Enron Mail

From:richard.sanders@enron.com
To:britt.davis@enron.com
Subject:Re: DOJ Royalty Inquiry
Cc:
Bcc:
Date:Tue, 22 Jun 1999 07:26:00 -0700 (PDT)

ECT is willing to pay 25%,but we will not agree to pick up any of EOTT's
share.
---------------------- Forwarded by Richard B Sanders/HOU/ECT on 06/22/99
02:24 PM ---------------------------


Walt Zimmerman@EOTT
06/11/99 07:28 PM
To: Britt Davis/Corp/Enron@ENRON
cc: Richard B Sanders/HOU/ECT@ECT@ENRON, Steve Williams/EOG/Enron@Enron,
Bonnie White/Corp/Enron@Enron, Robert Vote/Corp/Enron@Enron, Michael
Moran/ET&S/Enron@Enron, Brenda McAfee/Corp/Enron@Enron, Shirley
Davey/Corp/Enron@Enron, Steve Duffy/Houston/Eott@Eott, ctetrault@velaw.com
Subject: Re: DOJ Royalty Inquiry

Britt, I did receive a copy of the V&E invoice, but EOTT has not agreed to a
25% cost allocation for this matter. EOTT is not a party to any of the
contracts involving the "sample leases" that are referenced in the subpoena,
and the subpoena does not appear to be directed to the types of business that
are conducted by EOTT. As indicated in memos from Charles Tetrault, the
document requests are focused on EOG and ECT. EOTT is not going to pay 25%
of the legal fees associated with EOG's and ECT's response to this subpoena.

I do not have a problem with paying 25% of this first bill ($1,250.79),
because it was worth $1,250.79 to learn that EOTT probably will not have to
provide any documents that are responsive to this subpoena. However, until
someone can convince me that the DOJ is actually interested in some EOTT
transactions, I will not advise EOTT to contribute more than 5% to this
effort in the future. If we cannot agree on an allocation to EOTT that is
less than 5%, then EOTT will need to make separate arrangements with respect
to the minimal representation that it will apparently require with respect to
this matter.

Of course, should circumstances change such that EOTT becomes a focus of this
investigation, then we would be willing to pay a greater share of these legal
fees. Currently, however, EOTT transactions do not appear to be of interest
to the DOJ, and EOTT should not be allocated 25% of the legal fees associated
with responses by other Enron affiliates to this subpoena.

Please call me next week so that we may discuss EOTT's participation in this
matter.



Britt Davis@ENRON
06/09/99 10:09 AM
To: Richard B Sanders/HOU/ECT@ECT, Walt Zimmerman/Houston/Eott@Eott, Steve
Williams/EOG/Enron@Enron, Bonnie White/Corp/Enron@Enron, Robert
Vote/Corp/Enron@Enron
cc: Michael Moran/ET&S/Enron@Enron, Brenda McAfee/Corp/Enron@Enron, Shirley
Davey/Corp/Enron@Enron

Subject: DOJ Royalty Inquiry

I have received a copy of a V&E invoice regarding the above-referenced case
in the total amount of $5,003.17, which is split equally among Enron Corp.,
EOG, ECT, and EOTT, pursuant to the agreement of those parties. Let me know
which of you need a copy of that invoice. Many thanks.

B.K.D.