Pueblo

I just talked to Tino Monaldo, Dennis Langley's lawyer/project manager for
the Pueblo project. I explained Bill and Bill's credentials and concerns and
Tino suggested that a sit down between Enron and their government contracts
team might be helpful. He offered to do it in Houston, probably late next
week or the following week. Attending would be Dennis, Tino, and their
outside lawyers, Jim Slattery and Rick Harrington. Harrington is the key--he
is a retired military guy and one of the lead govt. contracts lawyers at my
old firm in DC. The would basically put on a dog and pony walking us all
through their sole source strategy, including their legal interpretations
and the allies they have lined up within DOE/DOD. Bill and Bill--does such a
meeting sound productive? If so, should we have outside govt. contracts
counsel present and if so, who do you suggest?

On a related note, Tino explained (without me asking or really caring) that
he was in the middle of a "big drafting project"--revising Dennis' joint
venture agreement with the Isleta. I took the opportunity to express my
concern at how far down the road Dennis is getting on the overall deal,
including structure issues, without knowing whether Enron is even on board.
I reminded Tino that GPG has not committed to participating in the pipeline
or the power plant, and that we have not obtained ENA's agreement to commit
turbines. Apparently Dennis believes that if the economics pans out, Enron
or someone else yet to be identified will magically jump in to the deal with
money, turbines, etc. If Enron does eventually decide to get into this
deal, the agreements and promises that Dennis has already made may need to be
revisited. Thanks for your patience on this project. DF