Message-ID: <20112283.1075854488658.JavaMail.evans@thyme> Date: Thu, 3 Aug 2000 06:09:00 -0700 (PDT) From: david.delainey@enron.com To: rob.milnthorp@enron.com, max.yzaguirre@enron.com, rodney.malcolm@enron.com, bryan.burnett@enron.com, raymond.bowen@enron.com, paul.devries@enron.com Subject: Tembec and US Originators Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: David W Delainey X-To: Rob Milnthorp, Max Yzaguirre, Rodney Malcolm, Bryan Burnett, Raymond Bowen, Paul Devries X-cc: X-bcc: X-Folder: \David_Delainey_Dec2000\Notes Folders\'sent mail X-Origin: Delainey-D X-FileName: ddelain.nsf Guys, to end all arguments, I would suggest the following protocol which is similar to what was discussed at Columbia Lakes: a) P&P swaps and anything to do with the network strategy/assets in the paper sector in Canada and Mexico - Industrial Origination; b) Pure energy commodity positions and stand-alone energy assets (no outsourcing) for all industrial segments in Canada and Mexico - ECC or Enron Mexico; c) Energy outsourcing for all industrial segments in Canada and Mexico - I would like Enron Canada and Enron Mexico to develop a written target list in which ECC, Enron Mexico and the Industrial Origination groups would work together to develop, sell and execute on the most profitable and value adding outsourcing product for the industrial customer in Canada and Mexico - ECC and Enron Mexico's understanding of the energy markets in Canada and Mexico coupled with the customer facing, product development and execution skills in Houston should provide a winning team. I am asking for the three teams to clearly identify the outsourcing targets, lead sales and structuring people and the timing as far as starting discussion with each target customer (ASAP). I would hope that the Mexican and Canadian teams would lead the sales process and the Houston team lead the structuring, customer facing and execution but I will let you decide the optimum mix. Either way, I am expecting this target list completed and agreed to in the next two weeks for Canada and Mexico; and d) for Tembec I don't think it makes sense to change the deal team at this point; however, the US team will keep the Canadian team in the loop and if the products become non-outsourcing related the deal should be passed to ECC. Regards Delainey ---------------------- Forwarded by David W Delainey/HOU/ECT on 08/03/2000 12:31 PM --------------------------- Rob Milnthorp 08/03/2000 09:46 AM To: David W Delainey/HOU/ECT@ECT cc: Subject: Tembec and US Originators Dave, attached is some of the background correspondence in anticipation of our meeting with Brian Burnett. Regards Milnthorp ---------------------- Forwarded by Rob Milnthorp/CAL/ECT on 08/03/2000 09:29 AM --------------------------- Angela McCulloch 07/27/2000 11:07 AM To: Rodney Malcolm/HOU/ECT@ECT, Edward Ondarza/HOU/ECT@ECT, James A Ajello/HOU/ECT@ECT cc: Rob Milnthorp/CAL/ECT@ECT Subject: Tembec and US Originators Rodney, Edward, Jim - We've been over this issue a number of times and I thought we had reached resolution when we last met with Delainey. My understanding with respect to coverage of Canadian Industrials is as follows: 1.) ENA to take lead on industrials that have facilities in both US and Canada and will co-ordinate coverage with ECC with respect to Canadian Facilities. 2.) ECC to take lead on industrials that have Canadian Facilities only. 3.) With respect to Canadian Pulp & Paper Industrials, ENA will cover Pulp & Paper Swaps and SPV structuring. ECC will cover these industrials for all other Enron products (i.e. power, gas, services, etc.) Again, coverage needs to be co-ordinated. Specific to Tembec, I share Paul's concerns on why ENA would send 2 people to talk to Tembec re: outsourcing when Tembec is across the hall from ECC, ECC has an established relationship, and Tembec is a Canadian Company with no US facilities. It is my hope that we can resolve this amongst ourselves without having to get Dalainey involved. I would suggest a conference call next week. In the interim, Paul will forward a CA to Tembec in contemplation of an outsourcing arrangement. Regards, Angela McCulloch for Rob Milnthorp Assistant to Rob Milnthorp (403) 974-6738 ---------------------- Forwarded by Angela McCulloch/CAL/ECT on 07/27/2000 11:04 AM --------------------------- Paul Devries 07/25/2000 01:30 PM To: Rob Milnthorp/CAL/ECT@ECT cc: Subject: Tembec and US Originators Rob, We just had a very good meeting with Tembec about Energy procurement and energy outsourcing. While the meeting went well, I am very confused about the Enron team making the pitch to them. My understanding is that the Canadian originators - particularly the Toronto team for Eastern Canadian companies will be responsible for everything except for pulp and paper swaps and to some extent, new SPV's. In this instance, 1. Tembec is a Canadian Company 2. All their assets are in Canada 3. Jan has been working with Tembec people in their largest facility 4. We know the executive team at Tembec 5. We clearly are very knowleadgable in all aspects of the Ontario energy market which is their focus right now 6. We understand and are pitching the overall energy outsourcing arrangement similar to the US pitches With this in mind, I am not sure why Kellie Metcalf and Bob Anderson flew up here (6 hours flight time there and back, $4,000 to $5,000 in flights and hotels) for a 4 hour meeting with Tembec. Kelly was quite vocal in saying that this is a client they want to serve out of Houston. I have stated to her that that does not make any sense in terms of efficiency and costs and knowledge of the market where Tembec's assets are. Obviously, much of the technical engineering work would and should be done by the engineering team put together in the Industrial Services Group should a deal be struck. However, the commercial negotiations and marketing should be led by this office!!! I thought this had been agreed to already. We managed to piece up the meeting and deliver the "Enron" message, but going forward we need to have this resolved. Cheers, Paul D