Message-ID: <1892130.1075851046112.JavaMail.evans@thyme> Date: Thu, 19 Jul 2001 01:37:00 -0700 (PDT) From: steven.kean@enron.com To: kevin.hannon@enron.com Subject: FW: 18/7 - 7:00 p.m. - Update: Emergency Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: Steven J Kean X-To: Kevin Hannon X-cc: X-bcc: X-Folder: \Steven_Kean_Oct2001_2\Notes Folders\Attachments X-Origin: KEAN-S X-FileName: skean.nsf fyi ---------------------- Forwarded by Steven J Kean/NA/Enron on 07/19/2001=20 08:37 AM --------------------------- From: Michael Terraso/ENRON@enronXgate on 07/18/2001 07:17 PM To: Steven J Kean/NA/Enron@Enron cc: =20 Subject: FW: 18/7 - 7:00 p.m. - Update: Emergency 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 =01;-----Original Message-----=20 From: =01; Steve Hopper/TRANSREDES@TRANSREDES@ENRON [=20 mailto:IMCEANOTES-Steve+20Hopper_TRANSREDES+40TRANSREDES+40ENRON@ENRON.com]= =01;=20 On Behalf Of Steve Hopper/TRANSREDES@ENRON Sent:=01;=01; Wednesday, July 18, 2001 4:24 PM=20 To:=01;=01;=01;=01; Hopper, Steve=20 Cc:=01;=01;=01;=01; nick.tombs@shell.com.br; Johannes.Walzebuck@shell.com.b= r; Weidler,=20 Peter E; Henshaw, Tony; Gonzalez, Fernando; Farmer, Doug; Berg, Jan van den= ;=20 Naphan, John; Vega, John; Callau, Juan; Hawkins, Don; Khan, Nasim; Powell,= =20 Laine; NLIMBREI@shell.com.br; Marcelo.Menicucci@shell.com.br Subject:=01;=01;=01;=01;=01;=01;=01; Re: 18/7 - 7:00 p.m. - Update: Emergen= cy=20 We have completed the inspection of the GAA line to LaPaz, and everything= =20 looks OK.=01; We'll reinitiate gas flow tonight.=01; OSSA II should be comp= leted=20 tomorrow.=01; Army personnel continues to be patrolling the area, but thing= s=20 remain pretty calm, despite several areas in the country that are under=20 roadblock by protesters. I'm going to keep things in emergency status until at least tomorrow, afte= r=20 today's roadblocks are lifted.=01; Will advise of any developments. Steve=20 Steve Hopper=20 07/17/2001 07:02 PM=20 =20 To:=01;=01;=01;=01; nick.tombs@shell.com.br, Johannes.Walzebuck@shell.com.b= r, Peter E=20 Weidler/Enron@EnronXGate=20 cc:=01;=01;=01;=01; Tony Henshaw/TRANSREDES@TRANSREDES, Fernando=20 Gonzalez/TRANSREDES@TRANSREDES, Doug Farmer/TRANSREDES@TRANSREDES, Jan van= =20 den Berg/TRANSREDES@TRANSREDES, John Naphan/TRANSREDES@TRANSREDES, John=20 Vega/TRANSREDES@TRANSREDES, Juan Callau/TRANSREDES@TRANSREDES, Don=20 Hawkins/Enron@EnronXGate, Nasim H Khan/TRANSREDES@TRANSREDES, Laine A=20 Powell/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT=20 Subject:=01;=01;=01;=01;=01;=01;=01; 17/7 - 7:00 p.m. - Update: Emergency= =20 The situation continues to be stable.=01; CLHB has reinitated LPG operatio= ns to=20 LaPaz, but continue their inspection.=01; TR will not reinitiate gas or cru= de=20 export operations until we have completed our inspection.=01; We have forme= d=20 joint teams with CLHB and Army personnel to perform the inspection.=01; It = could=20 take as long as 48 hours, but we'll have a better estimate after we get a= =20 progress report in the morning.=01;=01; All crews available systemwide are= =20 mobilizing for inspection of the entire system, but for now our priority=20 continues to be the lines in the altiplano.=01; The three stations in the= =20 altiplano have been shut down, bled off, and locked.=01; Other supervisors= =20 throughout the system have been advised and are on alert. Government and regulator continue to be supportive of our shut-down and=20 inspection action plan.=01; We have developed a contingency plan with COBEE= (the=20 regional electricity distributor) under which they will redistribute energy= =20 out of spare capacity in Cochabamba to LaPaz=01; - this should cover LaPaz'= s=20 electricity needs during the duration of time we need to complete our=20 inspection.=01; The only other significant consumer is a large cement plant= in=20 LaPaz.=01; We've agreed that they will slow down their operations, and prov= ide=20 only small, local supplies (industrial concrete demand will be shut-in). We did not send a press release on the issue, although we have received=20 inquiries - our response is that we are concerned about the risk to Bolivia= ns=20 this action presented, and we are performing an inspection on the system.