Please note the negative development below on Cornhusker/Miracle.

-----Original Message-----
From: Ward, Charles 
Sent: Tuesday, September 18, 2001 8:12 AM
To: Henry, Joseph
Cc: Hill, Garrick; Zisman, Stuart; Duran, W. David; Mazowita, Mike;
Landry, Chad; Schneider, Chip; Sherman, Cris; Edison, Andrew; Miller,
Don (Asset Mktg)
Subject: Re: Miracle Status?


El Paso BOD killed due to capital sourcing uncertainty.  They have asked for an option until the midle of Feb.  Makes sense to evaluate versus an auction.  In the meantime we do need to send a call notice for their LP interest on Monday.

I believe that an auction will likely result in more litigation from Brazos but that might be a risk we are willing to take.  Don Miller noted yesterday that auctions (which were already seeing price deterioration) will possibly evolve to include financing outs.  All depends upon the speed of a recovery in the debt markets.

Chad-Please take the Cornhusker model we sent El paso and see what the NPV is on a roll forward basis.  We need to see whether we have any value issues by giving el paso a call (ie does the npv accrete as we roll forward).

Duran is set to discuss with el paso today and we will make any go forward decisions after.

Chuck
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