Subject: Dabhol
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Sat, 6 Jan 2001 02:14:00 -0800 (PST)

Jeff/Mike,

I understand there is some concern regarding the take-or-pay exposure under 
the LNG contracts between DPC and Oman LNG and Adgas. First, there is no 
direct Enron Corp exposure. Both contracts are between DPC and the related 
supplier. There are no Corp performance guarantees in either SPA. Attached is 
a memo sent to Jim Hughes last month outlining the contractural obligations 
and current discussions with the suppliers.

From a practical standpoint both suppliers will work with us to reschedule 
the start dates and to modify the fixed quantities. I  met with both 
suppliers before the holidays and they reconfirmed they will work with Enron 
as they understand the problems in India. We have delayed the contractural 
start date under  both contracts to the maximum extent possible: February 11, 
2002 for Oman and April 30, 2002 for Adgas. What this means contracturally is 
more than a year to work with the suppliers. Both suppliers expect an update 
on DPC when I return to the Middle East next week and both do not expect to 
discuss any contract matters until the situation in India is clearer. I will  
be in New Mexico through tomorrow if you want to discuss further. My phone 
number is 505/336-8400.

Clay