Aquilia

It never ends.
---------------------- Forwarded by Mark Taylor/HOU/ECT on 01/24/2000 03:35
PM ---------------------------

Kathryn Cordes
01/24/2000 03:30 PM

To: Bob Shults/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Debbie R
Brackett/HOU/ECT@ECT, David Forster/LON/ECT@ECT
cc: Brent A Price/HOU/ECT@ECT
Subject: Aquilia

Bob:

This communication is to keep everyone informed of the back office issues
related to EOL trades with Aquilia

The Aquilia office (Aquilia Energy) in Omaha contacted our Settlements team
regarding the EOL day deals(invoices) stating that they were not Aquilia
Energy or Aquilia Risk Deals but rather Aquilia Southwest deals. Aquilia
Southwest is not approved for EOL trading. To ensure timely payment,
Settlements faxed all the invoices to the San Antonio office and have been
notified that payment for these invoices to Aquilia Energy and Aquilia Risk
will be made by Aquilia Southwest. Aquilia wanted us to change the
counterparty to Aquilia Southwest but it was explained to them that these
were EOL deals and the counterparty would not be changed.

Scott Mills provided a query of Jan. EOL deals to (just for Texas business)
Settlements to help them gauge and anticipate potential counterparty issues.

Settlements might be able to have another billing address set up for Aquilia
Energy with the address being the San Antonio office in order to minimize the
effort to getting the invoices to the correct office.

I have not heard anything more regarding an assignment processes for Aquilia
Risk/Energy and would like to know were that stands. I would like
clarification about Aquilia Risk having credit approval taken away for
Physical deals.

Thanks,
KC