Subject: Project Pacific
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked]
Date: Wed, 8 Mar 2000 05:12:00 -0800 (PST)

Team
 Over lunch I received a voice mail from Salamon Smith Barney concerning 
EOTT's bid on the this package.  The silence since Monday spoke volumes and 
he confirmed that.  Jonathon Barrett stated that companies that were asked in 
were a "number of multiples higher than us" and he was NOT referring to 
EBITDA multiples BUT multiples of our overall value.  He indicated 
willingness to provide more color and how this played out and my return phone 
call found out he was travelling so I'll keep you posted on what I learn. 
 In an attempt to justify a price twice our offer, I had to 1) reduce DCF 
rate to 10%, 2) assume no taxes ongoing, 3) increase the staff reduction to 
75%, 4) add the volume gain at Texas City and 4) increase volumes to 250 
MBPD.  We were willing to explore 2 and 3 and even pay some for volumes over 
204 but I think our stretch number would be 200 or less.
 Anyway a good shot at a good package of assets that came up way short.  Once 
again, I appreciate your assistance on this project and look forward to 
working with you again.
 dwight