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Tom , I appreciate the e-mail - sorry for the delay in response.
I am on-side with all your points. On the New Albany retrofit, I want to ensure that I am not replacing one patent problem with another so a clear "title" up front on the new equipment will be important. However, I will be interested in hearing your solution especially if it can further reduce NOX and increase our operating hours. I share your interest in the FT-4 project hopefully we can take that to the next level. Please stay in contact. Regards Delainey ---------------------- Forwarded by David W Delainey/HOU/ECT on 09/06/2000 03:39 PM --------------------------- "Tom K. Churbuck" <tchurbuck@powermfg.com< on 08/31/2000 10:21:54 AM To: "'David.W.delainey@enron.com'" <David.W.delainey@enron.com< cc: Subject: Houston Meeting Dave, Thank you for taking the time to discuss the issues and opportunities facing our companies. I did not expect to have such an audience. I came seeking business advice on the litigation and feel I accomplished a lot more. I apologize for not contacting you directly, but I was unaware that you were now responsible for all of the groups within ENA. Congratulations !!!!! Here is what I came away with: Litigation GE has proposed a settlement that includes a proposed press release unacceptable to PSM. I have our attorneys working on drafting a response to GE and pursing the possibility of eliminating the joint press release altogether. If common ground cannot be reached we will pursue other legal options. Private Placement The book has been released to Enron & Calpine. I understand your position concerning participation and the question of the ongoing litigation. I am very open to the additional warrant option. Mike Miller talked to me about it after the meeting and we will discuss it next week. New Albany Retrofit I have asked my engineers to formulate a plan to upgrade the units at New Albany with our latest 6 ppm liners and fuel nozzles. We are currently manufacturing a full set for a 7EA machine. We haven't firmed up the test dates but we need to seek approval by ENA & OEC to use one of the Doyle machines. This is a significant leap in technology that many of our clients are extremely interested in. We now have the only single digit dry low Nox system that can be used on multiple machine types to include Westinghouse 501D5A, ABB 11 N1/N2, GE F6 / F7. FT4 Mobile Unit I understand from Mike Miller you want to slow the pace down on the first ten units to "Learn out" the manufacturing and business process. This will ease our pain level on schedule. My engineering staff is very excited with this program because it involves aircraft engines and they can apply their true skills. We just hired the program manager named George Kirsby. He is currently in charge of the $4 billion Joint Strike Fighter engine design program for Pratt Whitney / Boeing. I figure he should be able to manage the mobile unit project. At some time in the near future I would like to arrange a program presentation for you in Houston. I need to give Kirsby a few weeks to get his arms around the project and will propose dates for you in the future. We need to expedite the formation of the Joint Venture company as we are already being approached with deals to place these units. I really value your support and you can always count on our loyalty to Enron. Best Regards, Tom Churbuck President Power Systems MFG., LLC Tel: 561-347-2408 Ext 208 Fax: 561-347-2257 Cell: 561-213-5161 tchurbuck@powermfg.com www.powermfg.com
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