Schedule 4.11

----- Forwarded by Richard B Sanders/HOU/ECT on 12/18/2000 02:22 PM -----

Steve HPL Schneider
12/18/2000 07:16 AM

To: Richard B Sanders/HOU/ECT@ECT
cc: Barbara N Gray/HOU/ECT@ECT, Brian Redmond/HOU/ECT@ECT, Patrick
Wade/HOU/ECT@ECT
Subject: Schedule 4.11

Item #11 (retained) has changed and needs to be updated on the schedule.
Pintail has elected not to accept our proposal and has submitted termination
under the contract. Their future actions are unknown at this time.

The potential arbitration proceedings with Shanghai needs to be added to the
list as a retained litigation. Contact Britt Davis for details.

Item #3 (unretained) probably needs to clarify the current situation. In
this proceeding, it is my understanding that HPL has already condemned the
property and posted the appropriate bond as per the Court order. The
landowners were not satisfied with the findings of the Commissioners and have
filed suit seeking a higher value.

It is unknown at this time whether there will be any litigation that comes
out of the A/S pipeline rupture incident in Mt Belvieu.