Louise,

This e:mail relates to the fact that the two Azurix people helped us out on getting the water deal done although the Azurix agreement will be terminated and Azurix will not receive any income associated with the ultimate water agreement that was put in place.  Originally they were looking at some success fees and origination totalling up to $3.1MM, but because the purchase price adjustment due to the water agreement cost ENA $5MM, they are appropriately getting nothing.  

Regards,

Chris



---------------------- Forwarded by Christopher F Calger/PDX/ECT on 03/20/2001 11:25 AM ---------------------------
From:	David Parquet on 03/20/2001 10:40 AM
To:	John Garrison@ENRON_DEVELOPMENT, Amanda K Martin@ENRON_DEVELOPMENT
cc:	Jeff Skilling/Corp/Enron@ENRON, John J Lavorato/Enron@EnronXGate, Christopher F Calger/PDX/ECT@ECT, "Mike Wood \(E-mail\)" <mwood@azurix.com>, "Cole Frates \(E-mail\)" <cfrates@azurix.com> 
Subject:	Pastoria backup water contract, Mike Wood and Cole Frates 

Last Friday ENA executed an agreement to sell the Pastoria power plant project to Calpine, which we should close in the very near future.  I am writing this memo to personally indicate that we could not have done that, especially when we did, without the assistance of Mike Wood and Cole Frates.

There has been conversation around ENA that:  "...had Azurix gotten the backup water deal done last year as per their contract, we would have been able to close with Calpine then."  That may be true.  But we all have had deals that have not gone the way we planned, good effort notwithstanding.  After working with Mike and Cole on this deal, I can personally attest to the extreme difficulty they had in dealing with their counterparty for that backup contract.

I want to give special credit to Mike and Cole for their professional and tenacious behavior these last couple of months.  Notwithstanding the turmoil at Azurix and Calpine's stated desire to terminate their contract as a condition of closing (and keep just the backup contract), Mike and Cole kept their eye on the ball.  And that ball was:  "what is best for Enron."  They continued to provide detailed, expert insight to the issues.  They continued to interface with the counterparty.  They attended every meeting.  They were there until we got the backup water deal done.

I am proud to have worked with them.  All of the members of my team on this deal have exactly the same thing to say about these two guys.