John:

Fred Mitro and I just got off the phone with Duncan Croasdale at Enron Canada regarding the 11N1s. He indicated that, although nothing has been signed yet, that they are working on several leads. Steve Thome (he works for Calger) is also pursuing a lead on these units with Montana Power.

Duncan advised me and Fred that the units are on Canada's books for US$38 million, and the asking price is US$39.5 million.

I am happy to take these units on as you requested. Fred Mitro and Chris Booth in my group, who also worked on the successful LM6000 sales and pending GE7EA and SW501D5A sales, can be made available to work on a sale of these units. In my conversation with Duncan, however, he indicated his group wants us to instead help to provide customer leads which we would turn over to them. We can certainly do this as an alternative to taking the units on directly.

Please let me know how you would like us to proceed.

Regards,

Ben