Chris Kennedy from Patina has indicated that their lawyers are sending back 
to Kern a red-lined version of the Assignment Agreement.  The issue of 
concern is "liabilities and obligations under the Transportation Agreement 
which arose on or prior to the effective date".  The agreement reads that 
Patina is responsible for these liabilities and they are seeking a change to 
reflect Enron as the responsible party for all obligations, before and after 
the assignment.

Julie Gomez indicated that we sought a similar change to the agreement a 
couple of days ago, which Kern balked at, saying that such a change would 
take a week or so to affect.

Patina will be copying me on the red-lined agreement, which I will pass on 
the both of you.
 

Tyrell Harrison
303 575 6478