Impact Shares

John, Milly has asked me to move the share certificates for Impact Energy t=
o Enron Canada's control. These shares currently reside in a Morgan Stanle=
y account controlled by ENA. As you may recall Enron Canada bought and pai=
d for these shares and special warrants. Enron Canada directly owns 1,595,=
455 shares valued at USD$1.6 million and indirectly owns 1,300,000 shares (=
through JEDI) which Enron Canada beneficially owns 50% worth USD$650,000. T=
hese securities are worth USD$2.25 million to Enron Canada and I believe re=
present the only significant non trading asset in Enron Canada. Enron Cana=
da proposes to move all the certificates to the control of the legal group =
of Enron Canada. The logic is simple, Enron Canada has a fiduciary duty to=
its shareholders and creditors to control its assets and if they need to b=
e disposed we are in the best position to realize full value for the securi=
ties. Please advise if you have any problems with this proposal, otherwise=
I will make it happen on monday November 26, 2001.

Thanks John