Message-ID: <4292637.1075845491534.JavaMail.evans@thyme>
Date: Fri, 11 May 2001 10:14:00 -0700 (PDT)
From: richard.lydecker@enron.com
To: jeff.skilling@enron.com
Subject: Crown Energy
Cc: brian.redmond@enron.com, louise.kitchen@enron.com, john.lavorato@enron.com
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I spoke with Oscar Wyatt this afternoon on Crown and subsequently to Tom 
Bachtell, an attorney in Utah who is attempting to organize shareholders to 
replace existing management.  Crown has an asphalt oil sand production 
facility in northeast Utah and an asphalt distribution company.  Bachtell 
owns about 4-5% of the stock.  Mr. Wyatt indicated he had a "small" holding.  
I indicated that we would consider any proposal that might result in 
salvaging some value from this investment.

We hold convertible preferred and a small amount of common at an original 
cost of $5.5 million in 1997.  Fully converted, our ownership would be 
approximately 25%.  The Company has a net deficit of $21 million and a "going 
concern" paragraph in its audit opinion.  We have written down our carrying 
value to nil.

The Company in engaged in an arbitration proceeding against MCN Energy and 
MCNIC Pipeline.  MCNIC has interests in the asphalt assets and is a lender to 
Crown.  MCNIC attempted to foreclose on certain Crown assets and Crown in 
turn counter-sued for $100 million.  The arbitration hearing will be held 
July 23 - August 10.  If Crown obtained an award from the arbitration, some 
value could be restored to our investment.

We will get further information from Bachtell on the details of his plans and 
recommend what position Enron should take in this matter.