fyi
---------------------- Forwarded by Steven J Kean/NA/Enron on 07/19/2001 08:37 AM ---------------------------
From:	Michael Terraso/ENRON@enronXgate on 07/18/2001 07:17 PM

To:	Steven J Kean/NA/Enron@Enron

cc:	 

Subject:	FW: 18/7 - 7:00 p.m. - Update: Emergency

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