Subject: El Paso Transportation Values - CONFIDENTIAL
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Tue, 29 May 2001 07:22:00 -0700 (PDT)

Armando, further to our conversations please find attached my calculation of 
the values we are seeing in the marketplace. The information provided is for 
discussions between Mexicana and ENA and is not to be distributed to any 
other party. 

As discussed, ENA's economics are based on a variety of assumptions including 
volumes ( that actually flow ), basis market, tariffs, and credit, not 
withstanding the paper we will be looking at executing. 

I believe Enron is your best choice in counterparties and we very much 
welcome the opportunity to act on your behalf as Agent in the liquidation of 
the transportation on El Paso.  

In summary, and as previously discussed I would like to submit a term sheet 
to you based on a summary of the documents and steps we will need to 
impliment to get this agreement in place. Here are just a few of the 
important doc's and potential next steps:

NEXT STEPS:
? Mexicana needs to decided on confirm that you have chosen ENRON NORTH 
AMERICA to act as your AGENT. 
? If ENRON is deemed agent then we need to "Accelerate' the steps in the 
documents summary.

DOCUMENTS:
? Drafting and execution of Agency agreement  between Mexicana and ENA
? Drafting and execution of physical confirm  to facilitate the Monthly and 
Daily purchases ENA will make at the border ( Topack) with Mexicana
? Potential Deemed ISDA agreement to facilitate swaps ( to hedge spreads if 
so desired ).
? ENA requires ( copy of By-Laws ), even if they are in spanish, we will need 
these to take next step ( we have the ability to review internally) 
? ENA requires power of attorney documentation
? Execution of Agency agreement between Mexicana, El Paso Natural Gas and 
ENA. 
? Satisfactory credit review

?