Re: questions on COU

---------------------- Forwarded by Todd Peterson/ENRON_DEVELOPMENT on
03/06/2001 01:54 PM ---------------------------

Todd Peterson
12/13/2000 01:25 PM
To: "Jane Michalek" <jmichalek@cabotlng.com< @ ENRON
cc:

Subject: Re: questions on COU

Jane

I have a few answers for you.

1- The Puerto Rico Ports Authority has jurisdiction and designates a 'Port
Captain' for the harbors of Guayanilla, Tallaboa and Ponce. I am not sure of
the full extent of the Authority's functions and /or regulatory authority ( I
am trying to find out ) but you should be able to get this information
through your local agent.

2- Although it appears that Attachment A has not previously been prepared, it
was intended to be a verbatim listing of those marine transportation-related
requirements that were set forth among the 47 listed items in the Appendix
(Titled 'Environmental Conditions and Mitigating Measures') to the FERC's
Order of May 15, 1996, granting EcoElectrica authorization under Section 3 of
the Natural Gas Act. Among those which would be included are items #23 and
#24 relating to the sea turtles and manatees. I will try and get this for you.

3- While there is no reference to an 'Emergency Response Plan' in the COU,
Eco does have one (Spill Prevention Control and Countermeasure Plan - SPCC)
that was prepared under 40 CFR Ch. 1 (7-1-99 Edition) and submitted to the
U.S. Environmental Protection Agency. This would be consistent with section
7.1

4- The insurance requirements in Sec. 2(b) (viii) of the Sales Contract are
general in nature. The insurance requirements in the COU, a multiple party
agreement, contemplated by, but beyond the scope of the Sales Contract,
supplements the Sales Contract provisions and apply to the liability limits
set forth in COU clause 10.

5- With regard to your comments about clauses 11 and 12 you have a point. We
will try and work on a modification in order to reduce your concerns.

I hope this helps. Please let me know if you have any questions.

BR/TP

"Jane Michalek" <jmichalek@cabotlng.com< on 12/11/2000 06:43:11 AM
To: Todd.Peterson@enron.com
cc:

Subject: questions on COU

Todd - I have some questions on the COU.

Is there a relevant "Port Authority" at the EcoElectrica terminal? If not,
why is this contained in the document?
In Section 2.1, is there an Attachment "A"?
Do the LNG Interests have an Emergency Response Plan? Does this Plan have
references to actions required in 7.1?
Do the insurance requirements of the "vessel interests" duplicate or
override
what is required of Cabot LNG in Section 6.2 of the sales contract? Should
the LNG interests provide same insurance documentation?
Ditto Section 12

These are my simple questions not intended to begin a negotiation. I am only
trying to gather all information. Please call me for other comments.

Jane