Tom - another strike thrown at the entrenched players!  Keep this up and you 
guys will control every transportation asset in the UK.

I am looking forward to moving our transportation business into continental 
Europe and South Africa. 

 Congratulations to you and your team.  Keep the pressure on.

George




Tom Kearney
09/01/2000 12:26 PM
To: Stuart Staley/LON/ECT@ECT, George McClellan/HOU/ECT@ECT
cc: Stephen Pirozzi/LON/ECT@ECT, John Moran/LON/ECT@ECT, Riaz 
Rizvi/LON/ECT@ECT, Pierre Aury/LON/ECT@ECT, Chris Connelly/LON/ECT@ECT, 
Tiffany Cochran/LON/ECT@ECT, Elizabeth McCarthy/LON/ECT@ECT, Jez 
Peters/LON/ECT@ECT, Peter Bradley/LON/ECT@ECT, Lisa Kent/LON/ECT@ECT, Scott 
Longmore/LON/ECT@ECT, Kenny Nicoll/LON/ECT@ECT, Candace Parker/LON/ECT@ECT, 
Cornelia Luptowitsch/LON/ECT@ECT, John Sherriff/LON/ECT@ECT, Michael R 
Brown/LON/ECT@ECT, Paul Chivers/LON/ECT@ECT, Robert Quick/LON/ECT@ECT, Tani 
Nath/LON/ECT@ECT, Olivier Herbelot/LON/ECT@ECT, Anne Edgley/LON/ECT@ECT, 
Moises Woll/LON/ECT@ECT, Otto Von Schwerin/LON/ECT@ECT, Dale 
Surbey/LON/ECT@ECT, Steve W Young/LON/ECT@ECT, Matthew Landy/OSL/ECT@ECT, 
Samuel Grossman/LON/ECT@ECT, James Sandt/LON/ECT@ECT, Mahesh 
Lakhani/LON/ECT@ECT, Angie Collins/HOU/ECT@ECT, Matthew Arnold/HOU/ECT@ECT, 
Meindert Witteveen/LON/ECT@ECT, Mark Schroeder/LON/ECT@ECT, Paul Dawson/Govt. 
Affairs/LON/ECT@ECT, Andrew Morrison/LON/ECT@ECT 
Subject: SIGNED: Redcar Throughput Services Agreement


On August 31 (yesterday) we signed an Agreement with Corus UK Limited 
(formerly British Steel) for Throughput Services at the Redcar Facility in 
northeastern England.  

In exchange for a UKo2.5 million prepay to cover the cost of 750,000 tons of 
planned imports to Redcar, the deal gives Enron:

the right but not the obligation to import up to all available third party 
capacity (ca. 2 million tons per year) at the Redcar Facility for a term of 5 
years;
through an incentivised price schedule, a throughput rate that falls with 
each vessel which passes through the facility;
a price schedule that is not adjusted for inflation during the entire 5 year 
contract term;  
the unrestricted right to resell any or all slots to third parties during the 
5 year contract term;

Coupled with our recent deal with Immingham (5 years of free options for the 
full coal import capacity at new HIT Terminal), Enron Coal Services has a 
unique and unrivalled position in ports and rail vis-a-vis all the major UK 
coal importers.   Together with the recent Freightliner deal, Enron has 
constructed the lowest cost and longest term "Coal Pipeline" to the major UK 
coal-fired generators (pls. see attached map)

As a result, Enron is currently the only coal supplier in the UK with:

5 year call options on the available capacity of Redcar and HIT, the two most 
important coal import facilities in the UK;
the ability to provide competitive rail to our customers from Redcar and 
Immingham. 

We have opted not to publicise this transaction in order not to spook our 
current and potential clients in the Aire and Trent Valleys.   We would 
prefer the market to continue to think that we are offering aggressive 
multi-year delivered coal prices "because we just don't know what we are 
doing."  Thanks for keeping this quiet.  

Many thanks to Steve Pirozzi, John Moran, Pierre Aury, Cornelia Luptowitsch, 
Chris Connelly, Robert Quick, Matt Arnold, Stu Staley and the entire Enron 
Coal Team!