This gives you the gist of it.  Since it was a GE generated letter I will 
need to check for the final hard copy.






John G Rigby@ENRON_DEVELOPMENT
05/08/2001 05:40 PM
To: John R Ayres/NA/Enron@ENRON, Randy Pais/Corp/Enron@Enron, 
dgohlke@skadden.com
cc: Kay Mann/Corp/Enron@Enron, Armando Lucio/ENRON@enronXgate 

Subject: Re: Who delivers LM6000s from GE Facility to Site  

1.0  John A and Armando.

My question and John's response has led me down the following merry chase:

The LM6000 contract has GE keeping risk of loss and damage until delivery to 
the Delivery Point.   The Delivery Point is Jacinto Port.   Without any other 
documents, GE has delivered the equipment and Risk of Loss and Damage is 
Brazilian Trust's.   I understand that some deal was cut in a letter that Ben 
Jacoby sent to GE where GE keeps the ROL while in storage, but there are some 
storage costs.

(Note:) We have a very painful experience on a turbine from another vendor 
where the point and time of transfer of risk of loss is a central issue to a 
dispute at hand.) 

I think we need clear documentation making it clear that GE has ROL for the 
equipment until we take it out of storage.

As it relates to NEPCO if I understand it correctly the risk of loss chain is 
as follows: GE delivers to the Jacinto port where Risk of loss transfers to 
Brazilian Trust,  Brazilian Trust delivers to the port  and keeps risk of 
loss until Ex Terra, at which point risk of loss under the Turbine Purchase 
Agreement transfers to NEPCO, but under the EPC contract SFE assumes risk of 
loss at ExTerra.  Thus NEPCO does not have a risk of loss exposure.  

I can see how NEPCO transports from Exterra to the Site under the EPC 
contract and is protected by clause 8.1 of the EPC Contract. 

 Under what authority is NEPCO transporting the equipment from the GE 
delivery point to Exterra, has Brazilian Trust engaged NEPCO to do so?  The 
Turbine Purchase Agreement does not contemplate this.

2.0  David Gohlke-  I think we have a small hole that needs and can be easily 
filled.  In the Turbine Purchase Agreement, can we have NEPCO perform 
transport service from the GE delivery point to Exterra but BT keeps ROL.

3.0 I think from a GE perspective,  the Enron family takes ROL from GE at 
Jacinto port and gets the turbines delivered to  the Site.  

4.0  Kay Mann - I really need a copy of the Ben letter- we start moving 
equipment shortly- I need to make sure that the ROL issue with GE is 
adequately covered.



	John R Ayres@ENRON
	05/08/2001 08:53 AM
		
		 To: John G Rigby/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc: Pamela K Blande/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Armando 
Lucio/Enron@EnronXGate
		 Subject: Re: Who delivers from Houston to Brazil

John, call Pam Blande for the exact details.  It is a custom broker by the 
name of Fritz, but she will gladly give you the details.  NEPCO via a 
sub-contract moves the material out of the GE storage, to the ship, load on 
the ship, ocean shipment, unloading at Sepitiba, transport to the site, 
custom clearance, and then NEPCO unloads from the heavy hauller onto the pads.
Pam has all of the details.
John



John G Rigby@ENRON_DEVELOPMENT
05/07/2001 06:01 PM
To: John R Ayres/NA/Enron@Enron
cc:  

Subject: Who delivers from Houston to Brazil

Who transports from Houston to Brazil,    GE, SFE, Brazil Trust or NEPCO.  
Have we elected the Option to have GE deliver to the Site?