Re: Dispute Resolution in Colombia Trading Contracts

I am fine with the Chamber of Commerce arbitration, especially in light of
the small amount of potential exposure. Could you send me a copy of the
opinion from our local counsel.

Robert C Williams@ENRON_DEVELOPMENT
07/18/2000 04:30 PM

To: Stephanie Harris@ENRON_DEVELOPMENT, Rob Walls
cc: Mark Taylor@ECT, Jeffrey T Hodge@ENRON_DEVELOPMENT, Richard Sanders,
Francisco Pinto Leite/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Frank
Sayre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Dispute Resolution in Colombia Trading Contracts

Jim,

As you know, Jeff Skilling has approved opening a trading operation in
Columbia. The company's open position at any one time will be no more than
$500,000. Jeff Hodge and Francisco Pinto-Leite have been working on the
trading contracts. Our businesspeople inform us that they will not be able
to obtain counterparties' agreement to international arbitration. We, for
our part, are unwilling to agree to refer all disputes to the Colombia
courts. The best option appears to be arbitration conducted under the
auspices of the Bogota Chamber of Commerce. We have obtained a written
opinion from local counsel, Figueroa Sierra & Asociados, opining that this
body has a proven record of conducting arbitrations fairly, without bias, and
free from corruption. In particular, foreign parties have been treated
without discrimination, winning their fair share of awards. We are
requesting that we be permitted to accept the Bogota Chamber of Commerce as
the exclusive forum for resolving any disputes that might arise under our
trading contracts. I am aware that we have accepted local arbitration for
trading disputes in Buenos Aries; I am not sure whether we have done so in
Europe.

Please let me know if this is acceptable to you, or if would like additional
information.

Thank you.