Message-ID: <13309874.1075846017225.JavaMail.evans@thyme> Date: Tue, 8 May 2001 11:21:00 -0700 (PDT) From: kay.mann@enron.com To: john.rigby@enron.com Subject: Re: Who delivers LM6000s from GE Facility to Site Cc: john.ayres@enron.com, randy.pais@enron.com, dgohlke@skadden.com, armando.lucio@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: john.ayres@enron.com, randy.pais@enron.com, dgohlke@skadden.com, armando.lucio@enron.com X-From: Kay Mann X-To: John G Rigby X-cc: John R Ayres, Randy Pais, dgohlke@skadden.com@ENRON_DEVELOPMENT, Armando Lucio X-bcc: X-Folder: \Kay_Mann_June2001_3\Notes Folders\Sent X-Origin: MANN-K X-FileName: kmann.nsf This gives you the gist of it. Since it was a GE generated letter I will need to check for the final hard copy. John G Rigby@ENRON_DEVELOPMENT 05/08/2001 05:40 PM To: John R Ayres/NA/Enron@ENRON, Randy Pais/Corp/Enron@Enron, dgohlke@skadden.com cc: Kay Mann/Corp/Enron@Enron, Armando Lucio/ENRON@enronXgate Subject: Re: Who delivers LM6000s from GE Facility to Site 1.0 John A and Armando. My question and John's response has led me down the following merry chase: The LM6000 contract has GE keeping risk of loss and damage until delivery to the Delivery Point. The Delivery Point is Jacinto Port. Without any other documents, GE has delivered the equipment and Risk of Loss and Damage is Brazilian Trust's. I understand that some deal was cut in a letter that Ben Jacoby sent to GE where GE keeps the ROL while in storage, but there are some storage costs. (Note:) We have a very painful experience on a turbine from another vendor where the point and time of transfer of risk of loss is a central issue to a dispute at hand.) I think we need clear documentation making it clear that GE has ROL for the equipment until we take it out of storage. As it relates to NEPCO if I understand it correctly the risk of loss chain is as follows: GE delivers to the Jacinto port where Risk of loss transfers to Brazilian Trust, Brazilian Trust delivers to the port and keeps risk of loss until Ex Terra, at which point risk of loss under the Turbine Purchase Agreement transfers to NEPCO, but under the EPC contract SFE assumes risk of loss at ExTerra. Thus NEPCO does not have a risk of loss exposure. I can see how NEPCO transports from Exterra to the Site under the EPC contract and is protected by clause 8.1 of the EPC Contract. Under what authority is NEPCO transporting the equipment from the GE delivery point to Exterra, has Brazilian Trust engaged NEPCO to do so? The Turbine Purchase Agreement does not contemplate this. 2.0 David Gohlke- I think we have a small hole that needs and can be easily filled. In the Turbine Purchase Agreement, can we have NEPCO perform transport service from the GE delivery point to Exterra but BT keeps ROL. 3.0 I think from a GE perspective, the Enron family takes ROL from GE at Jacinto port and gets the turbines delivered to the Site. 4.0 Kay Mann - I really need a copy of the Ben letter- we start moving equipment shortly- I need to make sure that the ROL issue with GE is adequately covered. John R Ayres@ENRON 05/08/2001 08:53 AM To: John G Rigby/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Pamela K Blande/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Armando Lucio/Enron@EnronXGate Subject: Re: Who delivers from Houston to Brazil John, call Pam Blande for the exact details. It is a custom broker by the name of Fritz, but she will gladly give you the details. NEPCO via a sub-contract moves the material out of the GE storage, to the ship, load on the ship, ocean shipment, unloading at Sepitiba, transport to the site, custom clearance, and then NEPCO unloads from the heavy hauller onto the pads. Pam has all of the details. John John G Rigby@ENRON_DEVELOPMENT 05/07/2001 06:01 PM To: John R Ayres/NA/Enron@Enron cc: Subject: Who delivers from Houston to Brazil Who transports from Houston to Brazil, GE, SFE, Brazil Trust or NEPCO. Have we elected the Option to have GE deliver to the Site?