Subject: FW: Pollution Liability Runoff Coverage
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Thu, 15 Nov 2001 14:11:56 -0800 (PST)

Jim Bouillion requested that you be copied in on the below email to Azurix.  Someone in Enron may want help Azurix make this decision.  Of course,  we are always available to answer questions for you.  

Earline Kendall

.

 -----Original Message-----
From: 	Kendall, Earline  
Sent:	Thursday, November 15, 2001 2:26 PM
To:	Anderson, Michael
Cc:	Dorsey, Tim; Ale, John
Subject:	Pollution Liability Runoff Coverage

As requested we have amended the quote for pollution runoff coverage.   Attached is a spreadsheet reflecting the two options you wanted to consider.

Option 1 - For the extension of the existing coverages for the 40 month period  - AIG quoted $340,000

Option 2- (48 month new PPL run-off  policy including products)
AIG has agreed to the price of $509,000 with a deductible of $100,000 for all claims except products liability which carries a $1Million deductible.  The $509,000 will be credited with a $85,000 pro rata premium refund from the current policy for a toal owed of $424,000.

The premium difference betwen the extension of the current policy with limited coverage (Option 1) to the new expanded coverage version  (Option 2) is $84,000

It is Risk Managements recommendation that Azurix go with Option 2 for the broader coverage.