David,

I want to discuss Paul Henking's proposed strategy and Neale Gregson's 
comments with you today, if possible.  I'll give you a call later.  Thanks.

Britt
----- Forwarded by Britt Davis/Corp/Enron on 11/08/2000 06:08 AM -----

	Michael A Robison@ECT
	11/08/2000 02:14 AM
		 
		 To: Britt Davis/Corp/Enron@ENRON
		 cc: paul.henking@enron.com, Matthias Lee/SIN/ECT@ECT
		 Subject: pacific virgo contamination

Hi Britt:
Greetings from Singapore.  I'm slowly getting over my jet-lag.  It's great to 
be here and I'm looking forward to the rest of my stay.  On the Pacific Virgo 
front I wanted to forward to you Paul Henking's views to get your comments.  
Also, I talked to Neale Gregson today and he is very opposed to the selection 
of Mark Hamsher as the arbitrator since in his experience Mark has been a 
maverick and is not a lawyer. Neale believes we need a Queen's Counsel as an 
arbitrator. Neale will be discussing this issue with David Best tonight.  
Thanks again for that great lunch!
Best regards,
Mike
EB3859
(713) 853-6667 DID
(713) 646-4842 FAX

----- Forwarded by Michael A Robison/HOU/ECT on 11/08/00 03:39 AM -----

	Paul Henking
	11/08/00 03:19 AM
		 
		 To: Matthias Lee/SIN/ECT@ECT, Michael A Robison/HOU/ECT@ECT
		 cc: 
		 Subject: pacific virgo contamination


matt/mike,

tried to call matsuru/mitsubishi this afternoon but he was in a meeting. i 
will try later and let you know if i get hold of him.

in the meantime, i do have some concerns with mitsubishi taking us to 
arbitration for the outstanding frt and demurrage we owe on the pacific 
virgo. if this goes to arbitration, i am sure we will lose and have to pay 
the amounts due. i understand a decision has to be made before the end of 
this week.

of course, going to arbitration would give us the opportunity to present our 
claim for the contamination as a counter claim. however, i feel sure the 
arbitrators will say pay the freight/demurrage now and make the claim a 
separate issue.

from below, our insurance company has been advised of the contamination claim 
and i feel this is a valid claim. obviously, we loaded one spec which was in 
order and the vessel arrived with a different spec.  however, rather than 
going to arbitration and incurring additional expenses, i feel we should be 
letting the insurance company handle this with the owner's insurance company 

granted, with the insurance companies, this could, and probably would, take 
some time (1-2 years) and we may still not get money out of it if the owners 
can prove their position. however, going to arbitration may not be any more 
successful and would be final.

in summary, i would suggest paying the outstanding freight with advices to 
mitsubishi that we will turn our attention to the demurrage claim and revert 
by the end of the month. there is a big difference in going to arb for 
$760,000 vs. only $259,000. this advice would be without prejudice to our 
contamination claim which will now increase by the amount of the freight and 
the amount of the demurrage.

at the same time, we should advise the insurance company that we have been 
unsuccessful in negotiating any settlement by offset of freight and demurrage 
and request they proceed with the contamination claim against the owners. we 
can send them the letter legal/i sent to mitsubishi outlining our claim 
mentioning that this amount will now increase due to the freight and 
demurrage costs.

you may want to discuss this with britt davies but i see no way we will win 
on the freight payment issue if this goes to arbitration.

rgds


---------------------- Forwarded by Paul Henking/SIN/ECT on 08/11/2000 11:01 
---------------------------
Michael J Gasper   07/11/2000 22:34

To: Paul Henking/SIN/ECT@ECT
cc: Eric Tan/SIN/ECT@ECT, James P Studdert/HOU/ECT@ECT, Michael A 
Robison/HOU/ECT@ECT, Matthias Lee/SIN/ECT@ECT, Harry M Collins/HOU/ECT@ECT, 
Alan Aronowitz/HOU/ECT@ECT, john.h.harrison@enron.com 
Subject: pacific virgo contamination  

 
I have not been directly involved in this claim.  Talked to Jim Studdert this 
morning - underwriters have been notified of the claim, however claim is on 
hold pending settlement with vessel owners.  Suggest Singapore coordinate 
directly with Jim Studdert.




   
	Enron North America Corp.
	
	From:  Paul Henking                           11/06/2000 10:04 PM
	

To: Michael J Gasper/HOU/ECT@ECT
cc:  
Subject: pacific virgo contamination


mike,

in talking to eric, he says you have reported this claim to insurance. was 
just wondering where we stood on this matter as there are things going on 
over here.

as an update, mitsubishi is taking us to arbitration for the outstanding frt 
and demurrage which understand totals about $7-800,000. 

legal here has submitted a letter under my name claiming our damages are 
about $1.5-2.0 mil. we were trying to settle this claim but getting nowhere 
on this matter.

rgds