SIEMENS/WESTINGHOUSE DISPUTES

Larry, go get 'em. Whatever you can get you can keep and reduce the fee.
You could make this easy for both of us.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 08/09/2000
03:59 PM ---------------------------

Larry L Izzo@ENRON_DEVELOPMENT
08/09/2000 02:03 PM
To: Joseph W Sutton/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David W Delainey@ECT
cc:
Subject: SIEMENS/WESTINGHOUSE DISPUTES

Currently, Enron has several contractual disputes with Siemens/Westinghouse.
These include: $5-10MM lingering from Marmara; about $4-5MM on Puerto Rico;
and maybe $1-3MM on the Gleason and Indiana Peakers.

In my meeting with Randy Zwirn yesterday, Randy suggested that I meet with
him in an attempt to come to a global settlement on all the Enron disputes.

I propose to do this. I understand the strength of the contractual issues on
each of these projects and I think I can close out the issues by optimizing
the Enron leverage in one global settlement. The process will take from
30-60 days as both sides collect all contractual arguments.

I'll keep ENA informed.

Let me know if either of you object to this global type approach.

LI35700