If EGLI is sued, this will be our case. I have been involved because we knew 
this extortion was coming one day. I would recommend that we not settle. This 
is a message case for me. We need to send a message to all plaintiff's attys 
that Enron doesn't settle simply to avoid the cost of litigation. With the 
Litigation Unit defending this case, our cost will be below $30,000. Let me 
know what you think. 
---------------------- Forwarded by Richard B Sanders/HOU/ECT on 07/07/99 
04:17 PM ---------------------------


Eileen Kisluk@ENRON
07/07/99 03:52 PM
To: Philip Crowley/ET&S/Enron@Enron, Richard B Sanders/HOU/ECT@ECT, Bonnie 
White/Corp/Enron@Enron, Louis Soldano/ET&S/Enron@Enron, James P 
Studdert/HOU/ECT@ECT
cc:  
Subject: Frazier

On July 2, 1999 I sent counsel for the Plaintiffs a letter wherein I again 
urged them to dismiss Enron Products Pipeline from the captioned litigation.  
I received a telephone call this afternoon from David Carlile.  Mr. Carlile 
advised that he will dismiss EPP from this litigation.  Mr. Carlile then 
advised that Enron Gas Liquids, Inc. sold a large quantity of propane to the 
facility and in the event that a settlement was not reached he would bring 
EGLI into the litigation. As the conversation went along, Mr. Carlile stated 
that propane is not his target defendant and that he would settle with us for 
$50.00 per plaintiff.  He then said that his bottom line is $30,000 which is 
the lowest sum he has taken from any of the settling parties. I advised David 
that I would relay the conversation to my clients and would get back with him 
in due course.

In the interim, David is going to send me a letter along with a Non-Suit as 
to EPP.

I would appreciate your thoughts on whether we should accept the settlement 
offer.

- - EWK