Britt

Please find below the answers to your queries re the AES shipment. Please do 
not hesitate to contact Harry or I if you need further information. David 
Minns (our in-house counsel) is actually on vacation until 2nd January 2001 
and is not on email during this time. You may also be interested to know that 
we understand Glencore (a fellow Australian coal trading company) has 
received a similar subpoena re trading with AES during this period. 

Enron Coal Asia Pacific Pty Ltd (ECAP) was the counterparty to this deal. 
ECAP sold to AES approx 60 000 metric tonnes of coal +/-10% as per the  
contract signed 7th September. (The effective date of the agreement was 10 
August 2000). The actually delivery amount was 54 152.35 metric tonnes a the 
cargo was loaded 3rd October 2000. ECAP is incorporated in Australia. 
The deal was negotiated by our Harry Papadopoulos and the contract signed 
here in Sydney by myself, Heidi Mason under delegated authority from  Stuart 
Staley. (My delegated authority is based on Stu's prior approval which in 
this case was received via email on 6th September 2000)
We have a copy of the contract here in Sydney, but as the coal was bought 
under LC and such LC was issued out of London, all shipping   documentation 
for this load was forwarded to London to the attention of Claire Veijou and 
Cornelia Luptowitsch. London office also issued the invoice  to AES on behalf 
of ECAP and this was done by Rebecca Millerchip or Maya Beyhem. 

Also, for your information, Harrry has prior travel plans that put him in 
China on the date of the hearing. While these could be changed, it would be 
less than desirable. Will it be necessary for the trader to be the Enron rep 
who appears on behalf of the company or could it ideally be someone from 
Houston (or London if needs be) simply because this is a long way to go for 
one appearance. John Bowman has resigned from Enron since the time this deal 
was done and therefore we have not advised him of this action. 

With thanks

Heidi Mason 
Chief Financial Officer
Enron Australia



	Britt Davis@ENRON
	14/12/2000 08:43 AM
		 
		 To: Harry Papadopoulos/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Heidi 
Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David 
Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc: Wayne Gresham/HOU/ECT@ECT, Robert Quick/LON/ECT@ECT, Richard B 
Sanders/HOU/ECT@ECT, Becky Zikes/Corp/Enron@ENRON
		 Subject: PT Kaltim Rima Coal v. AES Barbers Point/Third-party subpoena on 
Enron Coal Company

PRIVILEGED AND CONFIDENTIAL:  ATTORNEY-CLIENT COMMUNICATION, ATTORNEY WORK 
PRODUCT--URGENT

Harry, Heidi and David,

 The above-referenced lawsuit is filed in the Southern District of New York 
by PT Kaltim Rima Coal, who allegedly had a long-term coal purchase agreement 
with AES Barbers Point, for delivery to AES in Hawaii.  In brief, PT contends 
that AES breached that agreement through the use of a bogus force majeure 
letter, in order to allow AES to purchase coal from some Enron entity at a 
cheaper spot market price in September or October of this year.

 PT's attorneys, Lord, Bissell & Brook out of Chicago, have served us with a 
subpoena on Enron Coal Company.  How they decided that Enron Coal Company was 
the correct entity is not something I yet know.   I have been advised that 
Enron Coal Company is a long-dormant subsidiary of Enron Property.  Although 
using Enron Coal Company's name throughout, the subpoena also references 
Harry, Riaz Rizvi, Allen Childress, Stuart Staley and/or John Bowman.  I 
understand that we probably did do a deal (maybe more than one) with AES, but 
need to be corrected if I am wrong.

 The subpoena requests that a corporate representative for Enron Coal Company 
appear with documents on January 8 in Houston to be deposed about the deal 
with AES.

 I would like to respond tomorrow, by telefax, to PT's attorneys and advise 
that Enron Coal Company is the wrong company.  If all I do is stall them, 
however, they can yank the information from us the hard way (assuming that we 
did do the deal in question) and eventually get what they want.  The suit is 
for about $4,000,000, so it is worth the while of PT's attorneys to pursue 
this subpoena.  Accordingly, I need one of you to tell me as soon as possible 
whether 

 (a) we did such a deal with AES during the relevant time frame, and if so, 
the exact name of the Enron entity on the deal;

 (b) who the trader on the deal was; and,

 (c) who has the documents regarding the deal.

Although I have briefly described the information I need, I also need to get 
the name of the right person to telefax the subpoena to for review, to see 
how broad the scope of the request for documents/witnesses really is. 

I would greatly appreciate this preliminary information by the close of 
business tomorrow, Thursday, in London/Australia.  I apologize for the 
extremely short time frame.  I was only given this subpoena last Friday, and 
have spent the days since chasing people down.  Please don't shoot the 
messenger. 

Britt
 

----- Forwarded by Britt Davis/Corp/Enron on 12/13/2000 03:17 PM -----

	Stuart Staley@ECT
	12/13/2000 02:15 PM
		
		 To: Britt Davis/Corp/Enron@ENRON
		 cc: Robert Quick/LON/ECT@ECT, Wayne Gresham/HOU/ECT@ECT
		 Subject: Re: subpoena

Britt:

Harry Papadopoulos, Heidi Mason, or David Minns in our Sydney office should 
have originals of this documentation.

Thks,

Stu