Re: In re M/V PACIFIC VIRGO

Dear all,

Please find herewith a recap of my observations relating to Mitsubishi's
demurrage claim, which does not take the outcome of the liability question
i.c.w. the rejection of the cargo by receivers at Batangas into account:

1. Claim is time barred (ECTS clause 43)
Owners/owners' brokers did not return signed original of charterparty within
90 days from completion of discharge ("cod"), notwithstanding that the
original and duplicate were sent to them on 16.08.00, which is 21 days after
cod (case law: Commercial Court 1999 - "Obo Venture").

2. Start laytime at Elang (ECTS clauses 1(e) and 10)
Notice of Readiness ("NOR") shall not be tendered before 06h00 on first day
of laydays. In addition, Enron is entitled to a complete 6 hours notice
time, as the notice-time entitlement is unqualified (contrary to clause 6 of
the Asbatankvoy C/P). Deduction: 5h 59m.

3. Slow loading Elang (ECTS clause 11(b))
Shore lodged Letter of Protest stating that Terminal loading rate is
4200m3/hr and vessel was unable to load at a rate greater than 3600m3/hr.
However, we do not know what the max. receiving rate of the vessel is.
Moreover, vessel has 3 manifolds and shore only connected 1x 16" arm.

4. Start laytime at Koh Sichang (ECTS clauses 1(e) and 10)
As per point 2 above. Deduction: 3h 39m.

5. Excess pumping time at Koh Sichang (ECTS clause 16)
Vessel neither discharged this part cargo in 15h 58m (based on 24 hours for
entire cargo as warranted) nor did she maintain a pressure of 100psi at
manifold. The vessel discharged this part of cargo in 36h 5m. However,
shore had imposed pressure and rate restrictions on vessel. Taking these
restrictions into consideration, the vessel in breach of owners' pumping
warranty used 8h 32m in excess of what she should have used. Deduction: 8h
32m.

6. Bad weather related port closure at Batangas (ECTS clause 10(h) and 10(f))
Agents reported that all terminals in Batangas were closed for berthing due
high winds during the first 112.5h (from arrival on 04.07.00 to 08.07.00).
According to clause 10(h), the delay in berthing resulting from weather
conditions counts at one-half of such time. Deduction: 53h 15m (=(112.5h -
6h)/2). In the alternative, we may be able to fully deduct the 112.5h delay
pursuant to clause 10(f), if there is a local law or regulation we can rely
on to except this delay (Eric Tan has requested a copy of the port
regulations).

7. Start laytime at Yosu (clause 6 of Asbatankvoy C/P)
a) NOR was allegedly tendered on 23.07.00 at 19h00. However, NOR attached to
claim shows that it was received on 25.07.00 at 12h45 (when vessel all fast
in berth). Moreover, the NOR is dated 25.07.00. As per clause 6 laytime
shall only start 6 hours after receipt of notice by charterers/their agents.
I do not believe that Enron Spore received an NOR by telex. They only
received a telex from their nominated agents (Samsun) on 24.07.00 at 08h40
with the vessel's arrival times including the EOSP and NOR tendered time
(23.07.00 at 18h42).
b) Alternatively, vessel anchored at waiting place on 23.07.00 at 20h15, but
tendered NOR at EOSP (18h42) or on arrival pilot station (19h00). As per
clause 6 the NOR has to be tendered on arrival at customary anchorage. As a
result, the NOR tendered by master was given prematurely and at the wrong
place. This renders the NOR invalid. As the master did not retender a fresh
NOR when the vessel arrived at customary anchorage, laytime shall not
commence, if at all, until the commencement of discharge (case law: High
Court 1997 - "Agamemnon").

8. Excess pumping time at Yosu (ECTS clause 16)
Vessel neither discharged this part cargo in 9h 2m (based on 24 hours for
entire cargo) nor did she maintain the max. allowable shore pressure of
4.9kg/cm2 (= less than 100psi) at manifold. The vessel discharged this part
of cargo in 11h 15m. Deduction: 2h 13m.

Please let me know, if you have any questions.

B regards,
Wietze.

Enron Capital & Trade Resources Corp.

From: Paul Henking 01/12/2000 03:09

To: Wietze Dingeldein/LON/ECT@ECT
cc: Richard B Sanders/HOU/ECT@ECT, Alan Aronowitz/HOU/ECT@ECT, Harry M
Collins/HOU/ECT@ECT, Michael A Robison/HOU/ECT@ECT, Matthias Lee/SIN/ECT@ECT,
Eric Tan/SIN/ECT@ECT, david.best@clyde.co.uk@ENRON, ngregson@wfw.com@ENRON,
Becky Zikes/Corp/Enron@ENRON, Britt Davis/Corp/Enron@ENRON

Subject: Re: In re M/V PACIFIC VIRGO

wietze,

sorry to come back to you on this matter but appreciate your input once again.

from your msg of 17 nov, seems worse case is we owe about $222,652.78 but
could be better. would appreciate if you could put together a "recap" of the
various positions for britt/david, including possibiliy of the time bar
whereby it could be zero, so they can determine best position.

if, as you say, we may have a strong arguement at the time bar, my suggestion
would be that david discuss this possibility with mitsubishi's lawyers to try
to determine a reaction, if possible, to that position. we can always agree
to pay a lower amount later.

as usual, thanks to copy us on whatever is sent so we have a copy for the
files. also, thanks again for your help.

best regards

From: Britt Davis@ENRON on 11/30/2000 04:46 PM CST
To: Richard B Sanders/HOU/ECT@ECT, Alan Aronowitz/HOU/ECT@ECT, Harry M
Collins/HOU/ECT@ECT, Michael A Robison/HOU/ECT@ECT, Matthias Lee/SIN/ECT@ECT,
Paul Henking/SIN/ECT@ECT, Eric Tan/SIN/ECT@ECT, david.best@clyde.co.uk,
ngregson@wfw.com
cc: Becky Zikes/Corp/Enron@ENRON
Subject: In re M/V PACIFIC VIRGO

Mitsubishi has just agreed to have Mr. Hamblen, one of the arbitrators that
we proposed, appointed in this matter. David Best will follow up with Mr.
Hamblen with this.

David will also go forward with negotiating the without-prejudice payment of
Mitsubishi's freight and demurrage claim (the latter payment being based on
what our demurrage department thinks it is really worth--Paul, I need to get
with you on this), as I had previously authorized him to do.

Mitsubishi has been advised of the shelf-life issue and is being pressed by
its solicitors for a reply to our suggestion that the joint survey take place
in the U.K. Mitsubishi advises their solicitors that they will revert as
soon as possible regarding this.

I will continue to keep you advised.

Britt