Black Mesa Pipeline Co

fyi
---------------------- Forwarded by Steven J Kean/HOU/EES on 12/17/99 08:32
AM ---------------------------

Gary Fitch@ENRON on 12/16/99 09:55:24 AM
To: Fred Rimington/NPNG/Enron@ENRON
cc: Robert Hill/NPNG/Enron@ENRON, Larry DeRoin/NPNG/Enron@ENRON, Dave
Rhodes/NPNG/Enron@ENRON (bcc: Steven J Kean/HOU/EES)
Subject: Black Mesa Pipeline Co
Cessna TU206G Pipeline Patrol Aircraft

Fred, below is the report from my chief of Maintenance regarding the Black
Mesa aircraft.

In a nut shell, after reviewing this information, I feel it would be
appropriate to contract for this service. The liabilities associated with it
are not worth it when you consider it can be done, probably less than you are
paying now, by a local provider and receive the same results.
We would be more than happy to provide you with an approximate value for the
aircraft and get you in touch with a broker to sell the TU206G.
If you plan on continuing this operation with the Mesa owned aircraft, I
suggest you put the responsibility in the hands of an aviation contractor who
will be ultimately responsible to Mesa, not only with the upkeep of the
aircraft, services/reports desired on patrol, but also the contracting of
flight crews.
If you desire, we will locate a contractor in Arizona to review the
operation. I would expect the cost not to exceed $2,000-$3,000 at the most.
Please call if you have any other questions or if you desire any additional
help.
---------------------- Forwarded by Gary Fitch/HR/Corp/Enron on 12/16/99
09:12 AM ---------------------------

Keith Jones
12/16/99 08:58 AM

To: Gary Fitch/HR/Corp/Enron@Enron
cc:
Subject: Black Mesa Pipeline Co
Cessna TU206G Pipeline Patrol Aircraft

Gary,
I spoke with a Mr. Sil Perla, pipeline patrol manager for Black Mesa Pipeline
Co., Tele 520-774-5076. As follows:

Aircraft: 1977 Cessna TU206G "Turbo Stationaire" Six place single engine
high wing aircraft
Hours: ACTT 3270 Engine Time since new 350 hrs PropTime since overhaul
1725.0 hrs (O/H date unknown)
Insp Program: 50/100 hr inspections and Annual Inspections. Approximately
two 100 hr inspections per year average. Last Annual inspection
completed July 1999.

1) No maintenance performed "in-house". All maintenance performed at Arizona
Aircraftsman Inc., Presscott, Arizona. This facility is a Certified Repair
Sation and a Cessna factory authorized service center.
2) Maintenance is scheduled by the pilots. Mr. Perla doesn't appear to get
envolved in the scheduling of maintenance. I spoke with Mr. John Aderholt at
Arizona Aircraftsman, Inc. and he said that the pilots schedule and deliver
the aircraft for maintenance. I asked how AD's and SB's were tracked and he
seemed to feel that they weren't. The only time AD's/SB's were checked was
when the aircraft was in the maintenance facility. Mr. Perla said he was not
familiar with Airworthiness Directives (AD's) and more or less confirmed
this. Mr. AderholtArizona Aircraftsman said the aircraft was in very good
condition and that it was a low time aircraft. He said they did very
thorough inspections and that Black Mesa usually didn't have a problem with
any needed repairs.
3) The aircraft is used twice a month and flies a 546 mile trip at 300 feet
above ground level, VFR day only. The aircraft averages 20 - 40 hours per
month. Mr. Aderholt mentioned that the aircraft had flown 50 hours since the
Annual inspection in July this year. They occasionally will have a passenger
but he said this is rare. If someone wants to fly along the patrol the
aircraft will stop and drop someone off at a plant, etc., but again this is
rare.
4) He uses "rental pilots" for the patrols. Currently he only has two he
uses. One has over 2000 multi/single time and the other has over 23000 hours
in a little of everything. The main "go-to" pilot is a gentleman named Rick
Olsen; he's the 2000 + hr guy. Mr. Perla said they both qualify for
insurance purposes.
5) The pilots will review the maintenance logs for currency and accuracy and
the repair invoices for discrepancies and action taken. Mr. Perla didn't
seem to get envolved in this. I further confirmed this through Arizona
Aircraftsman; that Mr. Perla definately does not get envolved in the
maintenance of the aircraft. He leaves it strictly to the pilots. There are
only two repetative AD's on the airplane, both due each 100 hrs.

Summary: Mr. Perla said he has been with Black Mesa for two or three years
and that he was fairly new at this. My impression is that he doesn't get
envolved with the particulars of aviation and therefore doesn't really have
much input as far as the actual operation and maintenance of the aircraft is
concerned. The aircraft itself is probably in very good condition and is a
very reliable workhorse that can endure its fair share of rough usage.
Although the aircraft is a simple and durable single engine aircraft; and its
operation is relatively easy. I believe it would be prudent to conduct a
thorough review of the aircraft and records. And establish a stable base of
operations that is familiar with the legalities, and safe operation of a
single engine aircraft. In my opinion it appears that no one is paying
attention to the details!
A few items in particular are:
a) The prop overhaul date is unkown. The factory recommends an overhaul each
five years.
b) No one is responsible for AD's and SB's. Apparently they do not go to Mr.
Perla, but to some other office.
c) Other details like ELT battery dates, operation in accordance with FAR's
etc. may not be monitered adequately.
d) Mr. Perla mentioned that he is going to have some interior work and
avionics upgrades next year. Assuming his limited knowledge of aviation,
what assurances do we have of a legal and safe installation.