Subject: Status update
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Wed, 25 Oct 2000 01:54:00 -0700 (PDT)

fyi. michelle has the kelly role at the end been discussed with you or are we 
covered re consulting agreement??

Lisa J. Mellencamp
Enron North America Corp.
1400 Smith St.
Houston, TX  77002
Tel:  (713) 853-7986
Fax: (713) 646-3393
E-mail:  [email-masked]
----- Forwarded by Lisa Mellencamp/HOU/ECT on 10/25/2000 08:52 AM -----

	Randal Maffett
	10/24/2000 05:40 PM
		 
		 To: [email-masked], [email-masked], Jeff Donahue/HOU/ECT@ECT, Andrea V 
Reed/HOU/ECT@ECT
		 cc: [email-masked], [email-masked], [email-masked], 
[email-masked], Lisa Mellencamp/HOU/ECT@ECT
		 Subject: Status update

Selexol Plant - has been sold to Tanoma for $200K.  Wire transfer received 
today.  I have called Montauk and informed them and withdrawn from further 
negotiations with them.  FYI - we never accepted their offer.
Austin PPA - was sold to EDI for $150K.  Wire transfer received yesterday.
Steve and Geoff are pursuing the sale of the blower and flare from the Austin 
project, potential $30K.
Current cash projection (based solely on money in the bank) through the week 
ending Nov. 3 is + $135K.  The rent for the Austin office for Oct has been 
paid.  This number also includes $20K for Nov's rent (due 11/1).  This 
provides some breathing room (time-wise) to continue trying to execute the 
strategy of an orderly liquidation in order to maximize Ecogas' ability to 
satisfy its obligations with its creditors.  
Our meeting today with ZAPCO re: the purchase of the company via a stock swap 
went ok but my confidence level a deal can be done in the timeframe required 
is very low due to complications on their part.  We are exploring another 
structural option - at ZAPCO's request.  The ball is in their court and they 
know we are continuing to pursue other alternatives.
Discussions with Inter-Asia Venture Management (IAVM) continue to both 
progress and expand.  In addition to Rosenberg IAVM has expressed a direct 
interest in Ecovest and McCommas.  Considering McCommas represents the bulk 
of current value, IAVM has now elevated their interest to buying Ecogas Corp. 
as a whole rather than on a piecemeal basis.  Again, the ball is in their 
court and they are demonstrating a real sense of urgency to make something 
happen.  They are well aware of the time constraints.
Frito-Lay/McCommas Bluff - F/L senior management does not want to "get into 
the landfill energy business" (at least directly) and brought in a third 
party intermediary.  After detailed discussions and due diligence on their 
part, the third party was not willing to put forth a formal offer.  Their 
intermediary does not have the capital to close the deal and is not willing 
to put his current assets at risk.  As a result, we have escalated 
discussions with another entity who could provide the same interface with F/L 
and whom would be acceptable by F/L.  This will also be dependent on the 
probability of the IAVM and/or ZAPCO discussion referenced above.
Skyline/Westside - a bid request package was sent out to approximately 8 or 9 
industry participants with bids due 10/23.  To date only one company 
responded with a very low bid and a lot of "contingencies."  There are at 
least 2 other companies who called and expressed interest in bidding but have 
not yet submitted their bids.  EDI has requested permission to visit with WMI 
directly and get a read on the Gas Rights Agreements and their willingness to 
work with them.  At this point, I don't think we should agree.  Depending on 
how discussions with IAVM and/or ZAPCO progress, this will require a 
judgement call as to whether or not we should proceed with this transaction.  
Any input from the rest?
FYI - Felipe Vega, the controller for Ecogas, has tendered his resignation 
effective Monday, Oct. 30.  Kelly Mahmoud will assume the necessary role to 
keep things in order.

Given the updates above, we are still pursuing parallel and simultaneous 
paths of either selling the company outright or strategically liquidating 
assets with our focus on McCommas Bluff.  Feel free to call if you have any 
questions or would like to discuss in more detail.