= =01; We=20 are avoiding mention of gas stoppage to LaPaz at this time, due to the=20 volatility of the issue in LaPaz.=01; Government (VMEH, SIRESE) has agreed = with=20 the message. We expect that with the cement plant and power plant off-line, line pack= =20 should be sufficient to keep commercial demand satisfied for a few days.=01= ; In=20 either event, we are working with the local gas distributor to prepare a=20 notice for LaPaz newspapers instructing gas consumers in the area how to=20 safely shut-down and restart their equipment in the event that it becomes= =20 necessary. The most likely scenario as of now is that Edwin Morales - a local=20 revolutionary tied to the coca trade - is behind the action.=01; Morales ha= s had=20 contact in the past with the Raul Rocha bunch out of Chuquina (Oruro), so= =20 we're still not sure whether this was an act against TR and/or the industry= ,=20 or if it is against government.=01; Morales has just joined forces with ano= ther=20 rebel out of Cochabamba and is planning nationwide road blocks for tomorrow= .=01;=20 Their agenda is national - they've never isolated TR or our industry as a= =20 whole, although Chaco in the north have been targeted in the past, probably= =20 because they have a field in the middle of Morales' stronghold.=01; The=20 political situation here is tenuous with Banzer out and various political= =20 interests looking to fill the leadership void.=01; We're watching this situ= ation=20 closely.=01; The local Army brigade has committed to staying on vigilance f= or at=20 least the next few days - once we're comfortable with the operational=20 situation, we'll discuss a longer-term solution. Steve=20 ---------------------- Forwarded by Steve Hopper/TRANSREDES on 07/17/2001= =20 06:37 PM ---------------------------=20 Steve Hopper=20 07/17/2001 03:53 PM=20 =20 To:=01;=01;=01;=01; nick.tombs@shell.com.br, Johannes.Walzebuck@shell.com.b= r, Peter E=20 Weidler/Enron@EnronXGate=20 cc:=01;=01;=01;=01;=01;=20 Subject:=01;=01;=01;=01;=01;=01;=01; Emergency=20 =01;=01;=01;=01;=01;=01;=01; =01;=01;=01;=01;=01;=01;=01; At 1:45 p.m. today, a CLHB line walker discovered a bomb on their LPG line= =20 in the Altiplano 14 km from out SicaSica station.=01; Our OSSA II (crude ex= ports=20 to Chile) and GAA (gas to LaPaz) share the same ROW, and would likely have= =20 been taken out with the bomb.=01; We understand that the bomb, which had a= =20 manual fuse, did not go off, but had been lit and failed to explode.=01; Th= e=20 Army has been mobilized to diffuse the bomb, and we consider the immediate= =20 threat neutralized. However, given that we have now seen several attempts in the last 10 days = of=20 sabotage against our lines, I have declared a state of EMERGENCY, and will= =20 notify the Enron Crisis team. We have shut all Altiplano pipeline operations down, and have mobilized a= =20 joint CLHB/TR/Army team to perform vigilance on the entire altiplano=20 network.=01; The immediate result of this is that lights will likely start = to go=20 out in LaPaz within the next few hours - the GAA line is their primary powe= r=20 fuel supply.=01; I've notified all relevant government authorities of the= =20 situation, and so far am getting support.=01; I've also asked the Embassy t= o=20 look into the situation, with the understanding that if this is the result = of=20 an organized movement, they might have access to intelligence that could be= =20 helpful. Additionally, we've shut down all non-critical maintenance operations=20 throughtout the rest of the system, and are directing spare personnel to=20 perform vigilance on the remainder of the system as quickly as possible.=01= ;=20 Until and unless we have information that this threat goes beyond the=20 altiplano, we will continue operations, with all stations on alert.=01; We = will=20 kick off the the total system inspection within the next few hours, as soon= =20 as our people complete the overall plan. I will keep you posted as things develop.=20 Steve=20