In re M/V SANTA CLARA

Andrew,

Dan Rogers and I have spoken with Wayne Perry, who is the Enron contact for
the negotiations with Exmar. He was unaware of this arbitration and believes
that his contacts with Exmar are similarly unaware of it. Perry will be in
London Wednesday for a conference with Exmar and wants to bring this
arbitration to Exmar's attention, in the hopes that it can be quickly
resolved on a business relationship basis.

At your earliest convenience, would you please e-mail (my first choice) or
telefax (my second choice) to me an executive summary of this matter
(something very succinct, preferably in very easily readable bullet-point
format) with (1) facts, (2) status, (3) best points worst/points, and (4)
recovery/exposure briefly outlined? Also, would you please advise me who our
opposing solicitor is, and his or her firm? Last, if you are aware of the
name of the primary Exmar in-house lawyer or business person on this matter.

For this information to have the maximum impact, I need to have it in Perry's
hands before he meets with Exmar, and the sooner before, the better. Perry
knows that he is not to hand this information over to Exmar, although if you
wanted (and have the time) to make a second executive summary specifically
for him to give to Exmar, that would be fine as well.

Many thanks for your prompt response. Again, my hope is to try to get this
thing dismissed by year-end.

Britt
----- Forwarded by Britt Davis/Corp/Enron on 12/11/2000 08:47 AM -----

Britt Davis
12/08/2000 08:21 AM

To: andrew.bicknell@clyde.co.uk
cc: Richard B Sanders/HOU/ECT@ECT, Harry M Collins/HOU/ECT@ECT, Michael A
Robison/HOU/ECT@ECT, Daniel R Rogers/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Alan Aronowitz/HOU/ECT@ECT, George R Lachner/HOU/ECT@ECT, Paul
Henking/SIN/ECT@ECT
Subject: In re M/V SANTA CLARA

Andrew,

This will confirm our telephone conference of yesterday. Again, I will be
your new contact at Enron in the above-referenced case. You advised that
Exmar, the disponent owner of the M/V SANTA CLARA, has made a demurrage claim
against EGLI, who fixed the charter with Exmar, of approximately $165,000,
arising out of the loading of a cargo of propane on the ship in March of
1991. You also advised that EGLI has a counterclaim for recovery of
deadfreight in the amount of approximately $150,000. This matter has
reportedly been only sporadically active over the many years since the claims
were made, and is now ready to be set for an arbitration date.

You mentioned that Exmar's attorney had been unresponsive to your suggestion
that the parties just drop their respective claims. I understand that you
feel this may be due to Exmar's attorney, rather than his client. You
further mentioned that you have read that some Enron entity is or has in the
recent past entered into charters with Exmar.

It makes no sense for Enron and Exmar to pursue this matter further, given
what you have told me. My plan is to confirm that Enron has in fact a
business relationship with Exmar that would allow us to go forward with a
"drop hands" settlement. If you retained the publication in which you read
about the recent charters, I would ask that you send it to me immediately.
Since I don't yet have the file from my clients, please also send me the
correct spelling of Exmar's name at your earliest convenience.

By copy of this e-mail, I am asking everyone who I can think of whether they
know if any Enron entity has (or has had in the recent past) a ship under
charter to Exmar. If one of you can suggest other names I might check,
please let me know. I would like to put this old dog out of its misery
before year end if it is humanly possible to do so.

Britt