PPEP - Williams Gas Supply Issues ,
 I spoke with Rick Vicens at PPE about the gas scheduling problem we're runn=
ing into as a result of JP Morgan's delay in getting back to us on the L/C =
amendment/agreement (I have two calls into Rob Traband) as well as the new =
issue that we're currently investigating with respect to the Williams gas s=
upply invoice due in November.  In light of the fact that nominations are d=
ue tomorrow and it is unlikely that the L/C amendment/agreement will be com=
plete (let alone the L/C itself), Rick Vicens agrees that PPEP should prepa=
y April gas so as to buy time to get the L/C in place.  Mike/Joe, please wo=
rk together with Williams to determine the amount of the payment and coordi=
nate with Theresa/Karen to get the wire out.

With resepect to the Williams gas supply invoice due in November, Rick Vice=
ns agrees that if we do conclude that PPEP paid ENA and ENA did not forward=
 funds to Williams, PPEP will need to make the supplier whole (like it did =
Lone Star).  He'd like to hold off on making the payment until we have all =
of the facts, provided that this doesn't interfere with our ability to flow=
 gas to the plant as required.  Mike, you're in the best position to feel o=
ut Williams and advise us on this one.  Please try to get them to accept th=
e prepay as a good faith effort to resolve the outstanding requests until w=
e can finish investigating the payment history and lining up the L/C.  Let =
them know that if our investigation indicates that they've been shorted, th=
e project is committed to making them whole and has the cash to do so.  The=
resa/Karen, as you're setting up the wire on the April prepay please keep i=
n mind that if Williams pushes back, we may need to increase the amount of =
the wire to make them whole for the amount due in November.

Margaret, please include in your review amounts paid to ENA by PPEP (part o=
f the estimated payment shown in the spreadsheet you received yesterday) fo=
r supply costs incurred by PPEP under its agreement with Apache ($1,488,620=
).  We suspect that the fact pattern will be the same and wish to be prepar=
ed when the supplier starts to take us down that road.

Lisa, Chuck, Dan, Sylvia and John, this is being sent to you as an FYI.

Thanks,

RH


 -----Original Message-----
From: =09Hill, Garrick =20
Sent:=09Monday, March 25, 2002 4:22 PM
To:=09Mazowita, Mike; Herrmann, Karen
Cc:=09Dhont, Margaret
Subject:=09FW: Outstanding Williams Invoice

Check that, James paid $3,125,227.76 to ENA in November per the attached.
=20
I spoke w/Margaret Dhont in Settlements who will look further into the amou=
nt that came into vs. what was was paid out by ENA in November relating to =
the Cleburne facility.  She should be getting back to us tomorrow morning.

[Margaret, for your reference, the asset goes by Tensaka IV, Cornhusker, Cl=
eburne and Ponderosa Pine Energy internally.]

RH

 =20
 -----Original Message-----
From: =09Hill, Garrick =20
Sent:=09Monday, March 25, 2002 3:24 PM
To:=09Mazowita, Mike
Cc:=09Herrmann, Karen
Subject:=09RE: Outstanding Williams Invoice

James was making estimated payments each month for current month activity a=
nd the prior month's reconciliation to actual invoices.  To that end, he pa=
id $3,715,582.50 for November 2001, the month the amount shown below was du=
e, directly to ENA per the attached.  That's the same month the $108,405 Lo=
ne Star Invoice was due, which we know he had to remit to Lone Star after t=
he bankruptcy (effectively "double paying" the invoice).  Since this didn't=
 come up before he left, I think we can be reasonably certain that he didn'=
t pay the amount shown to Williams.  The question is did Enron remit the pa=
yment to Williams?  Like you, I'm afraid to get the answer.  Is there a way=
 to determine if we have a similar problem on Apache???

 << File: Plant-ENA Gas Recon.xls >>=20

 -----Original Message-----
From: =09Mazowita, Mike =20
Sent:=09Monday, March 25, 2002 3:04 PM
To:=09Hill, Garrick
Subject:=09FW: Outstanding Williams Invoice

I think I found another unpaid invoice. Trey Skelton called me and said acc=
ording to their records, this invoice has not been paid. This is not good. =
Theresa Vos is out today and Karen Herrmann is diligently looking to see if=
 this was paid directly to Enron. Like it would matter anyway...

Maz

 -----Original Message-----
From: =09Herrmann, Karen =20
Sent:=09Monday, March 25, 2002 11:35 AM
To:=09Mazowita, Mike; Vos, Theresa
Subject:=09RE: Outstanding Williams Invoice

I've scoured the bank statements for Tenaska and Ponderosa Pine and don't s=
ee where this amount was ever paid.  We do have the invoice, though.


 -----Original Message-----
From: =09Mazowita, Mike =20
Sent:=09Monday, March 25, 2002 10:44 AM
To:=09Vos, Theresa; Herrmann, Karen
Subject:=09Outstanding Williams Invoice

Theresa or Karen:

Can you look into this invoice for Williams:

=09Williams Energy
=09Gas for Ponderosa Pine Energy
=09$2,226,962.50
=09Due Date:=09November 26, 2001
=09October 2001 - Gas Deliveries?

A FED ID number is really what I'm looking for.

Thanks,

Mike
mike.mazowita@enron.com, joe.parks@enron.com, theresa.vos@enron.com, 