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Records motherload: EOTT dig southwest of Hobbs yields 190 sacks of documents (former Enron company)
Hobbs News-Sun ^ | May 24, 2003 | Richard Trout

Posted on 05/24/2003 12:23:12 PM PDT by CedarDave

Records Motherload: EOTT dig southwest of of Hobbs yields 190 sacks of documents

RICHARD TROUT

NEWS-SUN

While energy companies have come across an unexpected find in the oilfields from time to time, no one could dreamed of the scope of the untold treasure as the last of 190 moldy burlap sacks containing hundreds of thousands of documents was removed late Friday afternoon from the huge cache secretly buried southwest of Hobbs.

After digging for nearly 30 straight hours, about 20 contract workers and an excavator operator recovered the last of what had first been rumored to be only 40-50 boxes of documents from the bottom of a 45-foot hole, 2-1/2 miles south of the Linam Gas Plant.

Just before 5 p.m. Friday, the last few records had been fished out of the nearly 2-acre recovery site and placed in standard-size banker's boxes, which were then placed in a van and moved to a secure storage area in Hobbs. The decaying, dirt-encrusted documents had the sour stench of mold and mildew, caused by moisture contact and being stored for years underground.

The security guard noted she had still not become accustomed to the smell after being in the building for hours.

But most of the documents were in bad shape after the digging ended Friday. And state officials and EOTT employees, including at least one attorney, planned to pore over the material through the Memorial Day Weekend, preparing an inventory of just what survived.

And while there were no questions about the documents' aroma, there are still many questions about why they were buried in the first place. And unless the project manager of this document burial comes forward, it appears those questions won't be answered anytime soon.

But with the words Tex-New Mexico Pipeline Co. or Texaco printed on the top of almost every receipt, manual, letterhead and financial form in the boxes in the cluttered storage space, at least one thing was clear -- some people with one or both of these companies know why the burial took place.

Houston-based EOTT Energy L.L.C., a former Enron subsidiary, started the excavation on May 8. According to EOTT representatives, the recovery took place because the company does not have adequate information about the pipeline it bought from Tex-New Mexico Pipeline in addition to other Tex-New Mexico properties.

"We had a reliable witness who had seen the documents buried back when (the site) was owned by Tex-Mex," said EOTT spokesperson Gretchen Weis. "We're hoping to find environmental records that may have something to do with the pipeline."

Tex-New Mexico owned a pipeline near the Hobbs excavation site until 1999, when it sold the pipeline to EOTT. But the energy company's witness reportedly saw Tex-New Mexico workers bury the documents around about two years ago on the site before EOTT purchased the pipeline.

"We need those documents by law," Weis said Friday afternoon at the excavation.

Because EOTT did not notify the State Land Office that it would be digging on the remediation site, on May 14 it received a cease-and-desist order from the land office.

Both the State Land Office and the state Oil Conservation Division said EOTT had been negligent in not notifying them of the massive project, which involved seven heavy construction vehicles and lighting for night work.

"Our main concern is the land out there," said Patrick Lyons, commissioner of Public Lands with the State Land Office, after leaving the excavation site and viewing the documents in Hobbs.

The State Land Office said it should have been notified before the 2-acre excavation started because it was because it was located on State Trust Land. The OCD said it should have been notified because the excavation had disturbed a 1995-2001 remediation project by EOTT and Texaco.

After getting hit with a fine and wrangling over the terms of a right-of-entry permit, EOTT finally resumed digging early Thursday afternoon and found the first bag of documents at 4:57 p.m.

Workers spent the next two hours stabilizing and smoothing the ground around the nearly 50-foot-deep pit, to allow workers on foot easier access to the site, before several returned with shovels to finish off the work by hand. But this proved to be a hard task and workers dug for hours before reaching the second bag of documents late Thursday night.

EOTT is currently involved in litigation with Tex-New Mexico Pipeline over a $7 million remediation project northeast of Midland, though Weis said the documents near Hobbs may have no relation to this lawsuit.

"We don't even know if they're related to litigation," Weis continued, "but it does look like we have documentation related to the operations of the pipeline."

Because the documents might relate to the lawsuit, Shell spokesman Tim O'Leary said he could not discuss the excavation or the litigation.

Landowners sued Texas-New Mexico and EOTT in March 2001 after discovering well water contamination in the early 1990s by a pipeline spill. The pipeline was owned at the time by Texas-New Mexico.

EOTT filed a counterclaim against Texas-New Mexico arguing it was not responsible at that time because it did not buy the pipeline until 1999. The counterclaim contends the sales agreement says Texas-New Mexico agreed to hold EOTT harmless for liability prior to March 1, 1999.

The counterclaim also states that when EOTT bought the pipeline, the company was supposed to get all environmental documents pertaining to the pipeline's operation and maintenance. And this is what reportedly prompted EOTT's recovery efforts after they eyewitness report.

