Please see the information below received from the broker.  As I indicated 
from the very beginning, this possibility has always existed.  When received, 
I will distribute a copy of the surveyor's report to whomever needs a copy.  
Please advise if you need a copy.
---------------------- Forwarded by James P Studdert/HOU/ECT on 03/29/2001 
07:27 AM ---------------------------


"Ted Rosen" <trosen@jwortham.com> on 03/28/2001 05:07:50 PM
To: <James.P.Studdert@enron.com>
cc:  
Subject: Damage to SWPC Generator shipped per INDUSTRIAL BRIDGE


Jim:

I spoke to Sharron West this afternoon and she had just gotten in a 
preliminary report from the surveyor.  Sharron is going to send us an 
official fax/letter in the next few days.  In the meantime, from my 
discussion with Sharron, I understand that the surveyor is of the opinion 
that the generator is not a total loss and is repairable.  He also believes 
that the initial damage to the generator has been aggravated by the delay in 
repairing the generator.

Jim, as you well know, an insured under any ocean cargo policy is required to 
act as a prudent uninsured would act.  With this concept in mind, and with 
the surveyor believing that the generator is repairable, Sharron has 
suggested that Enron should obtain a written estimate for repairs as soon as 
possible.

Again, we should have something from the adjuster in writing within the next 
few days.  In the meantime, please let me know if you have any questions.

Regards,

Ted Rosen