Enron Mail

Subject:Pipeline problem
Date:Fri, 28 Sep 2001 07:30:35 -0700 (PDT)

Dear Ken,
I apologize for bothering you with this kind of a nuisance, however I hope you can help my friend. I called you a year ago about problems dealing with the Houston Pipeline group. I am appealing to you again.

I was contacted to provide nitrogen gas for a pipeline pigging project last year on a 20" line that goes south from Corpus Christi. Rusty Bellflower told me I was going to provide the nitrogen and then after my group was mobilized on short notice over a weekend, they cancelled - did not even call us, just never called back. I spent a week on the project and my subcontractor was out his mobilization cost, and after more than a year, they finally paid a part of our cost.

During the negotiation for the nitrogen set up, I visited the pipeline site, and saw some oil on the ground. I mentioned to the HPL rep Rusty Bellflower, that I had a biological product that is excellent for eliminating oil. He called in a big rush on a Friday afternoon and said for me to hot shot 10 or so drums of the stuff to a site on the beach (10 pigs or something) where they would put the chemical into the 20" pipeline. He even gave me a PO number (X000496) A week later he called and said they decided not to use the chemical. I told him we were going to charge for restocking and the cost for hot shot services.

Rusty said that if we charged them anything we could be sure that we would never work for HPL or Enron again.

That is my experience with HPL.

Now my friend Jay Pope with Coastline Resources is also having trouble on his part of the pipeline work. Nick Cocavessis of HPL contacted Jay and asked Jay to bid the pigging job. A few things went wrong, but most of them were a result of bad decisions on the part of the HPL personnel. Why did they call a small outfit like Coastline in the first place? It looks like they called them so they could muscle them around at the end of the job. Jay Pope has been able to reduce the balance due to the subcontractors to $2,780,000. Enron is offering $2,550,000. Enron attorney (Andy Edison) said "Tell Jay he'll just have to chiselanother $ 230,000.00 out of the sub's"

I am a stockholder in Enron, but I do not see the sense in beating up contractors. Is there anything you can do to get the old HPL group to settle with Jay?

Thank you for looking at this.

Hank Hilliard
PURGIT emission control system
Houston, TX