Hi Pat,

Just a note to recap our recent and ongoing discussions regarding the disposition of the Heartland Steel and CSN agreements:

At this point, Enron's Legal Department has requested documentation from CSN that substantiates the fact that CSN did purchase Heartland Steel.  I have contacted your legal counsel, Mr. Tarter, and obtained information that will hopefully satisfy Enron's request.  The next step for me is to meet with my legal staff on Monday, October 15, 2001 to determine the following:

1) Is the relationship between Heartland Steel and Enron completely severed?

2) Do we come up with a brand new pricing and deal structure with CSN, or does the existing structure with Heartland Steel remain in place?

Once, these determinations have been made, we'll follow up with the necessary legal documents.

I'm hoping to have resolution to these entire process by early next week.

Talk to you then.


P.S. As a notional indicator, November, 2001 pricing for Chicago city gate delivered volume (which is comparable to your location) would be estimated at NYMEX (currently $2.41) plus approximately $0.10.

Please keep in mind that the NYMEX price changes on a second-by-second basis, and this will impact your price.