Re: service of process

After a review of the translated complaint, Rob Cole determined that the suit
was a Risk Management matter and asked that we assist in the defense of San
Juan Gas. Together with Rob, we identified local counsel (Guillermo Ramos of
the Rivera, Tulla & Ferrer firm) and received Jim Derrick's permission to
retain the identified local counsel. Mr. Ramos has made an appearance on
behalf of San Juan Gas in the local fashion which provides for an automatic
extension of time within which to file a responsive pleading. Mr. Ramos is
presently preparing to conduct an initial investigation in order to determine
the nature of the responsive pleading to be filed.

Following our standard procedure, a file will be opened for this matter in
the Litigation Unit and progress made in the case will be reported in the ELU
Quarterly Report.

Richard B Sanders@ECT
01/09/2001 10:30 AM

To: David Grant/Corp/Enron@ENRON
cc:
Subject: Re: service of process

Where are we on this case?

David Grant@ENRON
12/22/2000 10:28 AM

To: Charles Cheek/Corp/Enron@ENRON
cc: Becky Stephens/Corp/Enron@Enron, Richard B Sanders/HOU/ECT@ECT, Robert
C. Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Re: service of process

We forwarded the translated complaint to Risk Management for review. Rob Cole
has indicated that it is a Risk Management matter and has asked that the Unit
assist Risk Management in obtaining local counsel and in providing a defense.
I will discuss the details with Rob on his return to the office next week and
will report the results of our analysis and recommendations.

Charles Cheek
12/20/2000 06:14 PM

To: Becky Stephens/Corp/Enron@ENRON
cc: Robert C. Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David
Grant/Corp/Enron, Richard B Sanders/HOU/ECT@ECT
Subject: Re: service of process

Becky, Please copy Dave will the summons and complaint. This should be the
system for all services involving any matter in Puerto Rico.

Bob, Are you still handling SJG matters or should this be sent to Richard
Sanders?

Dave, Please advise Bob, Richard, and me of the nature of the dispute.

Thanks to each of you.

Becky Stephens
12/20/2000 02:45 PM

To: Robert C. Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Charles Cheek/Corp/Enron@ENRON
Subject: service of process

The following documents, received today, have been forwarded for your
immediate review and consideration:

Dolores de Jesus Alvarez v. Municipio de San Juan, et al. v. San Juan Gas
Company, Inc., et al.; No. KDP 99-2193 (805), In the Superior Court of the
First Instance, San Juan Section, Puerto Rico. SUMMONS and COMPLAINT served
upon San Juan Gas Company, Inc. on 12/12/00. This paperwork was forwarded on
12/15/00 and received here on 12/20/00

PLEASE ADVISE IF NOT RECEIVED WITHIN 1 BUSINESS DAY.

Thank you !!

Becky A. Stephens
Litigation Unit, Enron Corp.
713/853-5025
713/853-6576 fax
EB4809