EOTT is talking with a document restoration specialist regarding the best method of storing the records, Weis said. Based on his suggestions, they will probably use refrigerated trucks to transfer the material to a freezer. Freezing moisture-tainted documents prior to restoration is the best way to avoid further destroying them, Weis said, adding that she doesn't yet know where the documents will be restored.

As he surveyed a rows and rows of boxes waiting to be hefted into a van, Mike Kelly, in-house attorney for EOTT, had a similar assessment.

"There's virtually every type of document associated with the pipeline," Weis said. "These documents should have been returned to us when the (1999 pipeline) purchase closed."

On close inspection, some of these documents appeared relatively innocent -- receipts, run tickets, training manuals, a payroll time report and a benefit plan booklet. Others seemed to have some importance: an auditing report, a guide to "Operating the Pipe Line Pump Station," several manuals from a 1996 Texaco environmental remediation management workshop held in Galveston, Texas -- and a site plan of the Hobbs Texas-New Mexico Pipeline Co reclamation project.

Some of the material included dozens of computer floppy disks in wet pastic bags. One box contained an overlapping supply of red-and-white warning tape for Tex-New Mexico Pipeline.

Many of the documents had the Texaco moniker emblazoned beneath the dirt that covered nearly every piece recovered at the site, but most had clearly been the property of Tex-New Mexico Pipeline.

While EOTT was never really sure documents would be found, only a few days earlier EOTT attorney Daniel Dolan was fairly accurate about what types of documents might be uncovered.

"Those would be the operational documents," he said Monday. "Pipeline operations consist of three things -- construction documents, environmental documents and operational documents, as in how much you pump through it, what it's constructed of and that kind of stuff."

News-Sun writer R.P. Engle and the Associated Press contributed to this report.




TOPICS: Business/Economy; Crime/Corruption; Culture/Society; News/Current Events; US: New Mexico; US: Texas
KEYWORDS: enron; environment; eott; naturalgas; oil; pipelines; texaco
Previous thread here:

Files Found In Search For Secret Records- Mysterious Dig In The Desert Gets Results

1 posted on 05/24/2003 12:23:13 PM PDT by CedarDave
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To: CedarDave
Sounds like an Iraqi story, LOL
2 posted on 05/24/2003 12:27:33 PM PDT by Mister Baredog ((They wanted to kill 50,000 of us on 9/11, we will never forget!))
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To: chance33_98; JennysCool; Grampa Dave; Ernest_at_the_Beach; gcruse; razorback-bert; CommandoFrank; ..
New thread over here!!
3 posted on 05/24/2003 12:27:37 PM PDT by CedarDave (The number of Saddam (non)sightings is rapidly approaching those of Elvis!)
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To: CedarDave
I've been following this story in the local newspaper, and it's one of the weirdest things I've ever seen.
4 posted on 05/24/2003 12:27:53 PM PDT by Dog Gone
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To: Mister Baredog
The weather's the same: Hot, windy, sandy. LOL
5 posted on 05/24/2003 12:29:06 PM PDT by CedarDave (The number of Saddam (non)sightings is rapidly approaching those of Elvis!)
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To: CedarDave
Thanks!
6 posted on 05/24/2003 12:36:33 PM PDT by Ernest_at_the_Beach (Recall Gray Davis and then start on the other Democrats)
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To: CedarDave
EOG which is the sucessor to EOTT takes great pains to say that they are no longer affiliated with Enron. Every check they have sent me has cleared.

7 posted on 05/24/2003 12:37:00 PM PDT by Paleo Conservative
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To: CedarDave
I'm beginning to think that when they closed their office, they decided to use the dig as their own private landfill. Why hire someone (Waste Management) to take the stuff being thrown out 20+ miles to the county landfill at Eunice when you can have your own folks dump it in a big hole being filled in close to town. Now whether they should have discarded this material in the first place is something else again.
8 posted on 05/24/2003 12:37:16 PM PDT by CedarDave (The number of Saddam (non)sightings is rapidly approaching those of Elvis!)
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To: CedarDave
What a strange story. It most likely with come to a very boring, legalistic end, but to go to all that trouble...
9 posted on 05/24/2003 12:37:56 PM PDT by gcruse (Vice is nice, but virtue can hurt you. --Bill Bennett)
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To: CedarDave
Thanks for the ping and the info update! Just got home so will read over it in a few.
10 posted on 05/24/2003 12:41:20 PM PDT by chance33_98 (www.hannahmore.com -- Shepherd Of Salisbury Plain is online, more to come! (my website))
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To: gcruse
Did they find any gold or cash?
11 posted on 05/24/2003 8:20:13 PM PDT by battlegearboat (I want to be a millionaire!)
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To: battlegearboat
Nah. Just old scrolls.
12 posted on 05/24/2003 8:52:15 PM PDT by gcruse (Vice is nice, but virtue can hurt you. --Bill Bennett)
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To: CedarDave; Dog Gone
Started to drive down Maddox road today and have a look see, but a prosession of various LEO branded cars coming up the road changed my mind.

