EECC Litigation Update - Puerto Rico, Marmara, Dabhol

----- Forwarded by Stephanie Harris/Corp/Enron on 12/13/2000 01:43 PM -----

John.Schwartzenburg@enron.com
12/13/2000 01:22 PM

To: Stephanie.Harris@enron.com
cc: vsharp@enron.com
Subject: EECC Litigation Update - Puerto Rico, Marmara, Dabhol

I would like to update the legal report I just sent to you as follows:

Puerto Rico: Larry Izzo had a conference call with Misson Energy
regarding the claims between EECC and EcoElectrica. Enron's shareholder
representative was also involved. The parties reached agreement in
principle on the open issues (the owner dropped its claims against EECC,
EECC relinquished two smaller claims, the Owner will pay EECC's
remaining claims). Bracewell's analysis of the claims was very helpful
in reaching this result.
Marmara: As expected, Black&Veatch has filed a formal notice of
arbitration against EECC relative to sums they claim are due them with
respect to the Marmara Project. EECC management expects that this will
be settled early next year, and that it may provide an opportunity to
reach a global settlement with Black & Veatch re Puerto Rico and
potential future work. Gail Brownfeld and Scott Burdine of Hagans, Bob,
Burdine are both up to speed.
Dabhol: Besix has informed us that we will be receiving thier notice of
arbitration re the Dabhol Quarry before the end of the year. We are told
that they have changed their counsel, apparently releasing the English
firm of Masons and engaging a firm in Washington DC of Watts, Tieder,
Hoffer & Fitzgerald to carry the claim forward. This is an unusual move,
since the contract is governed by English law and the site of the
arbitration will London. Besix's local representative told our project
manager that Besix was not happy with the Masons advice, but it may be
that they want a US firm involved, backed up by an English firm. I have
asked Phil Bruns to check into the reputation of Watts, Teider. He was
not familiar with them, but has found that it is a 67 lawyer firm that
specializes in construction and real with a main office in northern
Virginia and offices in California. Gail Brownfeld, Phil Bruns, and
Jonathon Rosshandler are all aware of this development.

JWVS