Just FYI: This litigation assessment was requested to support an Enron 
guaranty for $16 million to back up a SECLP indemnity as part of a settlement 
agreement whereby Foster Wheeler and Raytheon agreed to replace the faulty 
boilers at the Puerto Plata plant, in exchange for certain releases from 
liability.  Foster Wheeler and Raytheon requested this guaranty because our 
SECLP partner, Don Smith, refused to sign the settlement agreement (not 
unusual conduct for Don).  This settlement was finally & successfully 
concluded last night after years of tedious and protracted negotiation.  We 
are pleased to finally have concluded this settlement because the boilers are 
currently being held together with paper clips and scotch tape.  Now, we no 
longer have to send Richard to the DR to hold them together with his brute 
strength which was my back up plan. Call me if you have any questions. 56159
Regards,
Michelle
---------------------- Forwarded by Michelle Blaine/ENRON_DEVELOPMENT on 
01/10/2001 02:49 PM ---------------------------
From: Rob Walls@ENRON on 01/10/2001 02:33 PM
To: Michelle Blaine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Chip Schneider/NA/Enron@Enron 

Subject: Re: Enron Guaranty  

Michelle -

Thanks for the email.  I think you should send a copy to Mark Haedicke and 
Bruce Lundstrom (and Richard Sanders?) since they are responsible for the 
DR..  



	Michelle Blaine@ENRON_DEVELOPMENT
	01/08/2001 02:12 PM
		 
		 To: Rob Walls/NA/Enron@Enron
		 cc: Chip Schneider/NA/Enron@Enron
		 Subject: Enron Guaranty

Rob,    This document is addressed to you and is the litigation group's 
analysis supporting the Enron guaranty in connection with the settlement 
agreement with Raytheon and Foster Wheeler.  Bob and I actually did the 
analysis and drafted this sometime ago and Chip Schneider needs this official 
memo today to finalize the guaranty process.  We have discussed this before 
and there is nothing you need to do unless you have a question. Call me if 
you do.
Regards,
Michelle