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From:jeffrey.keeler@enron.com
To:james.prentice@enron.com, stanley.horton@enron.com, ted.robinson@enron.com,michael.robison@enron.com, stephen.swain@enron.com, lou.potempa@enron.com, micha.makowsky@enron.com, michael.terraso@enron.com, rick.craig@enron.com, marc.phillips@enron.com,
Subject:Maine Lawsuit
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Date:Fri, 3 Mar 2000 05:20:00 -0800 (PST)

PM-ME--MTBE Lawsuit, Bjt,600
Associated Press

Friday, March 3, 2000

Judge rejects class-action status for MTBE lawsuit
By MICHELLE EMERY=
Associated Press Writer=

PORTLAND, Maine (AP) _ A judge has ruled not to give
class-action status to a lawsuit a handful of Maine well owners filed
against the makers of the gasoline additive MtBE.

Cumberland County Superior Court Justice Roland A. Cole ruled
Thursday that the suit should not encompass all Maine well owners. He
said there are too many different ways that MtBE, or methyl tertiary
butyl ether, can cause well contamination, such as through spills or
leaking underground tanks.

Cole ruled that the lawsuit the five homeowners filed against
the manufacturers does not adequately encompass the MtBE concerns of
all well owners.

Cole wrote in his ruling that the plaintiffs' decision to
exclude personal injury cases and claims against ``actual spillers''
could preclude class members with contaminated wells from suing for
other damages. He added that class members whose wells have lower
levels of MtBE would be barred from receiving damages to clean up
their wells.

``I think it's a mistake, and it doesn't quite hold up under
real world facts,'' said the plaintiffs' lawyer, Jon Hinck.

``Well owners in the state of Maine are going to have to proceed on
their own to get their well-water tested for MtBE contamination, and
pursue their own legal remedies,'' he said.

Plaintiffs sought to have the Atlantic Richfield Co., the Arco
Chemical Co. and the Lyondell Chemical Co., manufacturers of MtBE, pay
to test 250,000 wells in Maine for MtBE contamination and to
clean up any contamination found. They say the companies failed to
warn about water contamination dangers and exaggerated air-quality
benefits.

The defendants argue that state and federal environmental
officials knew about the risk MtBE posed to groundwater. They decided
the clean-air benefits of gasoline reformulated with high levels of
MtBE outweighed contamination concerns, defense lawyer William Kayatta
said.

Kayatta said testing and cleanup would cost more than $15
million.

``The court recognized that these were at best novel and
untested claims,'' Kayatta said.

``The court recognized that the plaintiffs were hoping to hold the
manufacturers liable for contamination of their wells regardless of
the fact that the contamination and spills were caused by others, and
we thought that was unfair,'' he said.

The defendants' next move will be to file a motion to dismiss
the lawsuit, Kayatta said.

``We don't think there is any basis, and now that's the issue,'' he
said.

Hinck said he was encouraged by Cole's statement in his ruling that
MtBE contamination is a problem.

``Their cases are viable, and they're going forward,'' he said,
adding that other individual well owners may join the lawsuit.

Hinck is assisting with a similar effort in North Carolina, where
well owners are trying to get class-action status for a lawsuit
against oil companies.

MtBE, a possible carcinogen, moves more quickly through soil and
water than other components of gasoline. Long-term exposure has caused
cancer in lab animals, but there is not enough data to say whether it
also will cause cancer in humans. Its use was mandated in 16 states as
a way to cut down on air pollution.

Maine stopped using reformulated gasoline with high levels of MtBE
last May, after state studies found about 15 percent of wells tested
had been contaminated with the additive. Residents in several other
states, including New Hampshire, New Jersey, California and
Connecticut, also have grown concerned about MtBE contamination.


AP-ES-03-03-00 0219EST