Pastoria Purchase Agreement

Good morning folks. I'm copying you on the latest draft of the purchase &
sale agreement. The Kern River provisions are in Section 7.13© on page
29. Basically those say that we assign the Precedent Agreement and Calpine
posts credit support by 3/15, Calpine has to bid in at least what we were
going to bid in, and if we don't close the sale of the Project to Calpine,
Calpine can put the transport back to us (limited to the volumes we told them
to commit to). We expect to be negotiating with Calpine today, so please let
Ron or me know if you have any questions or comments as soon as you can.

Do you know the status of Calpine's efforts with Kern River to post the
credit support?

Thanks.
---------------------- Forwarded by Karen E Jones/HOU/ECT on 03/12/2001 08:53
AM ---------------------------

Enron Capital & Trade Resources Corp.

From: "THOMAS J. MOORE" <tmoore@LLGM.COM<
03/09/2001 04:51 PM

To: rfarmer@thelenreid.com, johnk@calpine.com, samehta@thelenreid.com
cc: Andrew.Kelemen@enron.com, Karen.E.Jones@enron.com, Ron.Coker@enron.com
Subject: Pastoria Purchase Agreement

Attached is a revised version of Pastoria Purchase Agreement.

John, if you want to talk to Andy over the weekend, you can try him at home
(281) 565-5527 or on his cell phone (713) 306-6196. Andy says Sunday is
somewhat better than Saturday for his schedule.

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