Spreadsheet: louise_kitchen__24115__cash_flow12_20
Sheet: Open issues

 | SUMMARY OF OPEN HPL ISSUES |  |  | CONFIDENTIAL – FOR INTERNAL USE ONLY
 | As of 10/08/01
 |  |  |  |  |  | Responsibility
 |  |  | Action Items | ENE Area | ENE Exposure | ENE | AEP
1. | TX General Land Office Prepay: Contract #96059967 |  | Respond to AEP's Final Working Capital Calculation in writing before 10/27/01 and make payment for negotiated amount of $264K- A Koehler letter | [NAME] | -264393 | [NAME] | [NAME] | Additional Exposure
2. | Cannon Interests Prepay:                            Contract #96059933 |  | Respond to AEP's Final Working Capital Calculation in writing before 10/27/01 and make payment for negotiated amount of $393K - A Koehler letter | [NAME] | -393750 | [NAME] | [NAME] | Additional Exposure
3. | Cannon Storage Hedge:  Contract #96059167 |  | AEP has agreed to take this issue off the table - A Koehler letter | [NAME] | 0 | [NAME], [NAME] | B. Reed | Additional Exposure
4. | [NAME]:   Contract #96019236 |  | [NAME] or deduct from the inventory refund the   Sale of the gas in place: 1,236,286 MMBtu’s * $3.275 = $2,936,179.25 based on 9/7/01 Gas Daily  (our balance on balance sheet is $3,625,261) +  AEP proration of ad valorem tax ($95,800 * 7/12 = $55,883.33) - A Koehler letter  ENE will be responsible for June/July service: Storage Demand 1,000,000 MMBtu * $.075 + Deliverability Demand 110,000 * $.183 = $95,130 (June has been paid, July has not) | [NAME] | -95130 | [NAME] | [NAME] | Additional Exposure
5. | Lyondell/Citgo |  | AEP has agreed to pay ENE a calculated estimate of $1,762,925 - A Koehler letter | [NAME] | 0 | [NAME] | [NAME] | Additional Exposure
6. | Gas Lift Deposits |  | Respond to AEP's Final Working Capital Calculation in writing before 10/27/01.  ENE has agreed to pay $25,000 of what AEP has requested of $50,450. - A Koehler letter | LOA (HPL) | -50450 | [NAME] | [NAME] | LOA BS
7. | Specialty Sands Payment |  | ENE has agreed to pay - A Koehler letter | LOA (HPL) | -91000 | [NAME] | [NAME] | LOA BS
8. | Transport Agreements |  | None | LOA (HPL) | 0 | [NAME] | AEP legal
9. | ISC/SAP Billing |  | AEP has agreed to pay 50% of the bill - A Koehler letter | Net Works | -86000 | [NAME] | [NAME] | LOA BS
10. | IT Services Fees |  | Continue to bill and collect the contractual amounts at the beginning of each month  Final settlement on sale of POPS/PGAS is conditional on settling other commercial issues. | Net Works | -1800000 | [NAME] | [NAME] | Additional Exposure
11. | Pre-Close Invoices |  | Make payment for July invoices ($378) and finalize the review of   August invoices ($983) (should only be paid in accordance with the Purchasing Protocol), and AEP is accumulating additonal invoices received in Sept..  The only issue remaining from June invoice dated 5/24 for a truck which ENE has not agreed to pay - A Koehler letter | LOA (HPL) |  | [NAME] | Dedicker | LOA BS
12. | Working Gas  Inventory True Up |  | Maintain a calculation of the potential adjustments to the inventory calculation and accrue interest on the unpaid balance.  Interest of $387K thru 10/15 | [NAME] | -337987 | [NAME] | [NAME] | Additional Exposure
 |  |  | Respond to AEP's Inventory Calculation Statement in writing before 10/14/01 - [NAME] letter
13. | Calpine Guarantee |  | In order to release ENE's collateral obligation, AEP needs to execute the substitute and release agreement (should be signed by Calpine) | LOA (HPL) | 0 | [NAME], [NAME] | AEP legal
