Blue Dog Change Order 1 rev 8 ,
 Please find attached a copy of the latest revision of Change Order 1 to the 
Blue Dog contract with GE.  The attached letter from Jeff Darst is now gone, 
but GE is insisting that warranty language be included to the Change Order.  
I've talked to Jeff Darst about removing the language and had his verbal 
agreement that some of the language could be removed, but just received 
written comments back from him today with not only the same warranty wording, 
but some additional warranty language in Part III.  These changes would be 
added to Section 14.1.2 Warranty Clarifications in the contract.

Please review this Change Order and let me know if we can live with these 
warranty provisions.  Otherwise, we will need to talk directly to Jeff's 
attorney and commercial people to get it resolved.  Please also provide me 
with any additional comments so that I may route this Change Order for 
execution.

Brian, is there an EECC attorney that needs to review this Change Order as 
well.  Please advise.

Thanks
Renee Alfaro
Phone: 713-646-7281
Fax: 713-646-6158
Email: ralfaro@enron.com
kay.mann@enron.com, brian.barto@enron.com