Panda Energy

Steve:

I talked with Ben this afternoon and understand that we are ready to proceed
with Panda Energy in a transaction involving the sale of member interests in
special purpose entities associated with the four(4) LV units. I have left a
message with Panda letting them know that we are prepared to proceed and will
begin preparing a set of draft definitive agreements for their review. I
have asked Panda to confirm that they are ready to receive these documents
and proceed. I understand that you are in Houston. Please call/see me
tomorrow morning so that we can discuss this transaction.

Kay: We need to prepare a draft set of definitive agreements for this
transaction. Can Carolyn complete this while you are in New York? Also,
what is the status of the LM Breakout contract for the 4 LV units. Let me
know.

Kathleen: We need to confirm tomorrow morning that we have received executed
CA's from Panda. I have the CA execution originals for the four Panda
entities at my desk for Ben's signature. These need to be received prior to
sending Panda the definitive agreements. We will fax signature pages to Ben
tomorrow.

Chris: See me tomorrow morning to discuss the technical spec's that were
sent to Panda

I will be at my desk by 8 am tomorrow morning.

Thanks,
Fred
x35406