Various Environmental Issues

Good seeing you again. As I mentioned yesterday, I am sending you a copy of
the Conservation Easement that has been granted to Cal Dept of Fish and Game
over the NCL property. I would appreciate if you could get a copy to John
Schaefer (I couldn't find him in the Enron directory).

As you will see, the Conservation Easement references the State Endangered
Species Take Permit I gave you previously, so the two should be read in
conjuction. Also, I wanted to let you and whoever in environmental ends up
servicing the assets out here two other things: first, Kenny Maltby of ETS
Bakersfield is our designated "representative responsible for communications
with the Department and for overseeing compliance with th[e Take permit]", as
specified in section 5.1 of the permit. (Kenny and I are really the only
personnel in California who are aware of the Permit and its requirements.)

Second, various sections of the permit require use of " a knowledgeable,
experienced biologist." (See e.g., Section 5.4.) We have been using a
biologist in Bakersfield, Randi McCormick, for this purpose for years. I
strongly urge we continue to use her because she knows our operations, knows
our people, knows our contractors, knows our habitat, knows our permit
conditions, has good relations/credibility with Cal. Fish and Game and US
Fish and Wildlife, and has always been reasonable with and responsive to us.
I would like to get her on a contract wth ETS.

Lastly, I am getting more eager to see and discuss the results of the audit
now after your statements regarding the credibility of the sampling in the
1997 "baseline" study done by WZI. (It's a very interesting issue for many
reasons, which I'll spare going into here; obviously, the crux of my concern
is that it may not be much of a baseline at all.) So, I would like to have
some input into the question of how "resampling" would be done, if possible,
because of the Koch indemnification issues presented. So please be sure that
your enviro folks remember our EOTT company motto: "Call Before you Dig!"

Again, good seeing you and the crew, and I look forward to talking about
these and other issues again real soon. In particular, if there's any other
info i can get your enviro folks that they'd find helpful, please let me
know. --ETA