Jim/Don,

Do you know anything about this for Ecogas?

Michelle Cash

----- Forwarded by Michelle Cash/HOU/ECT on 06/09/2000 09:13 AM -----

	Randal Maffett
	06/08/2000 06:44 PM
		 
		 To: Michelle Cash/HOU/ECT@ECT, Dan Lyons/HOU/ECT@ECT, rstephens@bracepatt.com
		 cc: 
		 Subject: RE: D&O Insurance

FYI - see Jerrel's response to my query below.  This is the first I've ever 
seen or heard that this was a "condition to closing."  
Dan/Rob - is this true?  

To me the cost is irrelevant since Jerrel is the only Director affected and 
because of his actions (and/or lack thereof) the company can't afford to 
cover him.  
---------------------- Forwarded by Randal Maffett/HOU/ECT on 06/08/2000 
06:38 PM ---------------------------


Jerrel Branson <jerrel@ecogas.com> on 06/08/2000 05:16:24 PM
To: "'Randal.Maffett@enron.com '" <Randal.Maffett@enron.com>
cc:  
Subject: RE: D&O Insurance



Answering backwards - D&O insurance is exceedingly expensive for small firms
to secure, thus most do without it.  Second, it was a condition when we
closed and McConville/Lambert, et al researched it through Enron Risk
Management, Don Marshall, and stated that it was in place automatically for
any majority owned merchant investment.  A confirmation letter was promised
on 14 July and when pressed in September Lambert finally got around to
issuing the letter to Carl and me that I mentioned earlier.

Jerrel
-----Original Message-----
From: Randal.Maffett@enron.com
To: jerrel@ecogas.com
Sent: 6/8/00 4:42 PM
Subject: Re: D&O Insurance


I'm not very experienced in these matters so I'm checking with the folks
here.  Can you explain why Enron should cover non-Enron directors?  Why
doesn't Ecogas have its own insurance?  Any help you can provide is
appreciated.