Hi Laine,
 I am going to set up a conference call for you, Christaan, John Novak, our 
outside counsel John Gardiner and me to discuss the force majeure 
investigation and the process to follow to assure that any record created 
supports our litigation strategy and position, and that we keep 
communications about the investigation privileged.  Are you and Christaan 
available Monday or Tuesday?  A half hour should be plenty.
Hope you are both doing well.
Kind regards,
Michelle
---------------------- Forwarded by Michelle Blaine/ENRON_DEVELOPMENT on 
02/09/2001 04:59 PM ---------------------------


Michelle Blaine
02/08/2001 06:38 PM
To: Richard A Lammers/SA/Enron@Enron, Laine.A.Powell@enron.com, John 
Novak/SA/Enron@Enron, Jose Bestard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, 
Felipe Ospina/NA/Enron@ENRON, Christiaan 
Huizer/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rafael Rangel/NA/Enron@Enron, Rob 
G Gay/NA/Enron@Enron, Federico Cerisoli/SA/Enron@Enron, Eddy 
Daniels/NA/Enron@Enron, Gabriela Aguilar/SA/Enron@Enron, Mariella 
Mahan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Peter E Weidler/NA/Enron@Enron, 
Gabriela Aguilar/SA/Enron@Enron
cc: Bruce Lundstrom/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Richard B 
Sanders@ECT 

Subject: Furnas Litigation Arbitration/Strictly Privileged and 
Confidential/Attorney Work Product/Attorney Client Communication

This is a very BASIC outline of the litigation/arbitration strategy with no 
detail and the budget numbers are ballpark, subject to revision as we 
determine which strategy to take.  If anyone needs something more detailed I 
am happy to create that.  Keep in mind this is privileged material that 
should not be shared outside the control group unless it is outside counsel.  
If privileged material gets outside the group, the privilege is waived.  From 
now on, please tag all emails, reports, memos, agendas or written 
communications of any kind discussing any of the issues regarding the 
consent, termination, force majeure, damages or anything relevant to the 
issues that may be litigated or arbitrated with the notation 
"CONFIDENTIAL/ATTORNEY CLIENT PRIVILEGED COMMUNICATION" and copy John Novak 
or me on it so we can attempt to keep it privileged.  

Laine, this is especially true with respect to the force majeure 
investigation.  All communications/reports of any kind about this 
investigation are to be done at the direction of counsel, in anticipation of 
litigation to keep them privileged. This prevents us from having to produce 
any results of the investigation to Furnas in the event of arbitration unless 
we want to.  Therefore, please copy John Novak & me on all communications 
regarding the investigation and direct any reports about the investigation to 
me with the notation, "Prepared at the direction of counsel in anticipation 
of litigation. DO NOT PRODUCE IN DISCOVERY."  If we need to hire any outside 
consultants for this, I need to prepare a tasking letter for them so that any 
reports or records they produce will be privileged, because it is being done 
at the direction of counsel in anticipation of litigation.  If we fail to do 
this, anything they say or write is fair game for the other side.  I'll give 
you a call about this.

Everyone, think before you write things down and be especially careful with 
email.  Remember you may have to produce notes, emails etc at some point.  
Please call me if you have any questions or if I can assist any of you.  
713-345-6159.
Kindest regards,
Michelle Blaine