Enron Mail

From:doug.leach@enron.com
To:a..shankman@enron.com
Subject:RE: Methanol tanks
Cc:
Bcc:
Date:Wed, 22 Aug 2001 11:32:32 -0700 (PDT)

Still trying to get John Goodpasture, who is representing Clean Fuels to gi=
ve us an indicative or firm price. I hound him on a daily basis and can't u=
nderstand why he won't quote us a price. As you may know the methanol plant=
has stopped operating and we soon will have to supply the MTBE plant with =
third party methanol barrels and we will need tankage to discharge barges a=
nd cargoes before the methanol goes to Morgan's Pt. Nowlan's thought was to=
have Mike intercede with Horton to move the process along, but Mike would =
rather save his bullets with Stan for a later day. If you have any stroke w=
ith Goodpasture or can strong arm him better than I have been able to do th=
en I would appreciate your help. These barrels are critical to our long ter=
m supply and ability to discharge foreign cargoes of methanol. We also are =
evaluating a pipeline from the methanol tanks to the MTBE facility to save =
the barge freight and make Morgan's Pt more efficient.=20

-----Original Message-----
From: =09Shankman, Jeffrey A. =20
Sent:=09Wednesday, August 22, 2001 11:59 AM
To:=09Leach, Doug; Mcconnell, Mike
Cc:=09Nowlan Jr., John L.; Robinson, Ted; Vitali, Lisa
Subject:=09RE: Methanol tanks

Doug, Where are we on this?

Jeff

-----Original Message-----
From: =09Leach, Doug =20
Sent:=09Tuesday, August 14, 2001 4:55 PM
To:=09Mcconnell, Mike; Shankman, Jeffrey A.
Cc:=09Nowlan Jr., John L.; Robinson, Ted; Vitali, Lisa
Subject:=09Methanol tanks

Per notification from Jim Prentice it appears the Enron methanol plant will=
cease production this Friday. Global Products has made arrangements to pur=
chase our methanol feedstock requirements from outside sources once we have=
taken the balance of the methanol production at the plant. We have been wo=
rking with John Goodpasture to purchase the methanol tanks at the Enron met=
hanol plant for our future methanol feedstock storage. These tanks are able=
to store in excess of 400,000 barrels. We are still waiting for an indicat=
ive price on the tanks and the latest was a comment from Prentice who said =
Clean Fuels needs to do their fiduciary duty and check the market for the t=
anks' value. Since these tanks are probably on their books at zero we are h=
opeful that they would offer us a favorable price. The only other issue is =
that the dock leading to/from the tanks is owned by Oxy and we would need a=
long term arrangement with Oxy to utilize their dock to access the tanks. =
Again, Goodpasture was checking with Oxy on this issue. In addition, EOTT i=
s willing to operate the facility, if necessary.

Mike--could you please contact Stan Horton and get him to engage in the dis=
cussions so we can move the process forward and have Clean Fuels offer us a=
price on the tanks? This is important because we will soon be bringing in =
cargoes/barges in excess of the methanol tankage at the Morgan's Pt. MTBE p=
lant and we will need a place to store it.