----- Forwarded by Stephanie Harris/Corp/Enron on 12/13/2000 01:43 PM -----

	John.Schwartzenburg@enron.com
	12/13/2000 01:22 PM
		 
		 To: Stephanie.Harris@enron.com
		 cc: vsharp@enron.com
		 Subject: EECC Litigation Update - Puerto Rico, Marmara, Dabhol


I would like to update the legal report I just sent to you as follows:

   Puerto Rico:  Larry Izzo had a conference call with Misson Energy
   regarding the claims between EECC and EcoElectrica. Enron's shareholder
   representative was also involved.  The parties reached agreement in
   principle on the open issues (the owner dropped its claims against EECC,
   EECC relinquished two smaller claims, the Owner will pay EECC's
   remaining claims).  Bracewell's analysis of the claims was very helpful
   in reaching this result.
   Marmara: As expected, Black&Veatch has filed a formal notice of
   arbitration against EECC relative to sums they claim are due them with
   respect to the Marmara Project. EECC management expects that this will
   be settled early next year, and that it may provide an opportunity to
   reach a global settlement with Black & Veatch re Puerto Rico and
   potential future work.  Gail Brownfeld and Scott Burdine of Hagans, Bob,
   Burdine are both up to speed.
   Dabhol: Besix has informed us that we will be receiving thier notice of
   arbitration re the Dabhol Quarry before the end of the year. We are told
   that they have changed their counsel, apparently releasing the English
   firm of Masons and engaging a firm in Washington DC of Watts, Tieder,
   Hoffer & Fitzgerald to carry the claim forward. This is an unusual move,
   since the contract is governed by English law and the site of the
   arbitration will London. Besix's local representative told  our project
   manager that Besix was not happy with the Masons advice, but it may be
   that they want a US firm involved, backed up by an English firm. I have
   asked Phil Bruns to check into the reputation of  Watts, Teider. He was
   not familiar with them, but has found that it is a 67 lawyer firm that
   specializes in construction and real with a main office in northern
   Virginia and offices in California. Gail Brownfeld, Phil Bruns, and
   Jonathon Rosshandler are all aware of this development.

JWVS