---------------------- Forwarded by Richard B Sanders/HOU/ECT on 11/29/99 
11:47 AM ---------------------------
   
	Enron North America Corp.
	
	From:  Bonnie White @ ENRON                           11/29/99 11:34 AM
	

To: Richard B Sanders/HOU/ECT@ECT
cc:  
Subject: Furlow Services, Inc. v. Ecogas Corp.

As we discussed.


---------------------- Forwarded by Bonnie White/Corp/Enron on 11/29/99 11:34 
AM ---------------------------


Miles Cohn <mcohn@hou-law.com> on 11/23/99 10:52:07 AM
To: Britt Davis/Corp/Enron@ENRON, Bonnie White/Corp/Enron@ENRON
cc:  

Subject: Furlow Services, Inc. v. Ecogas Corp.



Britt and Bonnie:

As I discussed with Britt this morning, I represent Furlow Services, Inc., 
which is owed substantial sums under two general construction contracts with 
Ecogas Corp., one in Dallas (the McCommas Landfill) and the other in San 
Antonio (Nelson Gardens Landfill).  (There are two "Ecogas Corp."s, one a 
Texas corp. and one a Delaware corp. It appears that Furlow's contracts are 
with the Delaware corporation, but I have not been able to fully verify that.)

Tom Hall, the general cousel of Ecogas (512/347-1441), tells us, in general 
terms, that Ecogas has been acquired by Enron (ECT, I think) and that we will 
get paid when Enron puts up the money.  Mr. Hall has mentioned that his 
contact at Enron is John Lambert.  I called Mr. Lambert yesterday, but have 
not yet received a response. Mr. Hall also disputes our invoices, although we 
have not been able to get him to set out his disputes in any detail.

I have been corresponding with Mr. Hall, trying to get this worked out, since 
August of this year, and we are now at an impasse.  Furlow Services has filed 
mechanic's liens and desires to file suit.  I have prepared lawsuits for 
recovery of the Furlow accounts on the two projects and to foreclose its 
liens on those projects.

There are two reasons why I am contacting you before filing the lawsuits:

     1.  I need to verify what (if any) relationship there is between Ecogas 
and Enron.  Since I have represented other Enron subsidiaries, and would like 
to continue to do so, I will not file any lawsuit against Enron or any of its 
subsidiaries.  If we confirm that Ecogas really is an Enron subsidiary, 
whether direct or indirect, then I will obtain new counsel for Furlow 
Services on this dispute.

     2.  Since Enron regularly pays its bills, something doesn't seem right 
about this entire scenario if Enron has in fact acquired Ecogas.  If Enron 
does have responsibility for Ecogas' construction costs, perhaps this all can 
be worked out in a meeting rather than a lawsuit.  If I can facilitate 
working this out, and if both Furlow and Enron consent to my continuing to 
play a role in settlement discussions, I would continue to represent Furlow 
solely for purposes of settlement discussions.

     I sincerely appreciate your help on this matter.  I know it is hard to 
get anything done this week, and I will be leaving this afternoon for the 
Thanksgiving holiday.  No lawsuits will be filed this week, and I will follow 
up with you next week before taking any action.  In the meantime, thanks 
again and have a great holiday!