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Enron Mail |
I would be happy to take this over. I am out of town today and Monday. Lets
set up a conference call on Tues. Twanda will call you to set it up. Kenton Erwin@ENRON COMMUNICATIONS 05/16/2000 07:26 PM To: Richard B Sanders/HOU/ECT@ECT cc: Subject: Citgo pipeline claim Richard, my larger projects are peaking right now, and Kristina suggested that I ask you whether you would like to manage this matter. A Citgo gasoline pipeline was ruptured by our subcontractor (Wilde Construction) last May, near Luling TX. Citgo has incurred aprox. $700k of cleanup costs. We believe the costs should be shared by Citgo (for failing to correctly mark the line), Wilde (for negligently striking the line), and Bechtel ( for not being present as our construction manager, knowing that Wilde was working near the gasoline line). The new complication: The spill may prevent the proposed buyer from purchasing the 1000-odd acres parcel affected by the spill. If that purchase doesn't go through, the attorney for the Mexican national landowner told me that the mortgage on the land would be foreclosed, and the landowner would bring an action for the lost purchase price ($1.3MM) (which I doubt he could fully recover, since he could sell the property for some lesser amount). I am setting up a mediation (of Citgo, Bechtel, and Wilde), where John Odam (our atty, with Mangham Hardy) would act as mediator. The new info about the land claim may change that strategy. Would you like to manage this, or be somewhat involved, or not involved? Thanks, Kenton
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