T&F Operating has sent ENA a "breach of contract" letter and is requesting to 
terminate the contract effective 4/1/2000.

Colleen, I will give you a copy of the letter that was faxed to John Singer.

CES did a buy/sale behind Penn Fuel on CGAS for 1 year starting Nov 1, 1999.  
T&F is the supplier and Glenn Gary was the market.   The market went away 
effective 4/1/2000 and ENA/EES has no other market behind this part of Penn 
Fuel's system.  We checked with the Penn Fuel asset management deal and 
according to Penn Fuel, they can't take it either.

T&F is looking for their payment for Jan, Feb, and Mar, and T&F will waive 
any and all "cover" cost that ENA would otherwise be liable for subsequent to 
April 1, 2000.

John Singer wants to make sure we address the hedges in the books - will this 
need to be included in the CES true-up?  Also, John wants to know if he 
should sign the letter?.  Colleen, I told John you would anwser that 
question.
Enron Emails
Enron Emails