Max:
Please send to Sara Shackleton and Jeff Hodge copy of the LC and all amendments.

Tanya and Debbie:
Is Monica working on sending us copies of all of the LC's that expire this month?

Carol St. Clair
EB 4539
713-853-3989 (phone)
713-646-3393 (fax)
281-382-1943 (cell phone)
8774545506 (pager)
281-890-8862 (home fax)
carol.st.clair@enron.com

 -----Original Message-----
From: 	Sonnonstine, Max  
Sent:	Friday, January  4, 2002 4:24 PM
To:	Hodge, Jeffrey T.; Mellencamp, Lisa; St. Clair, Carol
Subject:	Texex Energy Partners

Good Afternoon,
	Credit has an issue with Texex Energy Partners that you should be aware of.  We received an amendment of an LC that reduces the coverage amount to $4mm and extends the expiry date to 1/15/02.  It covers physical MTM which we are in the money approx $2mm.  I assume that we are not performing on these contracts (some go out to 6/02), but Texex has not terminated.  I believe we should call Texex to extend the LC to protect the value of these contracts and if they refuse, we terminate and draw on the current LC.  Do you buy into this strategy?  Please advise at your convenience.

Thanks,

Max Sonnonstine
x58261