Enron Mail

From:keith.miceli@enron.com
To:mark.palmer@enron.com
Subject:Transredes Oil Spills: Possible PR Cases for your Wednesday Meeting
Cc:kean@enron.com, dennis.vegas@enron.com
Bcc:kean@enron.com, dennis.vegas@enron.com
Date:Tue, 3 Oct 2000 07:18:00 -0700 (PDT)

Mark:

Although it's oftentimes difficult to quantify or establish a cause and
effect relationship between PR and Enron's bottom line, the contributions
that the PR Houston team made in mitigating the effects of the largest oil
spill in Bolivia's history might be an exception to the rule. As you know,
Transredes experienced two oil spills that were classified as crises: a 29
thousand barrel spill in January (Desaguadero) and a smaller one (Chorety)
this past July. In both instances, PR staff from Houston were dispatched to
Bolivia to develop an lead a crisis communication plan.

The January crisis garnered enormous daily coverage and attention throughout
the country and region. Under Dennis' leadership, an ambitious
communication's plan was designed and implemented to mitigate the spill's
repercussions in the international media and NGO community. The failure to
manage expectations was critical considering we were also building the Cuiaba
pipeline at the same time. During this period, the Enron Stcok price
continued to grow from somewhere in the 50's to the 70's. Had the team failed
to communicate effectively to all constituents, this could have adversely
affected our brand and stock price--since the media and international NGO's
were tracking our daily performance. The ability to engage, counsel and
coordinate across the business groups and organizations had a significant
result on our ability to execute our plan. Dennis was recognized by Shell,
our partner in Transedres, for his leadership and personal commitment to the
process during the January spill. I played a similar role with the second
crisis, which was far less significant than the first one--though it had the
potential to become damaging. During this whole period NGO's have tried to
undermine our financing efforts at OPIC and the Inter-American Development
Bank, so failure to live up to our enviormental and humanitarian commitments
could have been disasterous.

Hopefully, you'll find this useful.

Keith