-----Original Message-----
From:  Lundstrom, Bruce  
Sent: Monday, June 18, 2001 1:06 PM
To: Derrick Jr., James; Walls Jr., Rob; Haedicke, Mark E.
Cc: Rogers, Rex
Subject: Dabhol -- A Brief Legal Update

Gentlemen -

A few updates:

The power station and LNG contractors terminated their respective 
construction contracts over the weekend.

Rebecca McDonald and Ken Lay met with the India Minister of Finance on 
Saturday in New York.  The Minister reiterated India's position that they 
would not buy any power from Dabhol.

We had a conference call with management of GE and Bechtel last week.  There 
is little evident disagreement amongst the sponsors on key issues.  Bechtel 
even complimented Rebecca on her team and handling of the matter.  Walter 
Stuart from V&E came over to listen in on the phone call on behalf of Enron.  
Given the increasing cooperation of the sponsors and written statements of GE 
and Bechtel approving Enron's handling of ongoing issues, we have kept V&E's 
involvement fairly "low key" to date.

Bruce