American Central Energy

Russell,

In the future please put me on all notices about counterparty trading. I am
responsible for the Legal Department's approval of online counterparties
across all product areas and need to know any limitations that might affect a
counterparties' ability to trade.

Thanks!
---------------------- Forwarded by Tana Jones/HOU/ECT on 04/10/2000 09:55 AM
---------------------------

Susan Flynn
04/10/2000 09:27 AM
To: Tana Jones/HOU/ECT@ECT
cc:
Subject: American Central Energy - NO TRADES

FYI
---------------------- Forwarded by Susan Flynn/HOU/ECT on 04/10/2000 09:26
AM ---------------------------

From: Russell Diamond
04/07/2000 12:14 PM

To: William S Bradford/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, Tanya
Rohauer/HOU/ECT@ECT, Rod Nelson/HOU/ECT@ECT, Christopher Smith/HOU/ECT@ECT,
Mary Tudon/HOU/ECT@ECT, Nidia Mendoza/HOU/ECT@ECT, Brant Reves/HOU/ECT@ECT,
Russell Diamond/HOU/ECT@ECT, John Suttle/HOU/ECT@ECT, Tracy Ngo/HOU/ECT@ECT,
Lesli Campbell/HOU/ECT@ECT, Molly Harris/HOU/ECT@ECT, Paul
Radous/Corp/Enron@ENRON, Edward Sacks/Corp/Enron@Enron, Brad
Schneider/Corp/Enron@Enron, Tom Moran/HOU/ECT@ECT, Veronica
Espinoza/Corp/Enron@ENRON, Anne Bertino/HOU/EES@EES, Nichole
Gunter/HOU/EES@EES, Jeffrey T Hodge/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT,
Carol St Clair/HOU/ECT@ECT, Marie Heard/HOU/ECT@ECT, Susan Flynn/HOU/ECT@ECT,
Susan Bailey/HOU/ECT@ECT, Sheetal Patel/HOU/ECT@ECT, Larry Joe
Hunter/HOU/ECT@ECT, Julie Meyers/HOU/ECT@ECT, Stephanie Sever/HOU/ECT@ECT,
Souad Mahmassani/Corp/Enron@ENRON
cc:
Subject: American Central Energy - NO TRADES

American Central Energy, LLC's guaranty's have been revoked by their
guarantor, American Central Gas Companies. The guaranty's include a $1MM
guaranty supporting financial trading and a $2MM guaranty supporting physical
trading.

NO TRADES should be approved going forward.

The counterpary has been placed on Credit Watch for No Trades.

The appropriate traders have been notified although most of their
transactions are executed through EOL. Thier profile on EOL will be amended
to NO TRADES until more information is made available.

Russell