Karl Kendall 11 18 2002 08 36 AM To Ralph Braccio@erm com cc Subject Re NEWS ITEM Thanks Ralph I saw it in the trade press somewhere Oil Gas Journal last week Of course one's reaction may be justifiably ambivalence kudos for Osinerg I think or cynically is it my place to question motives but naturally it does question the when and where of the incident itself and why our happy sponsors weren't looking after their own contractors not to over dramatize with hyperbole but relying of the Peruvian inspectors to clean up the project's act is a parallel to relying on UN inspectors to assure weapons compliance of you know where lt'd be interesting to know if and when the $944 000 gets paid and ultimately what the sponsors are doing to rectify the identified problem Cynically again though an operating and not construction issue I remember in the old Soviet Union how pollution fines simply became a form of taxation overhead paid annually to maintain pollution so a fine unto itself even if paid may not be that impressive Ralph Braccio@erm com Ralph Braccio@erm co m 11 15 2002 05 45 PM Popi 1 To popi artavanis@exim gov karl kendall@exim gov cc Subject NEWS ITEM Karl Welcome back 2 I saw this news tidbit and thought you should know about it if you haven't already heard --Ralph I Osinerg fines Camisea pipeline constructor for environmental damage By an OGJ correspondent LIMA Nov 5 -- Osinerg the supervisory organization for Peru's energy industry fined Transportadora de Gas del Peru TGP 3 4 million soles equivalent to $944 000 for environmental violations during construction of natural gas pipelines for the Camisea project The regulatory agency claims TGP failed to comply with all of its commitments under an environmental impact study for that project That includes excessive deforestation along the pipeline right of way causing landslides and endang ering the watershed with the risk of erosion regulators said Osinerg will reduce the fine by 25% if TGP foregoes its right of appeal and pays within 15 days TGP also must repair the damage it caused I