Louise,

Don and I spoke about this prior to the execution of the Highstar letter.  While we both feel that it is unlikely that we will be in "material negotiations" with a potential counterparty within the next 11 days (or so), we are prepared to notify AIG in the event that something comes very quickly.  Thanks.

Stuart






	Louise Kitchen 04/30/2001 10:29 AM 	   To: Don Miller/HOU/ECT, Stuart Zisman/HOU/ECT@ECT  cc:   Subject: Highstar Letter	


You guys will need a strategy as to notifying AIG of other material negotiations.
---------------------- Forwarded by Louise Kitchen/HOU/ECT on 04/30/2001 10:28 AM ---------------------------
From:	Heather Kroll/ENRON@enronXgate on 04/27/2001 05:05 PM
To:	Steve Van Hooser/HOU/ECT@ECT, "Clark Thompson (E-mail)" <cthompson@bracepatt.com>@SMTP@enronXgate, "Jay Sonnenberg (E-mail)" <jsonnenberg@bracepatt.com>@SMTP@enronXgate, Stuart Zisman/HOU/ECT@ECT
cc:	W David Duran/HOU/ECT@ECT, Louise Kitchen/HOU/ECT@ECT, Don Miller/ENRON@enronXgate 

Subject:	Highstar Letter

To all:

Attached below is the letter signed between ENA and Highstar.  In summary, we have acknowledged that we have been unable to finalize the existing transaction but are going to discuss a restructured deal.  ENA is free to begin marketing the plants to third parties, provided that we cannot enter into binding agreements before May 11, 2001.  Either party may terminate after May 11, 2001 for any reason or no reason.

Now on to final docs!

Regards,

Heather