14. | Guadalupe Contract |  | 1.  [NAME] that AEP send comments back on back-to-back contract  2.  [NAME] sent response letter to TIE approving to reimburse GPP for costs of consultants working on the assignment of guarantee, up to $15K and requesting a face-to-face meeting b/w GPP, TIE, AEP, ENE, and CCPace in October  3.  Determine who are GPP's lenders and, once known, supply names to [NAME] and [NAME] in order to contact directly | LOA (HPL) | -500000 | [NAME], [NAME] | D. Hyvl | LOA BS
 |  |  |  |  |  | [NAME] ? (RAC)
15. | Spinnaker (Coastline) |  | J Pope (Coastline) has rejected [NAME] counteroffer to settle at $2.55, [NAME] is researching legal ramifications of our capability to settle with Coastline's subcontractors directly (Caldine is the largest). | LOA (HPL) | -5000000 | [NAME] | N/A | LOA BS
16. | Imbalances |  | Work proactively to seek settlements, and possibly send ENE resources to AEP to assist | LOA (HPL) | 14167840 | [NAME], [NAME] | Dedicker
 |  |  | Work with AEP to minimize our financial impact in settling imbalances | LOA (HPL) | -18792046 | [NAME], [NAME] | Dedicker | LOA BS
 |  |  | Exposure listed of $2MM is simply a ballpark estimate | LOA (HPL) | -2472000 | [NAME], [NAME] | Dedicker | LOA BS
 |  |  | Will set up next meeting for 1st week of Oct
17. | A/S Line |  | 1.  Process invoices and bring closure to our exposure  2.  [NAME] to send correspondence to [NAME] (El Paso attorney) on what we need from them to help quantify and bring closure to our future A/S Line obligations; need a date certain) and B Gray to obtain letter from S Braband at AEP; agree on amount of remaining AS Line liability with AEP in writing - A Koehler letter   3.  [NAME] to contact [NAME] regarding netting outstanding receivables against our invoice payments.  See #18 below | LOA (HPL) | -10258000 | [NAME], [NAME] | [NAME], K. Kaase | LOA BS
 |  |  |  |  |  |  | El Paso: [NAME]
18. | Trade Receivables |  | 1.  [NAME] and manage balances  2.  [NAME] who will contact [NAME]  3.  [NAME] to provide statistics of progress to [NAME] | LOA (HPL) | 6170208 | [NAME], [NAME],  [NAME] |  | LOA BS
 |  |  |  | LOA (HPL) | -2000000
19. | Preferred Pipeline Receivable |  | 1.  [NAME] and manage balances  2.  [NAME] (AEP) awaiting confirmation of collection from K. Gruesen | LOA (HPL) | 0 | [NAME] | [NAME],  [NAME]
20. | TX Department of Transportation and other Non-Commodity Receivables |  | 1.  [NAME] and manage balances  2.  ENE accounting ([NAME], C. Price) need to meet with AEP to discuss all non-trade issues | LOA (HPL) | 3261691 | [NAME], G. Whiting | Dedicker
 |  |  |  | LOA (HPL) | -500000 | [NAME], G. Whiting | Dedicker
21. | Ad Valorem and other Taxes |  | Review AEP support and make appropriate payments. Liabilities of $8.4MM are recorded which should hopefully cover our costs | LOA (HPL) | -8407582 | [NAME],  [NAME] | Dedicker | LOA BS
22. | Use Tax Audit |  | 1.  [NAME] and manage balances 2.  Need to finalize audit with the State and make final settlement payments | LOA (HPL) | -3181000 | [NAME],  [NAME] | N/A | LOA BS
23. | Stone Energy |  | Pay Stone Energy in accordance with the Purchasing Protocol | LOA (HPL) | -35000 | [NAME],  [NAME] | Dedicker,  [NAME] | LOA BS
24. | Deferred Debit Reserves |  | Finalize reconciliations, determine exact amount of the reserves and book correcting entries | LOA (HPL) | 4200000 | [NAME] |  | LOA BS
