Problem: BODY: Payment Schedule. Payment Date Payment Amount April 30, 2001 $50,234,000 TOTAL $50,234,000 Such April 30th payment shall constitute full and final payment for the Units, except that Purchaser shall be responsible for the payment of any and all amounts associated with any Change Order after the Effective Date. The final payment is also subject to Section 6.1.3. Also, Delta has suggested that we add in language for the adjustment due to site conditions. I added language to Exhibit A-1. Both of these edits are from the CA form. Kay
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A: SUBJECT: revised payment language for Salmon

Problem: BODY: Ken: Pete van de Gohm and I attended the NPC meeting in Washington on June 6 where the final draft Critical Infrastructure Protection (CIP) subcommittee document was presented to the Secretary of Energy and the NPC membership. The draft document was accepted and the final document is being prepared. At your request, we are pleased to continue working with Archie Dunham and the NPC subcommittee to attack the next phase of the project, the development and implementation of an Information Sharing and Analysis Center, or ISAC. The ISAC will be the tool in providing threat information to the industry and is the main focus of the CIP project. This next phase may require the involvement of an Enron attorney and a business lead as the ISAC will likely take the form of an LLC or similarly structured entity. We will address these as the need arises with Jim Derrick and Steve Kean. We feel we have made a great contribution to the energy industry by moving this project forward, and we are eagerly looking forward to our continued involvement. Regards,
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A: SUBJECT: Summary of NPC Meeting, Washington, D.C.

Problem: BODY: just talked to marcello castilho, the head of petrobras office in london. he gave me the following: their crude production is down by 900mbd. they have crude and product stocks for the next 5 days, but then will need to buy. initially the thought wud b to buy crude however, the situation may have worsened at the refineries. he was pessimistic about the discussions. said that petrobras called them to a meeting ydy as everyone knows and only upped the ante by 1pct on their side vs the 8.5 sought plus the inflation catch-up of 42pct. this really angered the unions and they have now said they will not come back to the table before seeing the numbers next time. he said petrobras is up against internal competition now from other oil and gas companies who are offering ex petrobras workers a 15pct increase over their current pay, so petrobras is in a poor position. so far the refs have been running at very low rates and the managers have not allowed the workers to leave the prmeises but have bunked them and fed them their in 12 hour shifts. by law they can only do this for 3 days and some fighting has already broken out at one location, so doubtful they can continue the 'imprisonment' much longer. if it comes to a bigger showdown he thinks the unions will just shut the refs down on the last shift that they work, and he will be buying product not crude.
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A:
SUBJECT: petrobras update