Re: Indemnity Agreement

I just spoke with Krystal at Kern and John Stafford at Patina:
Kern Legal will not finish reviewing until Monday. At that time they will
approve, revise, or reject the changes to the Assignment Agreement. I
reiterated that Enron is comfortable with the changes.
John Stafford is comfortable with Gerald's Indemnity Letter Agreement
(below), but would strongly prefer to have the indemnity language
incorporated into the Assignment Agreement itself, if it is possible in a
timely fashion.
John indicated he would be willing to conference in with Gerald and Kern's
attorney(s) first thing Monday morning if we felt it would be helpful.
Bottom line: It looks like we can shut the door on this, one way or the
other, on Monday morning.

Tyrell Harrison
303 575 6478

Gerald Nemec@ECT
04/13/2001 10:58 AM

To: Tyrell Harrison/NA/Enron@Enron, jstafford@patinaoil.com
cc: Barry Tycholiz/NA/Enron@ENRON
Subject: Indemnity Agreement

Attached is a letter agreement which specifies ENA's indemnity obligations
for Patina wrt the Kern Transport Agreement. Please review and if acceptable
print and execute along with the Kern River assignment form. If you wish to
discuss, please contact me at (713) 853-3512. Thanks for your assistance.