Agreed.     By the way we are very close to a deal and therefore a press release shortly thereafter.

 -----Original Message-----
From: 	Horton, Stanley  
Sent:	Wednesday, October 31, 2001 7:47 AM
To:	Hayslett, Rod
Subject:	RE: Producers requesting L/Cs

I am not very comfortable with that at all.  I think with the filing of the proxy that we would have a disclosure issue..  It could also call into question whether or not Enron plans to perform under the MTBE deal. I do not think we need a letter though.  A letter agreement already exists between the two companies.  Another alternative would be for EOTT to go get there own LC,s and have Enron pick-up the cost.  That would keep EOTT's unitholders indifferent.

 -----Original Message-----
From: 	Hayslett, Rod  
Sent:	Tuesday, October 30, 2001 5:31 PM
To:	Horton, Stanley
Subject:	FW: Producers requesting L/Cs


I have told Lawrence that if it is necessary we can get a letter affirming the deal.    However, how comfortable might you be in telling them to do business differently to avoid calling on the LC's.     Not suggesting we should just thinking we should probably be prepared if asked.
 -----Original Message-----
From: 	Clayton, Lawrence  
Sent:	Tuesday, October 30, 2001 5:17 PM
To:	Hayslett, Rod
Subject:	RE: Producers requesting L/Cs

Based upon our conversation, I agree that we s/not need to have any immediate disclosure over Enron's ability to perform - OK, Main Issue Done! 

However, I do feel that we should address/consider, before issuing the 10-Q, whether we need a written confirmation from Enron of their intention to meet EOTT's LC needs estimated to be in a range of $200-$400mm.




	Lawrence Clayton 10/30/2001 02:19 PM 	  To: Rod Hayslett/ENRON@enronXgate@ENRON  cc:   Subject: RE: Producers requesting L/Cs << OLE Object: StdOleLink >> 	


Do you think we need for Enron to acknowledge, in writing, their ability and/or intention to perform under our facility?




	Rod Hayslett/ENRON@enronXgate 10/30/2001 02:02 PM 	   To: Lawrence Clayton/Houston/Eott@Eott  cc: Mary Perkins/ENRON@enronXgate  Subject: RE: Producers requesting L/Cs	


Looks like there may have been a little confusion here, but it appears that the deal is still working as before. 

 -----Original Message-----
From: 	Clayton, Lawrence  
Sent:	Tuesday, October 30, 2001 1:53 PM
To:	Hayslett, Rod
Subject:	Producers requesting L/Cs

Rod, I am very concerned about the statement that Enron cannot get any added LCs' issued.  This may be a disclosue event for us.  I think we need this retracted and for Enron to affirm there ability to perform under our facility.  Your thoughts?
----- Forwarded by Lawrence Clayton/Houston/Eott on 10/30/2001 01:49 PM -----



	Josie Castrejana 10/30/2001 11:19 AM 	   To: Lawrence Clayton/Houston/Eott@Eott  cc:   Subject: Producers requesting L/Cs	



We have the following new requests for L/Cs to cover our lease purchases.  They are requesting L/Cs because of the Enron situation.  I've spoken with some of them and they just won't budge.  

1.  Newfield Exploration		$3MM   	to cover Oct & Nov
2.  J. Cleo Thompson		$1.8MM to cover Oct & Nov 
3.  Apache Corp.		$700K     to cover Nov
4.  W. C. Miller			$175K     to cover Nov 

I've already spoken to Jesse Mata at Enron and she is telling me she cannot get any L/Cs issued - their banks are not allowing it.   I've got a call into Jack Insigna at Standard Chartered to see if they would be willing to EOTT's L/Cs.  He's checking.  

We could prepay Apache - they are obviously not a credit risk.  the others i'm not sure about - we're checking their credit.  

let me know about how much you're willing to with Enron.  thanks.  jc