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Enron Mail |
Cc: katrin.haux@enron.com, mariella.mahan@enron.com, john.ambler@enron.com,
david.shields@enron.com, eggie.pichardo@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable Bcc: katrin.haux@enron.com, mariella.mahan@enron.com, john.ambler@enron.com, david.shields@enron.com, eggie.pichardo@enron.com X-From: Otto Gonzalez X-To: Michelle Blaine X-cc: Katrin Haux, Mariella Mahan, John Ambler, David Shields, Eggie Pichardo, Richard B Sanders@ECT X-bcc: X-Folder: \Richard_Sanders_Oct2001\Notes Folders\International X-Origin: Sanders-R X-FileName: rsanders.nsf Letter is fine with me. Thanks, Otto Michelle Blaine 01/16/2001 01:00 PM To: Otto Gonzalez/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Katrin Haux/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mariella=20 Mahan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John=20 Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David=20 Shields/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Eggie=20 Pichardo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Richard B Sanders@ECT=20 Subject: RE: Smith Enron Cogeneration Plant - shareholder complaint/Attorne= y=20 Client Privilege =20 I have confirmed that Mr. Badger and his wife are both named plaintiffs in= =20 the Costambar litigation against SECLP. Because they are involved in pendi= ng=20 litigation against us, we really cannot give them anything but a "non-answe= r"=20 answer attached. If there are no objections I'll send this to Mr. Badger.= =20 thanks!=20 Michelle=20 Otto Gonzalez 01/11/2001 09:01 AM To: Katrin Haux/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Mariella Mahan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John=20 Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David=20 Shields/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Michelle=20 Blaine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Eggie=20 Pichardo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT=20 Subject: RE: Smith Enron Cogeneration Plant - shareholder complaint =20 Katrin, This is indeed a sensitive matter and must be treated accordingly. I do=20 strongly suggest that before anything you talk to Michelle Blaine of our=20 litigation team who is very up to date on the class action cases the=20 Costamabar comunity has against SECLP. There are many half truths and many= =20 lies involved. The plant team has for long been aware of the responsability= =20 and are very diligent and careful to comply with the environmental standard= s=20 applicable.=20 One problem here is that across the bay from where we are, there are two=20 other power plants (one of them which I managed) and also produce "noise" a= nd=20 air emissions, one within applicable World Bank standards but no the other,= =20 which belongs to a third group. The prevailing winds bring the emissions fr= om=20 those plants directly to our plant and the Costambar community. Our air=20 emissions (within WB standards - monitored during the year) mostly go down= =20 wind southeast away from Costambar. So there are many variables involved. We must be careful with the shareholder letter since it is very likely the= =20 person may be part of the class action and is fishing for something. But=20 Michelle can advice you appropriately. If you need any further data from th= e=20 plant after talking to Michelle please let me know. Many thanks, Otto =20 =09 =09 =09From: Katrin Haux 01/10/2001 07:41 PM =09 To: Otto Gonzalez/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Mariella Mahan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John=20 Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT=20 Subject: RE: Smith Enron Cogeneration Plant - shareholder complaint Otto, The following shareholder complaint about Smith Enron's plant in Puerto Pla= ta=20 was sent to Investor Relations and today forwarded to our attention,=20 requesting assistance with this matter. The gentlemen sending the complain= t=20 owns a home in Costambar, a residential community, which, according to his= =20 e-mail, has been negatively affected by our plant. He mentions a disturbi= ng=20 noise level, decreased air quality, dwindling property value and power=20 outages worse than prior to the plant going online. The fact that we take= =20 any shareholder complaint very serious, I am preparing a response to this= =20 letter and I am asking for your help. Could you provide me with any=20 background information on the alleged complaints and confirm or deny the=20 issues at matter? Are there any plans on the way to address any possible= =20 issues? It had been my impression that the Smith Enron plant not only had = no=20 negative effects on the environment but that great efforts were made to=20 improve the local community through community relations programs like the= =20 public park adoption, supply of school materials, shipment of medical=20 supplies and the municipal nursery support. Can you expand on this? =20 I realize that this matter has to be managed with extreme caution. I clear= ly=20 will coordinate my reply with you and seek additional approval from legal= =20 prior to responding to the gentlemen. Thank you in advance for your support and cooperation. Best regards. --= =20 Katrin -----Original Message----- From: Gordon Badger [mailto:badger@estation.com] Sent: Friday, December 15, 2000 10:08 AM To: investor-relations@enron.com Cc: public-relations@enron.com Subject: Smith Enron Cogeneration Plant - Puerto Plata, Dominican Republic ? Iam an Enron shareholder through my holding company First Foundation=20 Financial Services Inc. Five or six years ago Smith Enron floated in and installed a power generati= on=20 plant at Puerto Plata in the Dominican Republic generating power to sell to= =20 the Dominican power agency. Presentations were made at the time to the loca= l=20 (mostly American and Canadian) residents in the community of Costambar, whe= re=20 the plant was to be (and was) built, that: ???????? The noise would not exceed =01&the sound of the ocean=018, ???????? That there would be no air quality damage, and=20 ???????? That the power outs in Costambar would cease. I have a home in Costambar about a half mile away and over a large hill fro= m=20 the plant.=20 ???????? The sound is audible in the entire neighborhood;=20 ???????? When they clear the boilers it is oppressive/ear shattering for th= e=20 entire community of 800 homes =01) in spite of the retrofit silencers;=20 ???????? There is often molecular ash falling and on occasion =01) well=20 documented with pictures =01) total black soot coverage down wind for a qua= rter=20 mile or more; ???????? Costambar is on the country=01,s grid and has power outs for an av= erage=20 of two or more hours per day =01) worse than before.