Re: Potential Conflict

We've checked and have no problem. DF

Molly Sample @ EOTT
02/26/2001 07:08 PM

To: AL ALEXANDERSON/ENRON@enronxgate, Angela Villagomez/ENRON@enronXgate,
Becky Stephens/ENRON@enronXgate, Becky Zikes/ENRON@enronXgate, Bonnie
White/ENRON@enronXgate, Britt Davis/ENRON@enronXgate, Bruce
Lundstrom/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Charles
Cheek/ENRON@enronXgate, Daniel R Rogers/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
David Aamodt/ENRON@enronxgate, David Grant/ENRON@enronXgate, Drew
Fossum/ET&S/Enron@ENRON, Eileen Kisluk/ENRON@enronXgate, Elizabeth
Labanowski/ENRON@enronXgate, Gay Arnold/ENRON@enronXgate, Jan
Cooley/ENRON@enronXgate, Janet Place/NPNG/Enron@ENRON, Jim
Armogida/ENRON@enronXgate, John Ale/HOU/AZURIX@AZURIX, Jordan
Mintz/ENRON@enronXgate, Kathy Siess/ENRON@enronXgate, Kristina Mordaunt/Enron
Communications@Enron Communications, Lee Carrier/ENRON@enronXgate, Lisa
Robichaux/ENRON@enronXgate, Marc Manly/HOU/EES@EES, Mark E
Haedicke/HOU/ECT@ECT, Michael P Moran/ENRON@enronXgate, Michelle
Lawless/ENRON@enronXgate, Rex Rogers/ENRON@enronXgate, Richard B
Sanders/HOU/ECT@ECT, Rita Bahner/ENRON@enronXgate, Rob
Walls/ENRON@enronXgate, Robert C Williams/ENRON@enronXgate, Robert
Vote/ENRON@enronXgate, Stephen Wallace/Corp/Enron@ENRON, Tracy
Carter/ENRON@enronXgate, Vicki Sharp/HOU/EES@EES
cc: Walt Zimmerman/Houston/Eott@Eott, lsoldan@Enron.com, Mike
Kelly/Houston/Eott@Eott

Subject: Re: Potential Conflict

It appears that EOTT Energy Pipeline Limited Partnership will be named as a
defendant in a lawsuit brought by some of the landowners who were affected by
a crude oil release in a subdivision near Midland, Texas. The release
involved a segment of pipe purchased by EOTT from the Texas-New Mexico
Pipeline Company in May of 1999. If EOTT is named as a defendant, we intend
to file a cross claim against Tex-New Mex. In that cross claim, we intend to
allege fraud and gross negligence by Tex-New Mex in the clean up of that
release and the subsequent representations to EOTT regarding the cleanup.

Please let me know by Wednesday, Feb. 28 at noon if you have any issues with
EOTT's claim against Tex-New Mex. If I do not hear from you, I assume there
are no issues. Thanks for your response.

Molly Sample
General Counsel
EOTT Energy Corp.
713-993-5027
fax 713-402-2806