Enron Mail

From:carol.clair@enron.com
To:larry.hunter@enron.com, jefferson.sorenson@enron.com, bob.bowen@enron.com
Subject:Additions to Special Handling List
Cc:susan.bailey@enron.com, susan.flynn@enron.com, tana.jones@enron.com
Bcc:susan.bailey@enron.com, susan.flynn@enron.com, tana.jones@enron.com
Date:Mon, 1 May 2000 11:50:00 -0700 (PDT)

Joe, Jeff an Bob:
Here is a summary of those counterparties that have had specific objections
to our new form of Annex A:

1. Sithe Energy - wants New York law to apply

2. Voest-Alpine Intertrading USA, Inc. - won't agree to the setoff
language. Credit should be consulted prior to any further trades to see if
they are okay with this given our relationships with this entity.

3. Madison Gas & Electric - will not agree to the "or otherwise" language in
the setoff language. Again, this is a credit issue.

4. Cargill - wouldn't review the new language because we are close to getting
a master in place with them. Sara expects this to happen in the next few
days.

5. Idacorp Energy Solutions, L.P. - same as Cargill. I am working on this
one and their attorney owes me a response. This one may take a few weeks.

6. Formosa Plastics - this is the counterparty that sent the threatening
letter. It didn't appear from our records that we have traded financial
derivatives with them recently.

7. General Electric Company - won't accept the chnages and have failed to
tell me specifically what they object to. I will continue to follow up with
their attorney.

8. Basin Exploration, Inc. - same as General Electric.

9. TransMontaigne Product services Inc. - sent letter out on March 30 saying
they would respond in 30 days and I have never heard back from them. I will
follow up with their attorney.

10. Reliant - they didn't accept the new language that we added as clause (z)
to Section 3(e) and wanted to deal with this differently in the confirmation
as a trigger that would give us the right to call for collateral. Credit
should be alerted.

11. Devon Energy - they had in the past requested more time to review Annex A
and when I followed up with them last week, they still didn't have a response.

12. Smurfit - Stone Container - same as Devon energy.

13. Public Service Gas & Electric Company - we are close to finalizing an
ISDA with them. If we do any trades with them before one is signed they have
requested chnages in few areas to match what we have agreed to in the iSDA
negotiations. I can prepare a mark-up.