Greg,

I know that you have more challeging issues than Mariner to consume your
time; however, I wanted to advise you that I believe that we have at least
made some short term gains at the company.  

First, we have reduced the workforce by about 20%.  I will know before year
end if further reductions are needed.

Second, we have sold 100% of Mariner's interest in Aconcagua for $51
million.  Originally, Mariner intended to sell 50% of its interest.
Expectations were $35-$40 million (100%).  Allan brought in the buyer
-Nippon.

Third, we participated in a new Shelf prospect (Roaring Fork) that appears
to have discovered 6-8 million barrels of oil. Mariner has a 20% interest.
Allan brought in this opportunity also.

Fourth, we have the Basin Exploration team under contract; however, we
potentially lose them if they do not become employees by year end.  We have
received kudos from Industry for getting them under contract.

We are working on the termination of the Overriding Royalty Interest program
for Management.  Also, the 2002 budget is being developed and a new strategy
for Mariner is ready for recommendation.

All of the above has been discussed with Lavorato.  He has been very
supportive of our efforts.  Naturally, we are wondering how the events at
Enron could affect the future activities of Mariner but we are managing the
business irrespective of the Enron situation.  

I was pleased to learn that you will be in the top management of Dynegy;
however, I would much prefer that you were at the top of Enron.

Regards,
Scott Josey