Sara-

I have spoken with Mary Cook this morning and she has informed me that we will need to add some additional language into the netting agreements to be entered into with Morgan Stanley for the purposes of certain contemplated financings. 

I'll keep you informed as to our progress.

Thanks,

John

 -----Original Message-----
From: 	Shackleton, Sara  
Sent:	Tuesday, October 30, 2001 7:25 PM
To:	Aronowitz, Alan; Viverito, John; Moran, Tom; Williams, Jason R (Credit)
Cc:	Simons, Paul; Rohauer, Tanya
Subject:	Morgan Stanley Capital Group Inc. ("Morgan")

I spoke with Beth Ng (who is not a lawyer!).  Beth would like for Enron Gas Liquids Inc. and ERAC to sign the "mini-netting" agreements she has already negotiated with EEFT through Paul Simons.  Morgan does not need to execute this "mini-netting" agreement with ENA.  Morgan would be interested, however, in seeing the ENA form of Master Netting Agreement which they may also agree to sign.  But for the immediate future, the EEFT version is their primary goal.

ENA will execute an assignment with ELFI and Morgan to accept ELFI's positions in the four financial trades.

Hope this helps. 

Sara Shackleton
Enron Wholesale Services
1400 Smith Street, EB3801a
Houston, TX  77002
Ph:  (713) 853-5620
Fax: (713) 646-3490