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From:david.grant@enron.com
To:richard.sanders@enron.com, coralina.rivera@enron.com, greg.curran@enron.com,federico.haeussler@enron.com
Subject:Bus incident - May 8, 2001 - Ponce de Leon Ave., Santurce, Puerto
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Date:Thu, 17 May 2001 07:13:00 -0700 (PDT)

Cc: charles.cheek@enron.com, lisa.robichaux@enron.com, rob.cole@enron.com
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On May 8, 2001, in greater San Juan, Puerto Rico, a San Juan Metro bus
dropped into a hole that had been excavated by a work crew from San Juan Gas
Company. The hole had been excavated by a San Juan Gas crew (or contract
labor) under the supervision of a San Juan Gas operations supervisor as part
of the project in which new plastic gas pipe and fiber optic conduit were
being inserted into a portion of the existing San Juan Gas distribution
system.

At the request of Risk Management, the Litigation Unit engaged local counsel
and a local investigator for the purpose of obtaining the details of the
incident. Initial reports indicate that at approximately 5:00 pm on May 8,
the rear wheels of a Metro bus dropped into the excavation described above.
The bus was traveling in a contra-flow bus lane and apparently struck and
damaged three private vehicles as a result of the incident.

The incident also caused personal injury to the bus driver, some passengers
and others. The bus driver and two passengers were taken to the hospital, but
do not appear to be seriously injured. The driver complained of being
overcome by the fumes of the diesel fuel that was spilled from the fuel tank
of the bus. An elderly male passenger was thrown form his seat and may have
injured his ribs. A 9 year old girl received a contusion to her forehead.
Additionally, approximately 20 other individuals claimed to have been
passengers on the bus and complained to the police of injuries. None required
immediate hospital treatment.

The facts obtained to date, indicate that the hole was excavated by the San
Juan Gas crew (as part of the insertion program mentioned above) in the bus
lane as allowed by permit on April 30, 2001. The hole was not filled on that
date, but was left with a large, heavy steel plate over it so that further
work could be done. Between April 30 and May 8, the hole remained unfilled
with the steel plate covering it and some further work may have been
undertaken. The hole was filled in shortly after the incident.

In light of the facts that have been obtained, it is the view of Risk
Management that the incident is a covered event and is, therefore, an insured
matter. They wish to proceed immediately to address the personal injury and
property claims in an effort to obtain an efficient resolution of such claims
before suits are brought and the cost of litigation is incurred. Based on the
facts of this incident and our litigation experience in San Juan, the
Litigation Unit concurs with the desire of Risk Management to seek an
expedited resolution of the claims that will arise out of this incident.

Risk Management has made arrangements with a local claims adjuster, in
conjunction with our local counsel, to undertake the task of resolving the
claims. Since the goal is to resolve the claims before litigation, Risk
Management is prepared to initiate the process on Monday, May 21, and will do
so, unless an objection is received. If you have an objection or wish to have
further information, simply respond to this email.

Thank you for your attention to this matter.