Message-ID: <31320616.1075856360157.JavaMail.evans@thyme>
Date: Wed, 18 Oct 2000 08:20:00 -0700 (PDT)
From: v.weldon@enron.com
To: milind.pasad@enron.com, claudio.ribeiro@enron.com
Subject: 
Cc: mike.roberts@enron.com, mark.tawney@enron.com, george.carrick@enron.com, 
	joseph.hrgovcic@enron.com, vince.kaminski@enron.com
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Folks,

Attached is a conservative (and fairly rough) estimate of the size of the 
petrochemicals and refining market that is potentially exposed to prolonged 
drought in southern Texas which could result in extremely low riverflows and 
possible curtailed production.   The total annual revenue generated by these 
assets is no less than $20B and could be substantially higher as the 
estimated capacity on some of these facilties is likely understated and other 
facilties not yet identified are likely to be vulnerable.

Note that this data does not include any facilities in the industrial 
complexes from Houston northward and eastward as they are much less likely to 
experience such a drought-induced interruption.  The only facilties 
identified thus far lie on or near the following rivers: Brazos, Colorado, 
Navidad, Guadalupe, and Nueces.

Please let me know if you have any questions/comments as we work to determine 
whether or not a low riverflow insurance product is viable.


Thanks,

Charlie

