Kevin,

Thanks for the update on Pacer.  Just like Southern Trails, I'd like to see bible on Pacer.  Basically, I'm interested in getting our thoughts together in a @DASH@-like format - - - this is a good outline for thinking through complex deals.  Headline topics are-

Transaction description
Rationale
Valuation
Risks
Risk mitigants

At this stage, I don't need an exhaustive analysis - - - we just need enough information to progress further discussions with BP.  As ever, we will need inputs from legal, finance, tax, accounting, ops, and regulatory.  On the presumption that we want to move forward with further discussions, please have Chuck fix an appointment with BP asap.  Julie has my calendar but I will be available 16-23 May


From:	Kevin Hyatt/ENRON@enronxgate on 05/10/2001 05:05 PM CDT
To:	Eric Gadd/ET&S/Enron@Enron
cc:	 

Subject:	Pacer Pipeline

 I traded voicemail with LD today.  He has forwarded all his file info to Chuck Wilkinson, who I know from our old NGL days.  Chuck is working with Roger Westfall (sp?).  We talked at length about Pacer as well as the BP line in Calif (the earthquake damaged one).  Chuck is sending me the files and we have scheduled an internal conference call for next Wed.

kh