 |  |  | Reserve for potential writeoffs as the Deferred Debit accounts are reconciled | LOA (HPL) | -2895000 | [NAME] |  | LOA BS
25. | Working Capital |  | Working Capital will likely be needed as post HPL issues are settled and thus a reserve for potential additional working capital needs should be maintained | LOA (HPL) | -1000000 | [NAME]
26. | Vinson & Elkins Bill |  | Pay V&E bill when received, estimated to be $3.0MM | LOA (HPL) | -3000000 | [NAME] |  | LOA BS
27. | TerraCo (Environmental Liability) |  | 1.  Accounting to transfer reserve from HPL to TerraCo, HPL to have no future responsibility 2.  [NAME] to complete work through year-end 3.  [NAME] to encompass estimate for costs/losses for 2002 plan 4.  [NAME] to coordinate outside bids (possible turnkey project) 5.  Decide on who does work: in-house or 3rd party 6.  Consider change in TerraCo officers 7.  [NAME], Victoria as potential negotiation tool w/ AEP | TerraCo | -1000000 | [NAME], [NAME] |  | LOA BS
28. | Non-HPL Reserve |  | Reserve unrelated to HPL, should be fully utilized by 12/01 | LOA (HPL) | -3334000 | [NAME]
29. | Trade Payables |  | Outstanding payables will be settled as approached by vendors, otherwise balances will sit until thru statue of limitations | LOA (HPL) | -3507653 | [NAME] |  | LOA BS
30. | Note Payable: Enron Compressor Services |  | Note created when ECS was originally financed, Upstream Compression group is currently considering cash settling this | LOA (HPL) | -2193093 | [NAME] |  | LOA BS
31. | Note Payable - Enron Holdings |  | This is a Note Payable with another Enron entity which will need to ultimately be non-cash settled or assigned to another Enron entity | LOA (HPL) | -75000000 | [NAME] |  | LOA BS
32. | Deferred Federal Income Tax Liability |  | Should clear once the balance sheet has been cleaned up | LOA (HPL) | -1986489 | [NAME] |  | LOA BS
33. | Adonis Energy |  | [NAME] to resolve; ENE sent demand letter to CP&L (AEP) for $200k, we now need to go after this. | LOA (HPL) | 0 | [NAME]
34. | Hart Scott Rodino  Interest Payment |  | 1.  Asset claim by end-of-year limitation 2.  Collect by reducing Inventory true-up payment *   ENE has calculated Interest Rate Payment to be $2,108,870 Base Purchase Price ($332.5MM) * Daily Prime Rate * 32 days (May 1 - June 1) | LOA (HPL) | 0 | Legal, [NAME]
35. | AEP Credit Request |  | [NAME] to send official request for additional credit information in writing  Discuss with [NAME] once request is received | LOA (HPL) | 0 | [NAME] | [NAME]
36. | Dow Receivable Litigation |  | 1.  [NAME] to meet w/ Dow 2.  Per J. Ducote, for 12 years on 2 Dow pipeline delivery points (Nalco Chemicals and another) Enron supplied gas for Entex industrial customers and  [NAME] paid Enron, however, there was never a sales or transport settlement made with Dow.  Over a year ago, Dow pipeline was pigged and suddently customers started asking where there gas was and Dow realized what was happened.  [NAME] (Dow) has asked for reimbursement from Enron of up to $500,000 for 12 years.  Ducote has in the past attempted to settle for real volumes for the past couple of years for $150,000. | LOA (HPL) | -1000000 |  |  | LOA BS
 | Total
 | Texas Desk Exposure
 | Net Works Exposure
 | TerraCo Exposure
37. | Total LOA (HPL) Shareholders Equity
 |  |  |  |  |  | check!
 |  |  | Send bill for the Three Allen Center Rent | Net Works | -9500 | [NAME] | [NAME]