Enron Mail

From:michael.terraso@enron.com
To:steven.kean@enron.com
Subject:EHS Weekly Report
Cc:maureen.mcvicker@enron.com
Bcc:maureen.mcvicker@enron.com
Date:Mon, 6 Nov 2000 02:30:00 -0800 (PST)

EUROPE, INDIA and ASIA
=20
Dabhol Power Plant Visit =01) Tentative date for Alan Stringer and Bal Won=
g to=20
visit Dabhol Plant is the week of Nov. 13. =20

UK =01) Isle of Dogs New Project =01) Supporting Engineering Services in=20
preparation of EIA and IPPC permit application.=20

Guam, Marianas Plant - Bal Wong identified minor valve leaks noted during=
=20
weekly site SPCC inspection. The October '00 monthly environmental repor=
t=20
was submitted to EPA. Two electrical deficiencies were identified and=20
corrected during a safety inspection. =20

CALME

EcoElectrica Environmental - EcoElectrica submitted a request to modify it=
s=20
Puerto Rico Environmental Quality Board construction permit to make the=20
construction permit and EPA PSD permit consistent. The plant management is=
=20
preparing a plan to request modifications to its current EPA PSD permit and=
=20
currently preparing its Title V operating permit. Marc Phillips, Gus=20
Eghneim and Donnie Willmann will review the Title V Permit.=20

EcoElectrica Safety - Donnie Willmann will assist EcoElectrica to identi=
fy=20
training requirements based on OSHA 200 requirements and Enron Guidelines.

Panama San Francisco Site - Removal of impacted soils is completed. =20
Confirmation sampling results from the excavated areas are expected to be=
=20
available this week. If results indicate no contamination the areas will b=
e=20
backfilled with clean soil.


SOUTH AMERICA

Brazil/Bolivia, GOB-GOMT Environmental Audit / HSE Audit Follow-up - Edgar=
=20
Zuleta will coordinate the safety audit follow up to the Brazilian sector o=
f=20
the Cuiaba gas pipeline project starting on November 6.=20

Bolivia, Transredes - Edgar Zuleta organized and conducted NG and LPG safet=
y =20
"Train the Trainer" training to selected Transredes locations. David Miller=
=20
from Enron ESS group assisted.=20

OEC / NORTH AMERICA

2001 Safety Action Plan - Scott Watson presented to OEC management the=
=20
Facilities 2001 Safety Action Plan. =20

Brownsville, TN Enron OEC Facility- Scott Watson conducted an EH&S Audit at=
=20
the Brownsville Facility on Nov. 30 - 31.=20

2000 Peakers, Due Diligence =01) Gus Eghneim continues to prepare response=
s to=20
questions received from potential buyers of the 2000 Peakers. Responses wi=
ll=20
be submitted to Enron legal department.

EES Military Installation Proposal - David Ronkainen met with Stephan Laroc=
he=20
to provide him with information about the operation and maintenance of=20
sanitary sewers, pump stations and various wastewater treatment processes. =
=20
Stephan is preparing an Enron proposal to provide O&M utility services to=
=20
U.S. military bases.

OEC Peaker Plants Hazardous chemicals report/notification - Gus Eghneim=20
discovered the peaker plants use acid-lead batteries containing sulfuric ac=
id=20
and lead in quantities (aggregated) over the above regulatory thresholds. =
=20
Appropriate reports were submitted to the state and local emergency respons=
e=20
agencies for all peaker plants on October 31, 2000.=20

REGULATORY TECHNICAL ANALYSIS

Texas Railroad Commission (TRC) Spill Cleanup Guidelines -- Jim Peterson=20
provided information to ETS on new versions of two Texas Railroad Commissio=
n=20
spill cleanup guidelines, one for condensate and the other for crude oil=20
released into non-sensitive areas. The condensate guideline will be replac=
ed=20
when the TRC issues their RBCA guidelines.

Texas Emission Reduction Credits (ERCs) - Marc Phillips provided Janel=20
Guerrero with information about the fact that ERCs will be devalued on=20
December 6 (permit applications using ERCs should be submitted by November =
22=20
to be administratively completed before December 6). He also provided=20
information to her about the non-attainment and trading regulations that=20
apply to power plants in east Texas.

Bammel Engines - Marc Phillips attended a meeting with HPL and ENA to discu=
ss=20
starting four engines at Bammel. The engines would be used to compress gas=
=20
for delivery to a gas-fired power plant that is scheduled for the Houston=
=20
area in 2002. This is a very complex issue since Emission Reduction Credits=
=20
were generated when the engines were shut down and there are non-attainment=
=20
regulations for the Houston area that will be finalized on December 6.=20

Natural Gas STAR Program - Marc Phillips provided information to Scott=20
Vonderheide in Investor Relations about the Natural Gas STAR Program

ETS Greenhouse Gas Emissions Credits - Marc Phillips attended a meeting wit=
h=20
ENA and ETS about the possible sale of greenhouse gas (methane) emission=20
credits from ETS to ENA's traders. The value of the transferred credits wou=
ld=20
be about $10,000 and the trade would promote the idea that greenhouse gas=
=20
credits have value. ETS is considering their offer.

INGAA NSR Task Group - Marc Phillips at ETS's request is heading a newly=20
formed INGAA Task Group on New Source Review (NSR). In the first conference=
=20
call for the group the history of NSR as it relates to the utilities and=20
pipelines, the Appeals Board decision against TVA, and the anticipated Core=
=20
Program were the major issues discussed. It was decided that the group shou=
ld=20
set up a meeting with the turbine vendors, decide on a long term plan to=20
address the NSR issue, and prepare a NSR primer.

