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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.
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