----- Forwarded by Richard B Sanders/HOU/ECT on 01/09/2001 09:48 AM -----

	Bonnie White@ENRON
	01/05/2001 10:14 AM
		 
		 To: Richard B Sanders/HOU/ECT@ECT
		 cc: 
		 Subject: Faye B. Anderson, et al. vs. EGLI (ENA)


----- Forwarded by Bonnie White/Corp/Enron on 01/05/2001 10:13 AM -----

	Rob Cole@ECT
	01/05/2001 09:17 AM
		 
		 To: Bonnie White/Corp/Enron@ENRON
		 cc: Rob.Cole@enron.com, Tracy Carter/Corp/Enron@Enron, Eileen 
Kisluk/Corp/Enron@Enron
		 Subject: Faye B. Anderson, et al. vs. EGLI (ENA)

This will acknowledge receipt of the above.  This will be handled as an 
insurance-related matter, subject to any objections by our reinsurer, to 
which we would not anticipate.  The allegations give rise to a "products" 
claim, and as such, pollution related exclusionary language would not be 
applicable.  Thus, we will defend the entire lawsuit, and indemnify with the 
exception of any settlement/award for damages associated with the count of 
"FRAUDULENT CONCEALMENT" as such constitutes "intentional" conduct as opposed 
to an "accident".  I trust you will advise the operating company accordingly.

Eileen, please advise as to who you suggest we retain in this matter.  
Perhaps other firms have been retained by the other defendants to which we 
could share in a cost-sharing agreement.  Additionally, it is critical for us 
to determine our involvement and any sale dates of product given that the 
lawsuit is silent as to the time period involved here. The involved time 
period will have an impact on how claim payments will be allocated.

Thanks,

Rob