Subject: "Environmental Activity Report-Roswell Area".

Body: The state of Texas conducted an air quality inspection of the NNG Seminole C/S. There were no deficiencies or violations identified at the facilit during the inspection. The State of New Mexico Air Quality Bureau conducted an inspection of the Transwestern Atoka No. 3 C/S. The Agency conducted a record review and did portable emissions testing of 3 of the 5 emissions units at the facility. Although fuel use and a natural gas analysis were not available for the units tested, emissions exceedances for NOx are expected for the 2 White Superiors at the facility. The State of New Mexico Air Quality Buureau conducted an inspection of the Transwestern Atoka No. 2 C/S. The agency conducted a portable emissions testing of the two turbines and one recip at the facility. Although fuel use and a natural gas analysis was not available at the facility, all units tested appeared to be in compliance with the permit limits. The agency requested sulfur readings from the fuel gas as required under Subpart GG NSPS for the last twelve months. The Artesia team has contacted Gas Control in Houston for the for the monthly sulfur values at the facility.

Subject: "more Edison/SDGE stuff".

Body: Rob, Look at the conforming languange in the Appendix "A" last page, last paragraph. You know that this language was negotiated by and between SoCalGas and Edison. My main concern is that its very, very open ended... almost a contingent liability for all settlement parties. Jeff

Subject: "Terminate Contracts".

Body: Joann, you may need to get with Chris Ordway on this. Please let me know if we are still using any of the contracts listed below. I don't think we are using them anymore.

Subject: "Heartland Steel---CSN".

Body:
Hey Guys, I do not feel that the Heartland Steel/CSN issue is resolved. We are now getting calls from a representative of CSN (Companhia Sidergica Nacional, LLC) saying that they have purchased Heartland Steel effective July, 2001. If this is the case, then why are we continuing to invoice Heartland Steel? Have we been paid by Heartland Steel? Have we been continuing to receive the prepayments, and if so from whom? Has CSN assumed the contractual obligations of Heartland Steel? While the credit risk is not my responsibility, I am, however, extremely concerned that we really do not have a firm handle on the identity of our actual counterparty. Will you please let me know how we should proceed. I have a call into the CSN representative and it appears that they are not really happy with us, and would like to receive a visit from an Enron representative. Let me know what the game plan is by noon, Friday, September 28, 2001. Thank you for your cooperation.