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Enron Mail |
Wade Price should be able help you out on item #1.
I never was really assigned to "audit" the Appalachian suppliers. I was mi= dway through another Appalachian project , when I realized that there were = several transport and purchase related issues. So, I began compiling a Sup= plier Reference Book to get a better picture of supplier's activity. I use= d this book to verify price change request. I also used it to identify sev= eral incorrect requests for pricing adjustments and errors in Settlements' = calc-sheets. My concern for additional purchase errors led me to the revie= w most of the Appalachian purchase deals. It was during one of these activ= ities that I identified the Adkin's payment errors. I'm sorry, but I don't= have any documented "audit" findings. Any correspondence I did have was l= ost in the conversion to Outlook. I do still maintain my Supplier Referenc= e Book, but I don't think it would be much help. However, I did review the= CGAS IF pricing the for the year prior to the deal. Only one month during= that time was the index price higher than the contracted $3.075. In fact = they were considerably lower. Also, I've reviewed the settlement statement= s, it appears we paid Mr. Adkins for three months before the error was caug= ht. The first month was paid at index (index was $0.06 lower than the cont= ract price), the next month was paid at index ( index was $0.22 higher than= contract price) and the third month was corrected to the $3.075 ( index wa= s $4.53). I think this correction made in Oct-00, is when he first realiz= ed there was an issue. I hope this helps you, Terry 3-7675. -----Original Message----- From: =09Davis, Britt =20 Sent:=09Tuesday, October 16, 2001 10:29 AM To:=09Dickson, Stacy E. Cc:=09Sanders, Richard B.; Singer, John; Price, Wade R.; Nolte, Ron; Wallum= rod, Ellen; Franklin, Mary Theresa; Sever, Stephanie Subject:=09ENA v. Adkins =09Stacy, =09This will confirm our telephone conference with Mike Farrell, Franklin A= dkins' attorney, today. Based on my recommendation, you and I followed up = with him today to see if Adkins still wanted to pursue his claim, despite o= ur response to him. =09Farrell told us that although his client had not yet received his writte= n legal analysis, Adkins does not want to drop the claim. Farrell told you= and me that he thought the "mere sending of your confirm" did not overweig= h the months that ENA paid Adkins under the index price, which established = in Farrell's view a course of dealing between the parties that made the ind= ex price the correct price. During this short telephone conference, Farrel= l never said whether his client had received the confirmation. Of course, = our position is that whether Adkins' telefax machine printed out the confir= mation is irrelevant; we have the evidence necessary to show that we sent i= t. =09Farrell told us that he expected to send us a response next week, contin= uing his demand for arbitration. He did not say whether there would be any= settlement offer in the letter. I will advise you as soon as I receive Fa= rrell's letter. =09I would be very pleased to arbitrate this for you as your trial counsel.= I believe that Farrell is correct in stating that there are sufficient fa= cts to create a course of performance issue, on which arbitrators could rul= e in favor of Adkins. However, I believe that we have a persuasive argumen= t that ENA paid the incorrect price only as a result of a clerical error. = In order to support this argument, we also need to develop the following:= =20 =091. Did Franklin Adkins do or not do anything as the result of receipt o= f payment of the index price for a period of time that disadvantaged him? = The timing of when Adkins first realized he was being paid the index price= may be critical. I need to speak to the right person about how we would h= ave made payment and what business documents were sent to Adkins after the = confirm was telefaxed, and get copies of all those documents. Could someon= e tell me who that would be? =20 =092. Did ENA correct the price before or after the spot market price rose= above the contract price? (You had kindly agreed to do the homework on thi= s). Also, I need Mary to advise me when she was instructed to perform the = internal audit, why and by whom, and get copies from her of all her file ma= terial on that audit. =09I greatly appreciate your and everyone else's help. If anyone has any t= houghts on other homework we could or need to be doing, please let me know.= If anyone knows of someone else who needs to be in the loop on this, plea= se let me know. =09I will continue to keep you advised. =09Britt =09 =09
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