IN: Lisa, I'm the commercial person responsible for the sale of the Alberta PPA. I was looking for an update on where this issue is at. It is my understanding that we need to have the bankruptcy court bless ENA's shareholders resolution for the sale of the PPA. Have we applied to the court to hear this matter? What does the prospective timing look like? I'm assuming that you are the individual responsible for coordinating this effort. We are in a situation here where collateral demands ($23.7MM) have been made on Enron Canada Power Corp. which are due on Tuesday, December 18. ECPC does not have the capacity to post this collateral. It is my fear that the counterparty demanding the collateral will petition ECPC into court protection upon non-compliance with the collateral demand. Additionally, it is unclear how any court proceeding with Enron Canada Corp. may affect both ECPC and the PPA. It is my understanding that there may be some activity on this front early next week. Either one of these issues may cause a default under the PPA. At that point in time the Owner of the PPA is free to terminate. If the PPA is terminated, the value of this asset would go to zero. It is clear that the Owner of the PPA is itching to terminate and this would terminate the proposed sale to Altagas Services of $215 MM. Could you please get back to me with some guidance on this issue. ENRON CANADA CORP. Derek J. Davies Vice President

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OUT: Alberta PPA

IN: Jarrod: Attached is a "form" letter for you to send (with adjustments as indicated) or let me know and I will sign and send with the Vitol confirms. Separately, I have faxed to you the first page changes. Call if you have questions. Please be sure that we have included the additional reps. Sara

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OUT: Vitol weather confirms

IN: Pat, You should have been included on this. I probably won't go to these meetings since I won't be dealing with Unify much in the future. I don't mind going with you for the first couple of times if you need me to, though. D

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OUT: Recurring Logistics Unify Meeting

IN: As you are aware, NNG has reached a settlement with the shippers in the SLA proceeding. Part of the settlement provides that NNG and its shippers will work together in good faith to develop an imbalance resolution which includes a shipper option of in-kind balancing or cash out. Also, the working group would define the parameters around which NNG could buy or sell gas into or out of the operational storage account. Mary Kay has asked that Steve Kirk & myself co-chair this committee for NNG and that the two of you also be members of the committee on behalf of NNG. I assume you are OK with this assignment. We would like to get together and discuss our general approach to this effort. Steve and I think our initial meeting could be held in the Video Conference room. Could you let me know your availability to get together sometime next week for appr 1 -1/12 hours?

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OUT:
SLA Settlement