-----Original Message-----
From: Mark Ellenberg [mailto:Mark.Ellenberg@cwt.com]
Sent: Wednesday, March 20, 2002 9:35 AM
To: melanie.gray@weil.com
Cc: Mann, Kay; McMichael Jr., Ed; Concannon, Ruth
Subject: columbia gas


columbia  has been holding enron gas hostage since december.  it refused to
honor enron requests to release the gas, asserting a freeze while
recoupment and setoff rights were figured out.  this caused enron to lose a
sale of the gas that had been arranged at a time when the market was
favorable.  subsequently, columbia unilaterally effected a recoupment and
filed a motion for setoff.  columbia was holding the gas as bailee, just
like sng, and , thus, the sng ruling effectively blew them out of the
water.  their response was to withdraw the old motion, set for hearing
today, and file a new motion.  the new motion tries to get around the sng
ruling by arguing that title to the gas passed to columbia when the
agreements expired in december and january.  of course, the only reason the
gas was still there is that they refused to let it out.  i would consider
requesting rule 9011 sanctions on this one, but want to make sure that is
consistent with the "gestalt" of the case before doing it.  let me know
what you think.

Mark C. Ellenberg
Cadwalader, Wickersham & Taft
1201 F Street, NW
Washington, DC  20004
202.862.2234


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==============================================================================
NOTE:  The information in this email is confidential and may be legally privileged.  If you are not the intended recipient, you must not read, use or disseminate the information.  Although this email and any attachments are believed to be free of any virus or other defect 
that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by Cadwalader, Wickersham
& Taft for any loss or damage arising in any way from its use.


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