Jeff, my team believes that there should be a premium to book in the range we 
quoted to you; however, I appreciate your interest.  I would agree that we 
have spent enough time on this and it is time to move on.  

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 07/19/2000 
09:27 PM ---------------------------


Jeffrey Sherrick@ENRON
07/19/2000 02:03 PM
To: David W Delainey/HOU/ECT@ECT
cc:  
Subject: Re: C-Gas  

Dave,  I met with my team today and based on the data and information 
supplied by Steve, it is doubtful that the assets and on-going organization 
would command a current market value equivalent to book.  I am still willing 
to move the assets onto our balance sheet at book for the benefit of Enron, 
although if this was a third party bid, I would be surprised if we could pay 
this price.  Furthermore, due to your desire to maintain this discussion 
among the Houston teams only, I am assuming the PDP reserves are solid, no 
major enviornmental issues exit, legal problems are minimal and contracts are 
standard.  Let me know what you want to do. I think we have all spent enough 
time on this effort. 

On a side issue, are you aware that this is a JEDI I property?  My 
understanding is that Jedi I owns 100% of C-GAS and the Jedi I fund WILL be 
liquidated before the end of the year.  At what price will your unit pay to 
liquidate the fund?  

jeff 
      



David W Delainey@ECT
07/13/2000 08:12 PM
To: Jeffrey Sherrick/Corp/Enron@ENRON, Steve Pruett/Corp/Enron@Enron
cc:  

Subject: C-Gas

Steve, please call Jeff and go through in detail how we got to our valuation 
of approximately $39 M.  Please ensure that this is a reasonable facsimile of 
value that ENA would accreate over the short to medium term assuming your 
continued management.

Let me know where you end up.

Regards
Delainey