Subject: Impact Shares
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Fri, 23 Nov 2001 07:59:21 -0800 (PST)

John, Milly has asked me to move the share certificates for Impact Energy to Enron Canada's control.  These shares currently reside in a Morgan Stanley account controlled by ENA.  As you may recall Enron Canada bought and paid for these shares and special warrants.  Enron Canada directly owns 1,595,455 shares valued at USD$1.6 million and indirectly owns 1,300,000 shares (through JEDI) which Enron Canada beneficially owns 50% worth USD$650,000. These securities are worth USD$2.25 million to Enron Canada and I believe represent the only significant non trading asset in Enron Canada.  Enron Canada proposes to move all the certificates to the control of the legal group of Enron Canada.  The logic is simple, Enron Canada has a fiduciary duty to its shareholders and creditors to control its assets and if they need to be disposed we are in the best position to realize full value for the securities.  Please advise if you have any problems with this proposal, otherwise I will make it happen on monday November 26, 2001.

Thanks John