (f/n/a Engage Energy=
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US, L.P.)) and Enron North America Corp. ("ENA"). This agreement provides=
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for: (a) the termination of the February 12, 1998 ISDA Master Agreement=20
between ENA and Coastal, (b) the acknowledgement of ENA and El Paso that al=
l=20
outstanding Coastal-ENA Transactions shall be governed by the December 1,=
=20
1999 ISDA Master Agreement between ENA and El Paso, and © the=20
acknowledgement of Enron Corp. (ENA=01,s parent), and El Paso Energy Corpor=
ation=20
(El Paso=01,s parent) that their respective Guaranty documents shall cover =
ENA=01,s=20
and El Paso=01,s obligations with respect to the Coastal-ENA Transactions.

Copies will be distributed.

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Cordially,
Susan S. Bailey
Enron North America Corp.
1400 Smith Street, Suite 3806A
Houston, Texas 77002
Phone: (713) 853-4737
Fax: (713) 646-3490
E:mail: Susan.Bailey@enron.com