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Enron Mail |
I just spoke with Cheryl Harding about getting the proposed contract for
compensation credits. The NCL credits are for habitat disturbance only not incidental take. KWB credits which include both are $2000.00 per acre. If we paid that fee we would be covered but we still would have to buy credits from NCL. The end result would be EOTT would have 15.3 acres of unused credit in KWB's bank. Cheryl would like to charge EOTT the difference between NCL credit and KWB credits. If NCL credits are $1500.00 per acre we would own KWB $500.00 per acre for being covered under there Master Permit. Cheryl has a call into Mark Poe for this information and he has not returned her call. I spoke with Mark this morning about this issue, he said compensation credit prices had increased and was not sure what he quoted Gary. Mark will verify and get back to me. Scott if you can find anything in Gary's files about this that would be great. Edward Attanasio 02/26/2001 11:36 AM To: Kenny Maltby/Bakersfield/Eott@Eott cc: Bob Jacobs/Long_Beach/Eott@Eott, John_Shafer@Enron.com, Larry Campbell/ET&S/Enron@Enron, Louis Soldano/ET&S/Enron@Enron, Matt Hughes/Houston/Eott@Eott, Molly Sample/Houston/Eott@Eott, Rich Jolly/ET&S/Enron@Enron, Scott Jones/Bakersfield/Eott@Eott, Susan Ralph/Houston/Eott@Eott Subject: Re: Rogas Line -- USFW Approval The only reason we are notifying KWB of the purchase of NCL credits is that the letter from USFW requires us to. I don't know what NCL credits are going for these days, but Rick Suderman might be able to give some insight. (He was privy to some discussions with Aera about providing them power for the water system at NCL in exchange for a reduced price for credits.) Check with him. I believe the insurance certificate is required by the encroachment permit, is it not? When we first received that permit, I made the request of EOTT treasury for the certificate; but now that it is an ETS construction project, the thinking is that the certificate should come from ETS. I do not know the ETS process for getting one. Perhaps one of the CC-ed ETS folks can provide some insight as to whether ETS can take care of this, and how. Thanks. Kenny Maltby 02/23/01 11:24 AM To: Edward Attanasio/Remote/Eott@Eott cc: Bob Jacobs/Long_Beach/Eott@Eott, John_Shafer@Enron.com, Larry Campbell/ET&S/Enron@Enron, Louis Soldano/ET&S/Enron@Enron, Matt Hughes/Houston/Eott@Eott, Molly Sample/Houston/Eott@Eott, Rich Jolly/ET&S/Enron@Enron, Scott Jones/Bakersfield/Eott@Eott, Susan Ralph/Houston/Eott@Eott Subject: Re: Rogas Line -- USFW Approval Cheryl Harding at KWB was reviewing the approval letter from the Fish and Wildlife Service yesterday and was not ready to provide the proposed contract for acquisition of compensation acres or agree that a letter of credit would suffice for NCL credits. She did not understand why she needed to be notified of the credits being purchased from NCL. Unfortunately she is not in her office today. I placed a call to Mark Poe to find out what compensation credits and administration fees cost are at NCL. Do you know what they are Ed? This was something else Gary was doing. He has not returned my call. Ed we still need to provide insurance certificates to West Kern Water District before we can start construction, can you help with that? Edward Attanasio 02/20/2001 05:49 PM To: Kenny Maltby/Bakersfield/Eott@Eott, Scott Jones/Bakersfield/Eott@Eott cc: Matt Hughes/Houston/Eott@Eott, Bob Jacobs/Long_Beach/Eott@Eott, Susan Ralph/Houston/Eott@Eott, Molly Sample/Houston/Eott@Eott, Larry Campbell/ET&S/Enron@Enron, Rich Jolly/ET&S/Enron@Enron, John_Shafer@Enron.com, Louis Soldano/ET&S/Enron@Enron Subject: Rogas Line -- USFW Approval Randi McCormick just forwarded to me a letter addressed to EOTT, dated February 14, 2001 from the US Fish and Wildlife Service approving our project "for participation in the Kern Water Bank Compensation Bank," and authorizing the Water Bank "to extend their incidental take authority to you and your entire project under their Master Permit." This is, of course, very good news. The letter notes, however, that we still need to purchase compensation acreage both at North Coles Levee and at the Kern Water Bank. Specifically, we must do the following: (1) contact Cheryl Harding of Kern Water Bank to acquire 23.1 acres of compensation credits, and to get included in their Master Permit; and (2) get Cheryl Harding a letter from the Coles Levee Ecosystem Preserve (Mark Poe of Aera) stating that we have purchased 15.3 acres of credits for North Coles Levee, or that we have set aside that amount from credits we have in the past purchased. While I could make these contacts, I do not believe that would be wise because -- as Kenny can attest -- our past experience has been that whenever a lawyer contacts the Water Bank, it prompts them to automatically get their lawyers involved. And our experience has been that this only slows things down -- or worse. My suggestion therefore is that one or both of you gentlemen contact Cheryl as soon as practical and ask her for (1) proposed contract for acquisition of 23.1 acres of compensation credits and (2) perperwork to include EOTT (and its contractors) in their Master Permit. She should also be informed that, while we have not yet purchased the 15.3 acres of NCL credits, we will by the end of this week have a letter of credit posted as security, as allowed under our State Take Permit, to cover this amount of acreage. Ask whether a copy of this LC will suffice for her purposes, or whether we will need to have the actual acreage purchased. As this would remove a major impediment to construction of the new lines, it is important that we move on this will all deliberate speed. Please call me if you have any questions, or if you would like otherwise to discuss how to approach this issue. Thanks a lot. --ETA
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