Pueblo

Tino called this morning with a quick report. They are still negotiating
with DOE on a power plant deal, but it looks pretty shaky. The size of the
plant has grown to 380 MW, for reasons that are unclear to me. Tino has been
ordered to develop an exit strategy in case the power plant deal falls
apart. He says Dennis has about $3 mm in the project so far, most of it
related to the pipeline right of way. The have a binding 20 year agreement
with the tribes for the ROW that calls for a $100,000 minimum monthly
payment. I'm not sure the entire route is perfected or not or whether the
ROW agreement includes fiber optic rights etc. The question is whether we
are even interested enough to justify a closer look, since the rights Dennis
has pulled together will probably be available for cents on the dollar. I
told Tino I'd give him a call next week to let him know. At minimum, I'd
suggest we have one of our ROW guys take a look at whatever they've got and
advise us on what its worth. Your thoughts? DF