----- Forwarded by Richard B Sanders/HOU/ECT on 02/15/2001 01:43 PM -----

	John Enerson
	02/14/2001 04:37 PM
		 
		 To: Richard B Sanders/HOU/ECT@ECT
		 cc: 
		 Subject: Can Fibre Lackawanna Letter of Credit


---------------------- Forwarded by John Enerson/HOU/ECT on 02/14/2001 04:37 
PM ---------------------------


John Enerson
11/14/2000 02:24 PM
To: Randy Petersen/HOU/ECT@ECT, Richard Lydecker/Corp/Enron@Enron, Wayne 
Mays/PDX/ECT@ECT
cc:  
Subject: Can Fibre Lackawanna Letter of Credit

Attached is my first attempt to frame the applicable provisions regarding 
Enron's obligation to increase its Stabilization Fund letter of credit by 
$4.5 million on the Completion Date.  It appears that the major issues are 
(1) can they pass the Endurance Benchmark (24 day test) and (ii) that the 
estimated cost to complete the facility is in excess of amounts in the 
Interest Subaccount, Construction Fund, and Equity Contribution Account.  I 
am currently thinking that if it cost more than $4.5 million to complete the 
facility, senior lenders may not want to pursue completion in order to obtain 
our $4.5 million.