We are continuing to work with the Enron LNG team to set up risk books and 
capture the trading postions and P/L of their business.  At the present time 
we are focusing on the Elba Island transaction, however, the LNG team has 
requested information concerning an accrual book to accurately capture the 
risks associated with their LNG Vessel "Mystic Lady" as well as an additional 
vessel they are looking to acquire.

Eric Groves has built a curve generating model that will facilitate the risk 
books and/or any exotic option models that may be necessary.   As of Friday, 
we have not received the information needed to capture all of the FOB and 
Delivered Curves.  We have been in contact with Enron LNG and they will be 
forwarding this information.  We are expecting to sit down with the LNG 
commercial team late next week to obtain assumptions such as product sourcing 
locations and the timing of anticipated spot cargoes for delivery to Elba 
Island.

Once we receive the additional information for the curves and the sourcing 
assumptions, we will be in a position to sit down with the research group and 
determine the most appropriate means of valuing these transactions.  We are 
also working with the Europe Engineering group as a source of validating some 
of the information that we have received.  

Please let me know if you have any questions or would like to discuss further.

Regards,
Scott