Message-ID: <30055477.1075858907066.JavaMail.evans@thyme> Date: Wed, 18 Jul 2001 22:17:00 -0700 (PDT) From: michael.terraso@enron.com To: steven.kean@enron.com Subject: FW: 18/7 - 7:00 p.m. - Update: Emergency Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Michael Terraso X-To: Steven J Kean X-cc: X-bcc: X-Folder: \SKEAN (Non-Privileged)\Kean, Steven J.\Environmental Issues X-Origin: Kean-S X-FileName: SKEAN (Non-Privileged).pst 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