Construction of OSHA 200 Logs - Russell Tucker is leading the project to=20
create the OSHA 200 Logs and supporting documents for the Houston Enron=20
complex embodying the years 1995 through mid 1999. All affected employees=
=20
have been identified and the conquest for obtaining the supporting document=
s=20
has begun with the assistance of Travellers Insurance.

Enron Office Ergonomic Program - Russell Tucker provided Mike Terraso with =
an=20
implementation plan for the integration of the developed Enron Office=20
Ergonomic Program on a global bases. Information from NAM indicates Congres=
s=20
will allow OSHA to publish a final rule on its Ergonomic Program in the FR=
=20
around November 13 to the 17, 2000.

RSPA Notice of Proposed Rulemaking (NPRM) - Russell Tucker is reviewing a=
=20
just released NPRM that would amend the Hazardous Materials regulations to=
=20
maintain alignment with international standards.=20

GREENFIELD CAPITAL PROJECTS

RioGen/Eletrobolt PPs (Brazil)- Joe Kolb arranged a meeting to discuss=20
rerouting the pipeline. The consensus was that the orphanage/school must be=
=20
avoided. Other routes are under consideration. Dealing with public safety=
=20
concerns may end up being most important aspect of choosing another route. =
=20

Powertel - It appears the project will have minimal environmental impacts=
=20
because the cable is being suspended aerially from the existing electric=20
transmission towers and is being buried only at substations. Joe Kolb is=
=20
sending a list of comments and questions to Mr. Jain for his response. Due=
=20
to the high level of safety risks associated with stringing the fiber cable=
=20
above live wires, Joe forwarded the materials to Henry Van. Also, Enron=20
India is planning to string 1,600 miles of cable in another state.=20

ACQUISITIONS

Privatenel (Nicaragua) Power Plant Privatization - Enron is still pursuing=
=20
the project. RAC has reviewed the model, requested clarification and has=
=20
received the clarification comments. Enron has informed ENEL that we want =
to=20
discuss changes to certain contracts. No bid date has been set. Enron leg=
al=20
risk has issued a matrix for review.

Project Crane (Quebec, Canada and Port Angeles, Washington Pulp and Paper=
=20
Acquisition - Enron did submit a non-binding bid for Quebec City. We are=
=20
currently in negotiations over the terms of our bid and there is at least o=
ne=20
other bidder. No further due diligence is planned at this time.

Project INGA (California and Pennsylvania Power Plant Acquisition) - George=
=20
Schaefer informed Don Stevens that Enron met with the seller's agent this=
=20
week to negotiate various details. The DASH has not been sent for approval=
. =20
It is anticipated that document signing will take place the third week of=
=20
November.

CWT Thermo-Depolymerization (EES New Technology) - Don Stevens is preparing=
=20
an environmental issues matrix for the various feedstocks which may be used=
=20
in the process.

Project Delta - Don Stevens has completed the review of Dames & Moore's=20
Preliminary Environmental Reviews of four potential underground natural gas=
=20
storage well locations. The proposed locations are in the states of=20
Washington, Utah and New Mexico.

Project Toucan (Acquisition of GA Pacific Pulp and Paper Mills) - Don=20
Stevens assisted in the due diligence site visit of Leaf River on October 2=
9=20
- 30, 2000. A follow-up meeting on the Team's findings was held on October=
=20
31, 2000. Enron will be sending a small Team to Woodlands on November 6,=
=20
2000 to investigate the issues regarding labor contracts and proposed state=
=20
regulations concerning timber cutting. Should the Team find that these=20
issues can be overcome, the full Team will conduct a site visit possibly th=
e=20
following week.

Massey (JV Coal Mine) - Enron currently owns property (jointly with=20
undisclosed partner) adjacent to an existing coal extraction mine owned and=
=20
operated by Massey. Enron would like to enter into a partnership with Mass=
ey=20
to extract the coal from the undeveloped site via the existing mine. The=
=20
undisclosed partner would hold a 40% "silent" interest, Massey 40% and act =
as=20
operator, and Enron 20%. The due diligence has already been conducted. =20
Before the deal completed RAC review, Massey had a major spill of coal=20
slurry, resulting in contamination of surface waters and intake systems in=
=20
northern Kentucky. Susan Worthen was contacted by RAC to evaluate the=20
potential cost of cleanup with Massey's estimation of damages and if they=
=20
will likely remain on an operator's banishment risk. Susan is coordinating=
=20
the evaluation with Dave Nutt/Frank Smith, Jim Alto (mining consultant=20
involved in the due diligence) and Bill Giuliani (Enron commercial manager)=
.

DEPARTMENT PROJECTS

EHS Web Site - The development of the web site is moving , and it looks lik=
e=20
it will be launched by December 1st.=20

Telework/NEPI Program - Gavin Dillingham has been in contact with the=20
National Environmental Policy Institute (NEPI) and has set up a meeting for=
=20
November 15 to discuss the opportunities for Enron to earn emissions and ta=
x=20
credits by participating in a nation wide teleworking program. This program=
=20
through NEPI may also be applied to Enron=01,s possible development of vanp=
ools=20
and Enron providing 100% subsidies for Metro bus riders.=20

Clean Energy Incubator - Gavin Dillingham met with Bruce Stram to talk abo=
ut=20
the opportunities and possibility of Enron developing an incubator to assis=
t=20
inventors/entrepreneurs of clean energy technology bring their products to=
=20
markets. Bruce conveyed that he did not necessarily think that EES would b=
e=20
interested. =20
Quantitative Risk Module - