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Enron Mail |
Martin
How is it going? I don't want to make this a big deal, (quite frankly you = and me have better things to spend our time on, and the dollar amount relat= ing to these cuts is trivial) but with respect to cuts in the future I thin= k it is important that we teach the people underneath us the correct way to= handle these issues, so that in the future we do not have to be involved. = Below is a quick dialog that Greg Johnston and I have had with respect to = the cuts and what we can and can not do. This seems to be blown way out of proportion by Kevin Heal and if there is = anything I can do to make this GO AWAY please let me know. Thanks, Jon=20 -----Original Message----- From: =09Johnston, Greg =20 Sent:=09Friday, July 20, 2001 8:37 AM To:=09Mckay, Jonathan Subject:=09RE: ENA-ECC Force Majeure No. If they declare FM against us, the operative wording in the agreement = is "to the extent that they are affected by such event". In other words, t= hey can only cut a deal to the extent the force majeure prevents them from = performing. -----Original Message----- From: =09Mckay, Jonathan =20 Sent:=09Friday, July 20, 2001 9:29 AM To:=09Johnston, Greg Subject:=09RE: ENA-ECC Force Majeure Greg, Do they have any right to cut a deal by more than the amount that the pipel= ine declared as its force majure volume? Jon McKay Unemployed phone: 403-974-6733 jonathan.mckay@enron.com -----Original Message----- From: =09Johnston, Greg =20 Sent:=09Friday, July 20, 2001 8:11 AM To:=09Heal, Kevin Cc:=09Mckay, Jonathan Subject:=09ENA-ECC Force Majeure Kevin, further to your voice-mail, as indicated to you yesterday, our physi= cal gas master agreement with ENA is in their form of Enfolio master agreem= ent and not our form of master. What that means is that, although the mech= anics of declaring force majeure, etc. are the same, the definition of forc= e majeure under our Enfolio master with ENA is not restricted to delivery p= oint force majeure as it is in ECC's standard form, but is rather a broader= based force majeure. However, it must be kept in mind that, depending on = the transaction, the definition of "force majeure" may be amended in the te= rms of the particular confirmation letter. The application section (which = is basically the same as in our form) is as follows: This Article 5 is the sole and exclusive excuse of performance permitted un= der this Agreement, and all other excuses at law or in equity are waived to= the extent permitted by law. Except with regard to payment obligations, i= n the event either Party is rendered unable, wholly or in part, by Force Ma= jeure to carry out its obligations hereunder, it is agreed that upon such P= arty's giving notice and full particulars of such Force Majeure to the othe= r Party as soon as reasonably possible (such notice to be confirmed in writ= ing), the obligations of the Party giving such notice, to the extent that t= hey are affected by such event, shall be suspended from the inception and d= uring the continuance of the Force Majeure for a period of up to 60 Days in= the aggregate during any 12 Month period, but for no longer period. The P= arty receiving notice of Force Majeure may immediately take such action as = it deems necessary at its expense for the entire 60 Day period or any part = thereof. The Parties expressly agree that upon the expiration of the 60 Da= y period Force Majeure shall no longer apply to the obligations hereunder a= nd both Buyer and Seller shall be obligated to perform... I will send a copy of the agreement over to you which also contains the def= inition of Force Majeure, but again it must be remembered that such definit= ion may be amended in the particular confirm. Greg Johnston Senior Counsel Enron Canada Corp. phone: 403-974-6745 greg.johnston@enron.com
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