Enron Mail

From:michael.terraso@enron.com
To:steven.kean@enron.com
Subject:FW: 18/7 - 7:00 p.m. - Update: Emergency
Cc:
Bcc:
Date:Wed, 18 Jul 2001 22:17:00 -0700 (PDT)

Steve, fyi Mike Terraso

-----Original Message-----=20
From: Hawkins, Don=20
Sent: Wed 7/18/2001 5:29 PM=20
To: Lowry, Phil; Terraso, Michael=20
Cc:=20
Subject: FW: 18/7 - 7:00 p.m. - Update: Emergency



FYI,=20

Don=20

-----Original Message-----=20
From: Steve Hopper/TRANSREDES@TRANSREDES@ENRON [ mailto:IMCEANOTES-Steve+=
20Hopper_TRANSREDES+40TRANSREDES+40ENRON@ENRON.com] On Behalf Of Steve Hop=
per/TRANSREDES@ENRON

Sent: Wednesday, July 18, 2001 4:24 PM=20
To: Hopper, Steve=20
Cc: nick.tombs@shell.com.br; Johannes.Walzebuck@shell.com.br; Weidler, =
Peter E; Henshaw, Tony; Gonzalez, Fernando; Farmer, Doug; Berg, Jan van den=
; Naphan, John; Vega, John; Callau, Juan; Hawkins, Don; Khan, Nasim; Powell=
, Laine; NLIMBREI@shell.com.br; Marcelo.Menicucci@shell.com.br

Subject: Re: 18/7 - 7:00 p.m. - Update: Emergency=20


=09We have completed the inspection of the GAA line to LaPaz, and everythin=
g looks OK. We'll reinitiate gas flow tonight. OSSA II should be complete=
d tomorrow. Army personnel continues to be patrolling the area, but things=
remain pretty calm, despite several areas in the country that are under ro=
adblock by protesters.

=09I'm going to keep things in emergency status until at least tomorrow, af=
ter today's roadblocks are lifted. Will advise of any developments.

=09Steve=20




=09Steve Hopper=20
07/17/2001 07:02 PM=20
=20
To: nick.tombs@shell.com.br, Johannes.Walzebuck@shell.com.br, Peter E W=
eidler/Enron@EnronXGate=20
cc: Tony Henshaw/TRANSREDES@TRANSREDES, Fernando Gonzalez/TRANSREDES@TR=
ANSREDES, Doug Farmer/TRANSREDES@TRANSREDES, Jan van den Berg/TRANSREDES@TR=
ANSREDES, John Naphan/TRANSREDES@TRANSREDES, John Vega/TRANSREDES@TRANSREDE=
S, Juan Callau/TRANSREDES@TRANSREDES, Don Hawkins/Enron@EnronXGate, Nasim H=
Khan/TRANSREDES@TRANSREDES, Laine A Powell/ENRON_DEVELOPMENT@ENRON_DEVELOP=
MENT=20

=09Subject: 17/7 - 7:00 p.m. - Update: Emergency=20

=09The situation continues to be stable. CLHB has reinitated LPG operation=
s to LaPaz, but continue their inspection. TR will not reinitiate gas or c=
rude export operations until we have completed our inspection. We have for=
med joint teams with CLHB and Army personnel to perform the inspection. It=
could take as long as 48 hours, but we'll have a better estimate after we =
get a progress report in the morning. All crews available systemwide are =
mobilizing for inspection of the entire system, but for now our priority co=
ntinues to be the lines in the altiplano. The three stations in the altipl=
ano have been shut down, bled off, and locked. Other supervisors throughou=
t the system have been advised and are on alert.

=09Government and regulator continue to be supportive of our shut-down and =
inspection action plan. We have developed a contingency plan with COBEE (t=
he regional electricity distributor) under which they will redistribute ene=
rgy out of spare capacity in Cochabamba to LaPaz - this should cover LaPaz=
's electricity needs during the duration of time we need to complete our in=
spection. The only other significant consumer is a large cement plant in L=
aPaz. We've agreed that they will slow down their operations, and provide =
only small, local supplies (industrial concrete demand will be shut-in).

=09We did not send a press release on the issue, although we have received =
inquiries - our response is that we are concerned about the risk to Bolivia=
ns this action presented, and we are performing an inspection on the system=
. We are avoiding mention of gas stoppage to LaPaz at this time, due to th=
e volatility of the issue in LaPaz. Government (VMEH, SIRESE) has agreed w=
ith the message.

=09We expect that with the cement plant and power plant off-line, line pack=
should be sufficient to keep commercial demand satisfied for a few days. =
In either event, we are working with the local gas distributor to prepare a=
notice for LaPaz newspapers instructing gas consumers in the area how to s=
afely shut-down and restart their equipment in the event that it becomes ne=
cessary.

=09The most likely scenario as of now is that Edwin Morales - a local revol=
utionary tied to the coca trade - is behind the action. Morales has had co=
ntact in the past with the Raul Rocha bunch out of Chuquina (Oruro), so we'=
re still not sure whether this was an act against TR and/or the industry, o=
r if it is against government. Morales has just joined forces with another=
rebel out of Cochabamba and is planning nationwide road blocks for tomorro=
w. Their agenda is national - they've never isolated TR or our industry as=
a whole, although Chaco in the north have been targeted in the past, proba=
bly because they have a field in the middle of Morales' stronghold. The po=
litical situation here is tenuous with Banzer out and various political int=
erests looking to fill the leadership void. We're watching this situation =
closely. The local Army brigade has committed to staying on vigilance for =
at least the next few days - once we're comfortable with the operational si=
tuation, we'll discuss a longer-term solution.

=09Steve=20

=09---------------------- Forwarded by Steve Hopper/TRANSREDES on 07/17/200=
1 06:37 PM ---------------------------=20

=09Steve Hopper=20
07/17/2001 03:53 PM=20
=20
To: nick.tombs@shell.com.br, Johannes.Walzebuck@shell.com.br, Peter E W=
eidler/Enron@EnronXGate=20
cc: =20

=09Subject: Emergency=20

=20


=09At 1:45 p.m. today, a CLHB line walker discovered a bomb on their LPG li=
ne in the Altiplano 14 km from out SicaSica station. Our OSSA II (crude ex=
ports to Chile) and GAA (gas to LaPaz) share the same ROW, and would likely=
have been taken out with the bomb. We understand that the bomb, which had=
a manual fuse, did not go off, but had been lit and failed to explode. Th=
e Army has been mobilized to diffuse the bomb, and we consider the immediat=
e threat neutralized.

=09However, given that we have now seen several attempts in the last 10 day=
s of sabotage against our lines, I have declared a state of EMERGENCY, and =
will notify the Enron Crisis team.

=09We have shut all Altiplano pipeline operations down, and have mobilized =
a joint CLHB/TR/Army team to perform vigilance on the entire altiplano netw=
ork. The immediate result of this is that lights will likely start to go o=
ut in LaPaz within the next few hours - the GAA line is their primary power=
fuel supply. I've notified all relevant government authorities of the sit=
uation, and so far am getting support. I've also asked the Embassy to look=
into the situation, with the understanding that if this is the result of a=
n organized movement, they might have access to intelligence that could be =
helpful.

=09Additionally, we've shut down all non-critical maintenance operations th=
roughtout the rest of the system, and are directing spare personnel to perf=
orm vigilance on the remainder of the system as quickly as possible. Until=
and unless we have information that this threat goes beyond the altiplano,=
we will continue operations, with all stations on alert. We will kick off=
the the total system inspection within the next few hours, as soon as our =
people complete the overall plan.

=09I will keep you posted as things develop.=20

=09Steve=20