=20 In other words, all of the well-documented and witnessed undertakings have= =20 been proven false. I was proud of Enron at the beginning because there seemed to be a legitima= te=20 attempt to do the right thing. As time has progressed, however, it has beco= me=20 clear that there is no solution to the continuing problems. It is also=20 obvious that the ONLY right thing is to pull up stakes and float the plant = to=20 the original alternate location down the coast =01) or to another country.= =20 The problems are insoluble. You simply can=01,t plop a large energy burning= =20 facility beside an upscale community without event. For a company as=20 knowledgeable as Enron should be concerning the effects to nearby residents= ,=20 it borders on inexcusable that the plant would have been built where it is = in=20 the first place. Having attempted any number of solutions and now recognizi= ng=20 the absence of solution, the continuing inexcusable action is to =01&carry = on=20 regardless=018 as ahs been the case for the past two or more years. Enron has been sued by the adjacent (large) hotel which, although only two = or=20 three years old when the plant was built, had to shut down because of=20 unending guest complaints and refund demands. It now sits as a rotting=20 monument to the problems. Unfortunately for Enron, the owners are a promine= nt=20 Dominican family. I am told they already have a large judgement - but are= =20 going for more. If they haven=01,t already they surely will =01) and they s= urely=20 should. What was once an attractive and productive facility is useless and= =20 will remain fallow as long as the plant is there. Soon it will fall totally= =20 beyond repair and there will be no alternative but to raze it. Houses in the immediate area =01) say ? mile/100 homes =01) have fallen 50%= to 75%=20 in value, and houses in the community at large have fallen 10% to 50% in=20 value dependent upon their proximity to the plant. Whereas the hotel value = is=20 in the low millions and the ultimate award will likely be commensurate, the= =20 loss in value to the homes is in the tens of millions. Beyond these financi= al=20 events, some of the people in the community are beginning to complain about= =20 new respiratory and other pollution related ailments. The rough estimate of= =20 damages ranges between US$100 million and $150 million without considering= =20 the health issues. The community has sensible and responsible leadership and has responded in = a=20 sensible and responsible way.? Dissatisfied with the failure to solve the= =20 problem in any approaching a timely fashion, the homeowners have recently= =20 retained competent counsel. Nearly 400 homeowners have joined the class=20 action to recover their lost property value. The issue of determining lost= =20 value is about to formally begin and the total loss calculated. Soon there= =20 will be no turning back because of the homeowners=01, investment in the act= ion. If there were an announcement that the plant is to be moved the claim from= =20 the community would almost certainly go away with the possible exception of= =20 damages for? the few homes that have changed hands during the plant=01,s li= fe=20 here. If the plant remains, the action will proceed =01) and all things bei= ng=20 equitable, which they ultimately become in the Dominican court system, ther= e=20 will be large claims awarded. I imagine they will massively overshadow the= =20 few million dollars to move or dismantle the plant. ? ? I now take off my homeowner=01,s hat and return to my position as sharehold= er.=20 The following (italicized) statements form part of the Enron Mission=20 Statement. As noted above the company has so far failed to implement these= =20 visions as noted. ? environment=20 In everything we do, we operate safely and with concern for the environment= .=20 The way we do a job will affect how our children and our neighbors' childre= n=20 will live in the future. This is a responsibility we take seriously in all= =20 the different places around the world where we do business. The Costambar environment has been seriously effected from a noise and air= =20 pollution point of view. ? integrity=20 We work with customers and prospects openly, honestly, and sincerely. When = we=20 say we will do something, we will do it; when we say we cannot or will not = do=20 something, then we won't do it. The community was seriously misled and Enron has been unable to develop=20 solutions to restore or correct their documented assertions. ? creativity We think the entrepreneurial approach stimulates creativity. It calls for n= ew=20 insights, new ways of looking at problems and opportunities, and a strong= =20 sense of urgency. The problems have persisted for several years with no recent new initiative= s=20 directed at solving them. ? respect=20 We treat others as we would like to be treated ourselves. We do not tolerat= e=20 abusive or disrespectful treatment. Ruthlessness, callousness, and arroganc= e=20 don't belong here.=20 The Golden Rule has long since gone wanting in this situation. ? It is simply not responsible for Enron to continue with a facility that has= =20 and continues to damage a community, financially and from a health point of= =20 view. And it is not financially responsible of Enron management to risk the= =20 payment of tens of millions in claims arising from damages that can otherwi= se=20 be avoided at quantifiable and much lower cost.=20 I=01,m sure the company has a thick file on this issue already. I=01,m equa= lly=20 sure, however, that the measure of damages is reaching a new phase and is= =20 approaching the point where there will be no will by the litigants to turn= =20 back. The plant was constructed during the waning days of the environmental= ly=20 insensitive Beleaguer government. The country has undergone substantial=20 changes since then including changes in The Rule of Law and the judiciary.= =20 There is now a new liberal government that is likely to be very generous wi= th=20 one of its previously model communities if the matter reaches the courts. The loss to the shareholders of Enron from inactivity of management is like= ly=20 to be immense =01) and is avoidable. I would appreciate a comment on management=01,s views as quickly as possibl= e. ? ? Sincerely, D. Gordon Badger ? ? badger@estation.com Puerto Plata tel - 809 970 7184; fax - 970 7134 ? ? ? ?
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