Project Ice - Status Update

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----- Forwarded by Jeffrey A Shankman/HOU/ECT on 02/20/2001 08:11 AM -----

Raul Rizo-Patron
02/16/2001 01:28 PM

To: Jeffrey A Shankman/HOU/ECT@ECT, Mike McConnell/HOU/ECT@ECT, John L
Nowlan/HOU/ECT@ECT
cc: Timothy J Detmering/HOU/ECT@ECT
Subject: Project Ice - Status Update

We have completed the preliminary Transammonia valuation analysis with an
equity range of $70MM to $80MM (enterprise value of $250MM to $260MM). The
conditional and non-binding letter to the counterparty will be faxed today
with an equity range of $60MM to $80MM. I lowered the bottom end of the
range to $60MM for negotiation purposes.

Attached is a presentation we've put together focusing on Transammonia's
business, deal specifics, and our financial valuation.

Raul