Black Hills Gty

Don--

I apologize for not getting back with you sooner, but it's been really crazy
around here. Jason Williams (a manager here in the credit group) and I have
reviewed Black Hills and can accept a parental Gty in the amount of $7.5MM to
cover financial and physical transactions with Enron North America Corp. I
have attached a Gty draft below for you to review.

However, to cover the current physical business between ENA and Enserco, we
still need to obtain an increase in the current L/C. We have an estimated
$4.8MM outstanding (with the bulk of the exposure stemming from December
sales to Enserco). As we discussed before, we can look at decreasing the
Enron Canada L/C to cover the increase that is needed.

Please give me a call to discuss our positions at 713-646-6002.

Thanks,

Veronica Espinoza