Steve, fyi Mike Terraso

-----Original Message----- 
From: Hawkins, Don 
Sent: Wed 7/18/2001 5:29 PM 
To: Lowry, Phil; Terraso, Michael 
Cc: 
Subject: FW: 18/7 - 7:00 p.m. - Update: Emergency



FYI, 

Don 

;-----Original Message----- 
From: ; Steve Hopper/TRANSREDES@TRANSREDES@ENRON [ 
mailto:IMCEANOTES-Steve+20Hopper_TRANSREDES+40TRANSREDES+40ENRON@ENRON.com]; 
On Behalf Of Steve Hopper/TRANSREDES@ENRON

Sent:;; Wednesday, July 18, 2001 4:24 PM 
To:;;;; Hopper, Steve 
Cc:;;;; nick.tombs@shell.com.br; Johannes.Walzebuck@shell.com.br; Weidler, 
Peter E; Henshaw, Tony; Gonzalez, Fernando; Farmer, Doug; Berg, Jan van den; 
Naphan, John; Vega, John; Callau, Juan; Hawkins, Don; Khan, Nasim; Powell, 
Laine; NLIMBREI@shell.com.br; Marcelo.Menicucci@shell.com.br

Subject:;;;;;;; Re: 18/7 - 7:00 p.m. - Update: Emergency 


 We have completed the inspection of the GAA line to LaPaz, and everything 
looks OK.; We'll reinitiate gas flow tonight.; OSSA II should be completed 
tomorrow.; Army personnel continues to be patrolling the area, but things 
remain pretty calm, despite several areas in the country that are under 
roadblock by protesters.

 I'm going to keep things in emergency status until at least tomorrow, after 
today's roadblocks are lifted.; Will advise of any developments.

 Steve 




 Steve Hopper 
07/17/2001 07:02 PM 
  
To:;;;; nick.tombs@shell.com.br, Johannes.Walzebuck@shell.com.br, Peter E 
Weidler/Enron@EnronXGate 
cc:;;;; Tony Henshaw/TRANSREDES@TRANSREDES, Fernando 
Gonzalez/TRANSREDES@TRANSREDES, Doug Farmer/TRANSREDES@TRANSREDES, Jan van 
den Berg/TRANSREDES@TRANSREDES, John Naphan/TRANSREDES@TRANSREDES, John 
Vega/TRANSREDES@TRANSREDES, Juan Callau/TRANSREDES@TRANSREDES, Don 
Hawkins/Enron@EnronXGate, Nasim H Khan/TRANSREDES@TRANSREDES, Laine A 
Powell/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 

 Subject:;;;;;;; 17/7 - 7:00 p.m. - Update: Emergency 

 The situation continues to be stable.; CLHB has reinitated LPG operations to 
LaPaz, but continue their inspection.; TR will not reinitiate gas or crude 
export operations until we have completed our inspection.; We have formed 
joint teams with CLHB and Army personnel to perform the inspection.; It could 
take as long as 48 hours, but we'll have a better estimate after we get a 
progress report in the morning.;; All crews available systemwide are 
mobilizing for inspection of the entire system, but for now our priority 
continues to be the lines in the altiplano.; The three stations in the 
altiplano have been shut down, bled off, and locked.; Other supervisors 
throughout the system have been advised and are on alert.

 Government and regulator continue to be supportive of our shut-down and 
inspection action plan.; We have developed a contingency plan with COBEE (the 
regional electricity distributor) under which they will redistribute energy 
out of spare capacity in Cochabamba to LaPaz; - this should cover LaPaz's 
electricity needs during the duration of time we need to complete our 
inspection.; The only other significant consumer is a large cement plant in 
LaPaz.; We've agreed that they will slow down their operations, and provide 
only small, local supplies (industrial concrete demand will be shut-in).

 We did not send a press release on the issue, although we have received 
inquiries - our response is that we are concerned about the risk to Bolivians 
this action presented, and we are performing an inspection on the system.; We 
are avoiding mention of gas stoppage to LaPaz at this time, due to the 
volatility of the issue in LaPaz.; Government (VMEH, SIRESE) has agreed with 
the message.

 We expect that with the cement plant and power plant off-line, line pack 
should be sufficient to keep commercial demand satisfied for a few days.; In 
either event, we are working with the local gas distributor to prepare a 
notice for LaPaz newspapers instructing gas consumers in the area how to 
safely shut-down and restart their equipment in the event that it becomes 
necessary.

 The most likely scenario as of now is that Edwin Morales - a local 
revolutionary tied to the coca trade - is behind the action.; Morales has had 
contact in the past with the Raul Rocha bunch out of Chuquina (Oruro), so 
we're still not sure whether this was an act against TR and/or the industry, 
or if it is against government.; Morales has just joined forces with another 
rebel out of Cochabamba and is planning nationwide road blocks for tomorrow.; 
Their agenda is national - they've never isolated TR or our industry as a 
whole, although Chaco in the north have been targeted in the past, probably 
because they have a field in the middle of Morales' stronghold.; The 
political situation here is tenuous with Banzer out and various political 
interests looking to fill the leadership void.; We're watching this situation 
closely.; The local Army brigade has committed to staying on vigilance for at 
least the next few days - once we're comfortable with the operational 
situation, we'll discuss a longer-term solution.

 Steve 

 ---------------------- Forwarded by Steve Hopper/TRANSREDES on 07/17/2001 
06:37 PM --------------------------- 

 Steve Hopper 
07/17/2001 03:53 PM 
  
To:;;;; nick.tombs@shell.com.br, Johannes.Walzebuck@shell.com.br, Peter E 
Weidler/Enron@EnronXGate 
cc:;;;;; 

 Subject:;;;;;;; Emergency 

 ;;;;;;;  ;;;;;;;


 At 1:45 p.m. today, a CLHB line walker discovered a bomb on their LPG line 
in the Altiplano 14 km from out SicaSica station.; Our OSSA II (crude exports 
to Chile) and GAA (gas to LaPaz) share the same ROW, and would likely have 
been taken out with the bomb.; We understand that the bomb, which had a 
manual fuse, did not go off, but had been lit and failed to explode.; The 
Army has been mobilized to diffuse the bomb, and we consider the immediate 
threat neutralized.

 However, given that we have now seen several attempts in the last 10 days of 
sabotage against our lines, I have declared a state of EMERGENCY, and will 
notify the Enron Crisis team.

 We have shut all Altiplano pipeline operations down, and have mobilized a 
joint CLHB/TR/Army team to perform vigilance on the entire altiplano 
network.; The immediate result of this is that lights will likely start to go 
out in LaPaz within the next few hours - the GAA line is their primary power 
fuel supply.; I've notified all relevant government authorities of the 
situation, and so far am getting support.; I've also asked the Embassy to 
look into the situation, with the understanding that if this is the result of 
an organized movement, they might have access to intelligence that could be 
helpful.

 Additionally, we've shut down all non-critical maintenance operations 
throughtout the rest of the system, and are directing spare personnel to 
perform vigilance on the remainder of the system as quickly as possible.; 
Until and unless we have information that this threat goes beyond the 
altiplano, we will continue operations, with all stations on alert.; We will 
kick off the the total system inspection within the next few hours, as soon 
as our people complete the overall plan.

 I will keep you posted as things develop. 

 Steve