-----Original Message-----
From: 	Staley, Stuart  
Sent:	Tuesday, November  13, 2001 7:35 AM
To:	Mason, Heidi
Cc:	Minns, David; Quilkey, Paul; Mcclellan, George
Subject:	RE: ECAP Directors

It strikes me that this is all getting a bit rediculous.  If you need ECAP deals signed, George McClellan or I can sign by fax.  I don't want Paul McPhee to sign as resident director until he has been around for a while.  At present, Jez would be the most qualified in Sydney.

What problem are you trying to solve here?  ECAP obligations require cash from the parent  - do you think Paul McPhee is going to have a better idea about the parent company's solvency than you will?  Houston (i.e. the parent company) is telling us business as usual - do you feel that Shankman's approval is not enough for you to fulfill your duties to the Australian entity?  Please clarify, as this seems to be making everything exceedingly difficult.

Thanks,

Stu

 -----Original Message-----
From: 	Mason, Heidi  
Sent:	13 November 2001 00:43
To:	Staley, Stuart
Cc:	Minns, David
Subject:	RE: Bengalla Biz

Stu

Prior to this particular issue of today, I had discussed with Melissa and intended to email you this week on the idea of Paul McPhee taking over as the resident director of ECAP. As you would remember, the only reason I had the role was the need for a resident to have the role and issues at the time with the only qualifier on the desk. Clearly it will be far efficient for all involved to have someone closer to the business in the role and also a better control as he will be far more familiar with the deals. 

Please let me know if this does not suit, otherwise I will have one of our lawyers do the paperwork when Paul starts next week.

Regards

Heidi

 -----Original Message-----
From: 	Minns, David  
Sent:	Tuesday, 13 November 2001 10:52 AM
To:	Peters, Jez; Suttle, John; Miyai, Tark; Mason, Heidi
Cc:	Skinner, Fiona; Bauer, Adam; Bradford, William S.; Nimmo, Matthew; Mcclellan, George; Staley, Stuart; Shankman, Jeffrey A.; Kitchen, Louise
Subject:	RE: Bengalla Biz

Jez our concerns are not just an internal approval issue. Under Australian Law the Directors of ECAPPL need to be satisfied when a company incurs a debt that it can be paid. Failure to discharge this duty can mean the directors would be personally for the debt. If the Coal Group is comfortable to make to enter into these commitments   then that is the obvious way forward. One of the Coal Group in the Sydney office (presumably Paul McPhee) could replace Heidi Mason as resident director.                    

 -----Original Message-----
From: 	Peters, Jez  
Sent:	Tuesday, 13 November 2001 9:33 AM
To:	Suttle, John; Miyai, Tark; Minns, David; Mason, Heidi
Cc:	Skinner, Fiona; Bauer, Adam; Bradford, William S.; Nimmo, Matthew; Mcclellan, George; Staley, Stuart; Shankman, Jeffrey A.; Kitchen, Louise
Subject:	RE: Bengalla Biz

We seem to be going round in circle's here and hence hopefully all the relevant people are now on copy of this e-mail so we can resolve swiftly. This cargo is due to be shipped in seven days with the coal already being railed to port. It is coal which will be shipped to service European commitments and represents the cheapest way to do so taking all costs into account (including financing). Needless to say if we pull out of this deal at this stage it will have huge ramifications with our customer and send all the wrong signals to our counterparties in this part of the world. Last but not least we will need to look elsewhere to procure coal for these European sales at what is likely to be a higher price.

Appreciate the green light.

Thks
Jez

 -----Original Message-----
From: 	Suttle, John  
Sent:	Tuesday, 13 November 2001 9:21 AM
To:	Miyai, Tark; Minns, David; Mason, Heidi
Cc:	Peters, Jez; Skinner, Fiona; Bauer, Adam; Bradford, William S.; Nimmo, Matthew
Subject:	RE: Bengalla Biz

It has been made clear to me that Jeff Shankman needs to clear this transaction through Bill Bradford and Louise Kitchen prior to any capital going out the door.  It is my understanding that this has not been done.

John

 -----Original Message-----
From: 	Miyai, Tark  
Sent:	Monday, November 12, 2001 4:13 PM
To:	Minns, David; Mason, Heidi; Suttle, John
Cc:	Peters, Jez; Skinner, Fiona; Bauer, Adam
Subject:	FW: Bengalla Biz

David,

See below Jeff Shankman's ok to proceed as usual.
Tax has come back with ok. Coal is being delivered to port.
Bengalla has oked to our draft as well.

Pls review and comment asap.

Credit, any comment on Bengalla?

Tark
 -----Original Message-----
From: 	Staley, Stuart  
Sent:	Tuesday, November 13, 2001 2:57 AM
To:	Peters, Jez; Miyai, Tark; Pielop, Stuart; Skinner, Fiona
Subject:	FW: Bengalla Biz

FYR...

 -----Original Message-----
From: 	Shankman, Jeffrey A.  
Sent:	12 November 2001 15:02
To:	Mcclellan, George
Cc:	Price, Brent A.; Staley, Stuart
Subject:	RE: Bengalla

I would proceed as business as usual.

 -----Original Message-----
From: 	Mcclellan, George  
Sent:	Monday, November 12, 2001 8:59 AM
To:	Shankman, Jeffrey A.
Cc:	Price, Brent A.
Subject:	FW: Bengalla


Guys - we need to address this - can we discuss during our lunch meeting today.
 -----Original Message-----
From: 	Staley, Stuart  
Sent:	Monday, November  12, 2001 5:05 AM
To:	Mcclellan, George
Cc:	Bradley, Peter; Maley, Paul
Subject:	FW: Bengalla


George:

Details on the cargo we are loading out of Newcastle.  Sailing time is roughly 45 days.  Cargo to be sold to ARA/German customers, most with payment terms 5 days post delivery.  Also - it would help to get an idea of how diificult this exercise will be in the coming months, as we have a couple more loading before year end.

Work it,

Stu



 -----Original Message-----
From: 	Miyai, Tark  
Sent:	12 November 2001 02:12
To:	Staley, Stuart; Bradley, Peter
Cc:	Peters, Jez
Subject:	Bengalla

Stu,

I refer to your e-mail to Jez last week and advise you the expected payment value and timing etc.

Vessel name:	MV "Cotsworld"
ETA:		21/Nov 
ETS:		22/Nov
Loading tonnage: approx. 128kmt (9kmt from Stratford and 119kmt from Bengalla)
Payment value and timing :	
		Value		Timing	
 Bengalla:	US$3.3mil(*)	19th (**)
 Stratford:	US$0.2mil(*)	26th  		

* Inclusive of 10% GST
** Bengall has already delivered 49kmt of coal to port and will complete the delivery on 15th. 
The contract is based on FIS and the invoice weight and quality be determined by the inbound analysis while they take des/dem risk.
Because of their concern over our credit Bengalla has insisted on our payment by TT against the presentation of documents. Docs are likely to be 
presented on 16th or 19th at the latest. 

The draft contract which Bengalla has confirmed has a provision that the invoice weight is determined based on B/L quantity instead of inbound rail weight 
if we take 100% of Bengalla coal onto our vessel. If we do that, they can not present their docs until the vessel has compeleted the loading and our payment date would be say 26th instead.

Regards,


Tark