Lisa:

ENA has received a second written request from a financial counterparty (Union Spring Fund Ltd.) for the return of $150,000 cash collateral plus interest.  The cash was posted as initial margin on trade date of the swaps.  We have confirmed that all trades were terminated as of mid-December, 2001.  The counterparty has not sent a "termination letter" as there was nothing to terminate, but has sent a letter requesting return of the collateral.

Although we may not want to return the cash, aren't we obligated to do so?

Sara Shackleton
Enron Wholesale Services
1400 Smith Street, EB3801a
Houston, TX  77002
Ph:  (713) 853-5620
Fax: (713) 646-3490