---------------------- Forwarded by Kay Mann/Corp/Enron on 12/08/2000 11:58 
AM ---------------------------
   
	
	
	From:  Rebecca Walker                           12/08/2000 11:56 AM
	

To: Ben Jacoby/HOU/ECT@ECT
cc: Kay Mann/Corp/Enron@Enron 

Subject: Coral Energy LLC

Ben

This is the letter that Bob Long from Coral Energy sent me.  I asked him if 
Shell would be a guarantor for Coral's debts, but he said that, no, Shell 
does not guarantee the debts, but instead provides the liquidity that Coral 
Energy needs in order to pay them.

Rebecca
---------------------- Forwarded by Rebecca Walker/NA/Enron on 12/08/2000 
11:51 AM ---------------------------


"Long, Bob" <BLong@coral-energy.com> on 12/08/2000 11:44:47 AM
To: "'Rebecca Walker (Enron)'" <rebecca.walker@enron.com>
cc: "Whaley, Don" <DWhaley@coral-energy.com>, "Seigler, Tom" 
<tseigler@coral-energy.com> 

Subject: Coral Energy LLC


As discussed Coral Energy LLC is 100% (direct/indirect) owned subsidiary of
Shell Oil Company ("Shell").  As in the ordinary course of business Shell
provides liquidity support to its wholly owned subsidiaries.

Given the short term nature of this obligation we would hope that you concur
that there is little risk in accepting this Guaranty from Coral Energy LLC.

Regards,


Robert E. Long
Vice President Corporate Finance & Treasurer
Coral Energy
909 Fannin Street, Suite 700
Houston, TX 77010
Tel. 713.767.5410
Fax 713.265.5410
Cel. 713.545.4179
blong@coral-energy.com