FYI, Jim asked that I drop you a note with regard to a proposed LNG project
being developed by Global Markets. I have provided some technical support
with respect to some onshore storage tariff issues.

The project consists of converting an oil tanker into a floating vaporization
facility, anchoring it off the coast of California and constructing a subsea
pipeline to bring the gas onshore. The facility would have a daily unloading
rate of 500,000 mmbtu/d, taking approximately 6-7 days to fully unload a
cargo. Approximately 172,000 mmbtu/d would go directly to market, with the
remainder being injected into utility storage facilities for ultimate
withdrawal prior to arrival of a new shipment of LNG (roughly 11 days). The
goal is to baseload a market of 172,000 mmbtu/d.

The project would have a start-up date in early 2003. While other proposals
are being considered to bring LNG into California, the Enron proposal is
unique in that it is considering onshore gas storage vs offshore LNG
storage. Retrofitting the oil tanker takes approximately 18 months.
Constructing an offshore LNG storage facility would take 3 years - providing
Enron a competitive advantage with respect to timing. To protect this
competitive advantage during the development stage of the project, it has
been requested that this particular aspect be kept confidential.

Lisa Yoho is working directly with Kurt Lindahl, the project manager.