FYI.
m
---------------------- Forwarded by Mike McConnell/HOU/ECT on 10/30/2000 
11:32 PM ---------------------------


Robert C Williams@ENRON_DEVELOPMENT
10/30/2000 01:40 PM
To: Mike McConnell/HOU/ECT@ECT
cc:  
Subject: First Gas

Privileged and Confidential Attorney-Client Communication

Mike Brown, David Terlip, Janice Moore and I met today.  Plan is for Mike to 
get an answer from Siemens (probably this week or next) on spec.  If Siemens 
amenable to relax First Gas' spec to plant, request First Gas to relax it's 
spec to us.  Mike will report to you as soon as he has heard from Siemens.   
If either Siemens or First Gas recalcitrant, move to litigation strategy.  
This would mean at next cargo delivery (due mid-November):  (1)  if cargo 
"off spec" demand separate test using "ashing" technique (more likely to 
pass) and if it passes using "ashing" declare on spec and arbitrate dispute 
over acceptance of "ashing" as industry standard; (2) if cargo rejected 
(either because First Gas refuses to accept "ashing" or because off spec even 
with "ashing") resale cargo and force First Gas to locate alternative 
supplies; dispute First Gas invoice for cost of cover.   Mike mentioned a 
possible dispute over storage which could also arise with the next delivery.  
This could bring us into a dispute with First Gas even if the cargo is on 
spec.

Our plan is to get back to you in any event next week when you return with a 
status report.

Please let me know if you have any questions.

Cheers.  And congratulations on the Sooners' win.