Need to get you 2 talking to LORI,    I don't see much of a problem in going along with the EOTT valuation.   It's their asset now.

-----Original Message-----
From: Saunders, James 
Sent: Monday, October 29, 2001 7:11 AM
To: Hayslett, Rod; Meers, Thomas; Meers, Thomas
Subject: FW: EOTT/EGP Fuels SEC Data Responses


Rod, Tom, 
Roger's question/concern is serious, and the approach I've seen in documentation
does not help our position

We are proposing (or are) to argue that Fair Value is substantially less than $41.9mm.
If that is the case, we will have to go back and impair the MTBE facility, and re-do the
financials. We have asserted that the fair value for book purposes approximates a higher value than our tac position. Normally this variance is no big deal, but because of the "sale", this book tax variation is problematic. This will result in a substantial loss, and cause EOTT's SEC filings to be in jeopardy.


-----Original Message-----
From: roger.d.willard@us.andersen.com
[mailto:roger.d.willard@us.andersen.com]
Sent: Friday, October 26, 2001 7:26 PM
To: Saunders, James
Cc: Hayslett, Rod; Butts, Bob; Farmer, Stanley; Meers, Thomas; Meers,
Thomas; stephen.p.huzar@us.andersen.com; Jolibois, Anne; Rogers, Rex;
Saunders, James; Maddox, Lori
Subject: Re: EOTT/EGP Fuels SEC Data Responses



Is Enron disputing the fair value of $41.9 million already disclosed as
agreed to with HCAD?  And if so what value is the company asserting?


To:   Rod.Hayslett@enron.com, Bob.Butts@enron.com,
      Stanley.Farmer@enron.com, Thomas.Meers@enron.com,
      Thomas.Meers2@enron.com, Stephen P. Huzar@ANDERSEN WO,
      Anne.Jolibois@enron.com, Roger D. Willard@ANDERSEN WO,
      Rex.Rogers@enron.com, James.Saunders@enron.com, Lori.Maddox@enron.com
cc:
Date: 10/26/2001 06:07 PM
From: James.Saunders@enron.com
Subject:  EOTT/EGP Fuels SEC Data Responses


Attached is a red line version and "clean" version of proposed EGP Fuels
responses to the EOTT SEC request.

Bob - I assume you will also review this w Mr Causey
Tom - Item # 18 on affiliated revenues requires additional data, that I
believe you have on file.
All - Item #17 on Morgan's Point tax valuation should be reviewed
closely.


>
>
>
>  <<SEC Data Responses.doc>>       <<SEC Data Responses Redline.doc>>
>
>


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(See attached file: SEC Data Responses.doc)
(See attached file: SEC Data Responses Redline.doc)







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