LNG Contract Questions

In reviewing the contracts, so far I have the following questions:

1. Have Oman LNG and ADgas taken the risk of non-performance by DPC and
indirectly MSEB without any credit support? The only security is the equity
in DPC? Are such contracts typically secured or done with a buyer with deep
pockets? How much value was put into DPC by the shareholders?

2. Are there local public policy issues that could be addressed by local
courts with respect to the LNG contracts? Fraud? Bribery? Are there any
local law issues with respect to performance or interpretation of the
contracts? Isn't take-or-pay meaningless without credit support?

3. What are the arguments for DPC to terminate the contracts? Only where
the PPA is terminated? Payments?

4. Who negotiated the contracts? Were there requests for credit support?
From Enron? Did Enron ever promise to indirectly "backstop" the contracts by
its investment in Dabhol?

5. What was the discussion regarding the "reduction in operational
capability" language in the contracts? What was the language meant to
cover? Do we need our counterparty's approval to investigate other markets?

6. Is there any argument that DPC has already breached the contracts?
Could our counterparties issue a press release claiming damages over the
entire term of the contract? Confidentiality and press releases?