Tana,

Per my message to you on Friday, Frank and I are planning on working through 
this tomorrow.  It may be a good idea if you can join us as you are familiar 
with this type of request.  In addition, the transactions they provided in 
the Exhibit do not have transaction numbers, I am going to need these 
transaction numbers to understand the exposure.  If they can not provide the 
transaction numbers, then is it possible for the Confirm group to provide the 
active transactions we have with Fletcher so I can cross reference them with 
the exposure we show in our credit system, and tie them back to the 
transaction detail they have provided.

Thanks
Russell





From: Tana Jones on 02/20/2001 10:40 AM
To: Frank Sayre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Russell 
Diamond/HOU/ECT@ECT
cc:  
Subject: Assignment of Fletcher Challenge Swaps; Response to inquiry letter

Attached is an email I got from the lawyer for Fletcher Challenge.  
Obviously, he is on a short time frame, so we need to respond rather 
quickly.  Russell, we need some direction from Credit on how we want to 
proceed on this assignment.  Do you want to meet to go over this, and maybe 
give Bert a call, or what...?  Please let us know.

----- Forwarded by Tana Jones/HOU/ECT on 02/20/2001 10:37 AM -----

	"Robert Viguet" <rviguet@chamberlainlaw.com>
	02/19/2001 07:30 PM
		 
		 To: <tana.jones@enron.com>
		 cc: <david.taylor@apachecorp.com>, <jeff.king@apachecorp.com>
		 Subject: Assignment of Fletcher Challenge Swaps; Response to inquiry letter


Tana:

This email is just a follow-up on the telephone message that I left for you 
earlier today.  As I explained, our firm (Chamberlain Hrdlicka) represents 
Apache Corporation and I will be replacing Saul Laureles in concluding our 
work related to the assignment of certain natural gas price swaps from 
Fletcher Challenge Industries Limited ("Fletcher Challenge") to Shell 
Overseas Holdings Limited ("Shell"), and the reassignment from Shell to 
Apache Corporation. My contact information is as follows:

Robert J. Viguet, Jr. ("Bert")
Chamberlain, Hrdlicka, White Williams & Martin
1200 Smith Street, Suite 1400
Houston, Texas 77056
Telephone:  713-654-9693
FAX:   713-658-2553
rviguet@chamberlainlaw.com

You should have received a letter from Saul Laureles dated February 6, 2001 
via overnight courier requesting that your firm confirm certain facts related 
to the swaps to be assigned as described above.  We are looking for a written 
response to that inquiry at your earliest opportunity.  If there are any 
errors or other discrepancies in the list of swap transactions or other 
matters identified in the letter, we need to know as soon as possible so that 
there will be time to resolve those issues before the assignments are made.

This firm (Chamberlain Hrdlicka) has prepared a draft of the Assignment and 
Assumption Agreements for the transfer of the swaps from Fletcher Challenge 
to Shell and from Shell to Apache Corporation. Our draft of the assignment 
forms is being reviewed by attorneys for Shell now, but should be available 
for your review in a few days. The acquisition of assets of Fletcher 
Challenge Energy by Shell and Apache, and the related assignments of the swap 
transactions, is expected to closes in early March.

If you have any questions or comments concerning the proposed transactions, 
please don't hesitate to contact me.  I look forward to working with you.

This communication may be protected by the attorney/client privilege and may 
contain confidential information intended only for the person to whom it is 
addressed.  Any views or opinions expressed are solely those of the author 
and do not necessarily represent those of Chamberlain, Hrdlicka, White, 
Williams and Martin.  Any use, dissemination, forwarding, printing, or 
copying of this e-mail without consent of the originator is strictly 
prohibited.  If you have received this e-mail in error, please immediately 
notify Robert J. Viguet, Jr., by telephone at (713) 654-9693.