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Enron Mail |
Cc: david.forster@enron.com, brent.hendry@enron.com, andrea.calo@enron.com,
patrick.hansen@enron.com, julian.poole@enron.com, carlos.alatorre@enron.com, alberto.carreno@enron.com, cristian.folgar@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: david.forster@enron.com, brent.hendry@enron.com, andrea.calo@enron.com, patrick.hansen@enron.com, julian.poole@enron.com, carlos.alatorre@enron.com, alberto.carreno@enron.com, cristian.folgar@enron.com X-From: Lynn Aven X-To: Michael Guerriero X-cc: David Forster, Brent Hendry, Scott Mills@ECT, Mark Taylor@ECT, Andrea Calo, Patrick Hansen, Julian Poole, Carlos Alatorre, Alberto J Carreno, Cristian Folgar X-bcc: X-Folder: \Mark_Taylor _Dec_2000\Notes Folders\Notes inbox X-Origin: Taylor-M X-FileName: mtaylor.nsf After talking to Mike, I wanted to clarify one point. Apparently ESA currently has an employee available to manage the Stack Manager out of Houston. From a tax perspective that employee can manage the Stack Manager out of Houston for the short duration in which ENA is trying to see if this is a viable product.. If that is the route that is chosen, it will be necessary for ESA and ENA to enter into an agreement whereby the ESA employee is seconded to ENA for purposes of providin these services. Lynn Lynn Aven 12/01/2000 02:33 PM To: Michael Guerriero/SA/Enron@Enron cc: David Forster/Corp/Enron@Enron, Brent Hendry/NA/Enron@Enron, Scott Mills/HOU/ECT@ECT, Mark Taylor@ECT, Andrea Calo/SA/Enron@Enron, Patrick Hansen/SA/Enron@Enron, Julian Poole/SA/Enron@Enron, Cristian Folgar/SA/Enron@Enron, Carlos Alatorre/NA/Enron@Enron, Alberto Carreno/NA/Enron@Enron Subject: Re: Mike: My comments in RED below address the Tax Issues you have raised. You will note that I have commented on several items you list under Legal Issues as well since these concepts have a tax impact. Regards Lynn To: David Forster/Corp/Enron@Enron, Lynn Aven/NA/Enron@Enron, Brent Hendry/NA/Enron@Enron, Scott Mills/HOU/ECT@ECT cc: Mark Taylor@ECT, Andrea Calo/SA/Enron@Enron, Patrick Hansen/SA/Enron@Enron, Julian Poole/SA/Enron@Enron, Cristian Folgar/SA/Enron@Enron, Carlos Alatorre/NA/Enron@Enron, Alberto Carreno/NA/Enron@Enron Subject: To expedite communication and secure all functional sign off on the Argentine offshore power product I am circulating this overview of the product and its structure and remaining issues that still need to be addressed. Please submit comments as soon as possible so that we can secure the necessary approvals to load and launch this product. Product Description Product Argentine Power Financial Swap Obligation Firm Transaction Location Offshore Enron Offshore & Onshore Argentina Counterparty Internal Counterparty Enron North America External Counterparties Generators, LDCs, Largest Industrials, Term 1 Year and less Intra month, Monthly, Seasonal Volume 1MW and more Index Ezeiza Currency $US Dollars/MWh Stack Manager Alberto Carreno (ESA Houston) Legal Issues We need to secure the following: Can an ESA employee execute the transaction on behalf of ENA? NO, THIS WOULD CREATE PROBLEMS ADDRESSED IN THE THIRD QUESTION IN THE TAX SECTION BELOW. Sign off on Product Description I DON'T SEE A TAX PROBLEM HERE IS THE ESA EMPLOYEES ARE PROVIDING SUPPORT TO ENA. AT SOME POINT IN TIME, WE WILL NEED TO PUT IN PLACE A SERVICE AGREEMENT BETWEEN EAS AND ENE WHEREBY EAS CHARGES ENA FOR THE SERVICES IT PROVIDES ENA IN SUPPORTING ARGENTINE PRODUCTS TRADED BY ENA. THIS WILL ADD A LEVEL OF COMFORT IN MAINTAINING THAT ENA IN FACT IS NOT TRANSACTING BUSINESS IN ARGENTINA. Finalize GTC SAME COMMENT AS ABOVE Confirmation Template ENA agreement to host product Tax Issues In relationship with US taxation risk we need tax to clarify the treatment on the following: Whoever will run the Stack Manager for this product has to be physically located in the US? THE PERSON WHO RUNS THE STACK MANAGER MUST BE LOCATED IN HOUSTON. IT WILL BE PERMISSIBLE FOR THAT PERSON TO RECEIVE INPUT FROM ENRON AMERICA DE SUR EMPLOYEES IN BUENOS AIRES BUT THE STACK MANAGER MUST BE RUN OUT OF HOUSTON. Does that person who runs the Stack Manager need to be an ENA employee or can he be an ESA employee? THE PERSON WHO RUNS THE STACK MANAGER NEEDS TO BE AN EMPLOYEE OF ENA. Can an ESA employee execute the transaction on behalf of ENA? NO. IF AN ESA EMPLOYEE EXECUTES THE TRANSACTION, THE ARGENTINE TAX AUTHORITIES COULD SUCCESSFULLY ARGUE THAT ESA IS IN REALITY THE PARTY TO THE TRANSACTION AND SUBJECT SUCH TRANSACTION TO ARGENTINE INCOME TAX AS WELL AS THE INGRESSOS BRUTOS AND OTHER TRANSACTIONAL TAXES. Can Julian sitting in Buenos Aires have read only access to that product on the Stack Manager?. THIS SOUNDS OK TO ME. I ASSUME HE IS JUST MONITORING THE TRADING ACTIVITY AND WILL ADVISE ENA IF HE SEES ANY POTENTIAL PROBLEMS. EOL Team EOL to migrate contents and product to production Trading Accounting ENA - Back-Office setup mapping Once these issues are cleared by Legal,Tax and Trading Accounting we need to communicate all this to Dave Forster in order to get the Enrononline group finalizing implementing the product. Please give me your comments as soon as possible. MFG
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