Here is the initial feedback from the Montana lawyers.  Looks like Lloyds is 
more interested settling with EOTT as part of a global buy out of all old 
InterNorth policies. I wouldn't place any stock whatsoever in the comment 
Lloyds' representative made about Studdert.  He has been very helpful and 
highly professional in all matters pertaining to this case.  EOTT and Enron 
might be able to negotiate some sort of settlement as part of a global buy 
out, but I don't know if Enron would even consider this.  Studdert might have 
the best feel for this.  Separately, the defendant group will get back to us 
on any offer they might be willing to make to settle just the Montana case, 
but it appears that their real interest would be in a "global" deal.  Any 
comments?  SWD
----- Forwarded by Steve Duffy/Houston/Eott on 06/06/2000 10:36 AM -----

	"Glenn Tremper" <gtremper@chjw.com>
	06/05/2000 05:39 PM
		 
		 To: "Jean Faure" <jfaure@chjw.com>
		 cc: Steve Duffy/Houston/Eott@Eott
		 Subject: EOTT: Call to McAndrews



I spoke with Jim McAndrews late this afternoon.  I told him EOTT was 
interested in following up on the possibility of settling the case, which he 
left open after the trial.

He said that, after trial, London concluded they wanted to, in essence, buy 
out all of Enron Corp's coverage and were not interested in settling the case 
on its own.  They corresponded with Jim Studdert a few times during the 
winter, but Jim responded in a way that John said was rude.

If we are interested in talking about a buy-out, London would be interested.  
I told him that would be very difficult for EOTT to arrange, as it is not the 
sole insured.  I asked if buying out just EOTT's coverage was a possibility.  
He pointed out that there is a strong connection between the two (Enron's 
listing in Martindell lists EOTT's attorneys, he claims) and thinks it could 
be done as one package.  In any event, London really wants to deal with all 
the coverage under the Internorth policies.

I told him I had heard about the buy-out campaign elsewhere and had forwarded 
material to Studdert on that issue.  I need to follow-up with Studdert and 
Duffy to figure out where Enron/EOTT is on this issue now.

I asked what number his people would be willing to pay just to settle the 
Ashland claim, in the likely event that there could be no buy-out.  He said 
he would need to talk with London about that.  I suspect it will be quite 
small.

We agreed that we would each speak with our people and get back in touch 
early next week.

I left a voice mail with Steve to this regard, but I'm copying him as well 
for his information.

CONFIDENTIALITY NOTICE:  This message is intended only for the use of the 
individual or entity to which it is addressed and may contain information 
that is privileged, confidential and exempt from disclosure under applicable 
law.  If  the reader of this message is not the intended recipient, you are 
hereby notified that dissemination, distribution or forwarding of this 
communication is strictly prohibited.  If you received this communication in 
error, please notify the sender immediately and delete this message from any 
device/media where the message is stored.  Thank you.