Hi folks,

I have been getting calls from both Engage US credit and Engage Canada credit 
regarding the guaranty's we have in place and what they want in place.  I 
have also been working on getting the ISDA's and Master Physicals in place.  
I want to see if we can get some resolution on these issues.  Below is a list 
of the entities Enron is trading out of and with which Engage entity.  Can we 
please work to get the contracts and guaranty's in place.  Let me know how I 
can move forward with my Engage contacts.

Enron Entity                Engage Entity                   Contract 
Type/Collateral Amnt.                Engage Guarantor/Amnt
ENA   Engage US   ISDA   $20MM      Coastal $20MM
ENA   Engage US   Master Firm Purchase Sale $10MM  Coastal $10MM
ECC   Engage Canada  ISDA   $10MM     Westcoast Gas $10MM**
ECC   Engage Canada  Master Firm Purchase Sale $15MM  Westcoast Gas $15MM**

**With respect to the Westcoast Gas Guaranty, I am prepared to accept a total 
amount of $25MM covering both guaranty's and both products.  I know a 
guaranty from Westcoast has been received for review by Mary Cook covering 
financial transactions, although now this guaranty or a separate guaranty 
should be received tied to the Master Physical between ECC/Engage Canada for 
an additional $15MM.

Also, with respect to the Coastal guaranty between ENA and Engage US, I feel 
we should get and give two separate guaranty's for financial and physical.  I 
have discussed this with Debra Perlingiere as it relates to the Master 
Physical.

The guaranty issues seem to be the largest issues.  Can I get an update from 
each person involved with one of the above contracts to let me know where we 
stand on these issues.  

Regards,
Russell