Subject: Re: Citgo pipeline claim
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Fri, 19 May 2000 01:39:00 -0700 (PDT)

I would be happy to take this over. I am out of town today and Monday. Lets 
set up a conference call on Tues. Twanda will call you to set it up.

	Kenton Erwin@ENRON COMMUNICATIONS
	05/16/2000 07:26 PM
		 
		 To: Richard B Sanders/HOU/ECT@ECT
		 cc: 
		 Subject: Citgo pipeline claim

Richard, my larger projects are peaking right now, and Kristina suggested 
that I ask you whether you would like to manage this matter.  

A Citgo gasoline pipeline was ruptured by our subcontractor (Wilde 
Construction) last May, near Luling TX.  Citgo has incurred aprox. $700k of 
cleanup costs.   We believe the costs should be shared by Citgo (for failing 
to correctly mark the line), Wilde (for negligently striking the line), and 
Bechtel ( for not being present as our construction manager, knowing that 
Wilde was working near the gasoline line).  The new complication:  The spill 
may prevent the proposed buyer from purchasing the 1000-odd acres parcel 
affected by the spill.  If that purchase doesn't go through, the attorney for 
the Mexican national landowner told me that the mortgage on the land would be 
foreclosed, and the landowner would bring an action for the lost purchase 
price ($1.3MM) (which I doubt he could fully recover, since he could sell the 
property for some lesser amount).

I am setting up a mediation (of Citgo, Bechtel, and Wilde), where John Odam 
(our atty, with Mangham Hardy) would act as mediator.  The new info about the 
land claim may change that strategy.

Would you like to manage this, or be somewhat involved, or not involved?

Thanks,

Kenton