NCPH coal contract

Wes,

Just a note to confirm that on behalf of NCPH, the LLC that owns the Elizabethtown and Lumberton coal facilities in North Carolina, we have entered into a eight year contract with the coal desk. For lack of an index, the contract is a cost based requirements contract which provides for physical delivery of coal to the Lumberton Handling facility. The contract also allows NCPH to lock prices at an offer in-lieu of cost as we have done for the balance of 2001 for $72/ton in order to manage the CPL off take agreement. Presently this is an intercompany transaction as NCPH is a wholly owned subsidiary of ENA with accrual treatment, however this contract is part of the sale of NCPH to AIG which will yield a true third party contract and MTM treatment. The negotiations of the SPA and other agreements are going well and we will keep you apprised.

Regards,
Ozzie Pagan