Although it is always a moving target when you try to interpret Randy's 
e-mails, when he says "more realistic" numbers, I think he is talking to you. 
I thought I heard that 1) Sterling's case was weak and 2) she has hired a 
more reasonable atty.
----- Forwarded by Richard B Sanders/HOU/ECT on 11/09/2000 07:56 AM -----

	Randal Maffett
	11/08/2000 04:21 PM
		 
		 To: Lisa Mellencamp/HOU/ECT@ECT, Michelle Cash/HOU/ECT@ECT, Richard B 
Sanders/HOU/ECT@ECT
		 cc: rstephens@bracepatt.com, ddaniels@bracepatt.com, kelly@ecogas.com, 
kmahmoud@austin.rr.com, kelly.mahmoud@enron.com
		 Subject: Litigation Reserves

As you know there are a couple of pending litigation issues outstanding 
(Waste Management, Lyon Credit/Hudson United Bank and Victoria Sterling).  
Per conversations w/ Richard Sanders he suggests setting aside $25K each for 
WMI and Lyon Credit.  Michelle suggested $250-300K for Sterling.

Based on our cash available and expense projections these reserves bankrupted 
us about two weeks ago!  I need further guidance on more realistic numbers.  
We don't have much room to work here and every dollar is precious to keep the 
lights on while we try and get this sale done.