Texaco records might go back to the Pennzoil lawsuit.

13 posted on 05/25/2003 2:09:32 PM PDT by razorback-bert
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To: razorback-bert; Dog Gone
Wonder what they were up to. Could be they did some more digging this a.m. Area is still dry since we have had no rain, but that may change tonight.

Saw another long update article in Hobbs paper this morning which I was going to post. However, their website is down and I can't retrieve it, but will try later. Nothing on the ABQJournal site today.
14 posted on 05/25/2003 2:44:45 PM PDT by CedarDave (The number of Saddam (non)sightings is rapidly approaching those of Elvis!)
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To: razorback-bert; Dog Gone; Grampa Dave; Ernest_at_the_Beach
Just after I posted the above, the website came back up:

Hobbs News-Sun
Sunday, May 25, 2003

DOCUMENTS WAITING TO BE SORTED

MICHELLE A. FOX

EOTT employees moved desks, tables, chairs and computers into an office building commandeered for the daunting task of cataloging the thousands documents dug up last week from a closed remediation site southwest of Hobbs.

"We have been asked by the State Land (Office) to do a generalized review of what might be in each box," said Gretchen Weis, EOTT spokeswoman, on Saturday from the Hobbs office.

Meanwhile, EOTT is claiming the documents were buried in 190 burlap sacks in a 45-foot hole just weeks before it bought the pipeline assets and the remediation site from Texas-New Mexico Pipeline.

In addition to the office supplies, EOTT also has to bring in a document restorer to help decipher the moldy, decaying papers and decide what to do with them, meaning the sorting of documents is not expected to begin in earnest until today at the earliest.

"They (the document restorer) has to get here and look at everything," Weis said.

A representative from the State Land Office has also requested to be present for the reviewing process. The documents were buried on state land and the State Land Office has fined EOTT for not notifying the state it was digging up the documents and disturbing a remediation site.

Until this step of reviewing the documents is completed, there is no clear direction of what will come next in EOTT's search for information to help the company defend itself in a lawsuit that was filed against EOTT and Texas-New Mexico Pipeline Co. (TNPC).

The suit was filed in March 2001 after wells in Midland County were found to be contaminated from a pipeline spill that occurred in the early 1990s.

EOTT has always contended it is not responsible for the contamination because it had not yet purchased the portion of TNPC's pipeline assets at the time of the spill. In fact, it would not be until 1999 that the purchase would take place -- a purchase that, according to EOTT officials, occurred only a few weeks after the documents were buried.

"These documents may be important to us for several different reasons," Weis said. "The state may want copies, other companies may want copies, but we will not know until we know what we got."

Other oil companies, such as Royal Dutch/Shell, also hope to find documents to aid them in similar cases. TNPC is a subsidiary of Shell and portions of it were purchased by EOTT, which was at one time a subsidiary of Enron.

And along with the documents that had been buried south of Hobbs, EOTT officials believe there are other documents buried in other undisclosed locations although EOTT spokeswoman Weis could not provide more details of where.

The dig near Hobbs was started on May 15 after a confidential informant told EOTT that the documents it was searching for had been buried in the spring of 1999.

According to this informant he was "personally present when some records were thrown in a hole."

Weis said the eyewitness account states the documents were buried in early to mid-April of 1999. EOTT took formal possession of certain TNPC pipeline assets May 1 of that same year.

"These are definitely the documents that were supposed to be turned over to EOTT by Tex-New Mex when the transaction took place," EOTT attorney Dan Dolan said from Albuquerque.

A common misconception is that EOTT bought out all of Texas-New Mexico Pipeline and that is not the case.

"It is important for people to know that Tex-New Mex still exists as a separate company," Weis said. "We purchased the parts of its pipeline assets that complimented our system."

The buried documents were found in the site south of Hobbs where TNPC and ChevronTexaco had, in 1998, started removing and replacing the soil that had been contaminated by the pipeline spill.

Until the remediation was completed in 2001, the site remained an open 50-foot deep pit. -- providing an easy dumping ground for the 190 sacks of papers.


15 posted on 05/25/2003 2:57:31 PM PDT by CedarDave (The number of Saddam (non)sightings is rapidly approaching those of Elvis!)
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To: CedarDave
Thanks for staying on top of this. Keep us posted. This is very strange.
16 posted on 05/25/2003 3:08:18 PM PDT by Dog Gone
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To: CedarDave
Thanks, for your Monitoring of this!
17 posted on 05/25/2003 10:45:43 PM PDT by Ernest_at_the_Beach
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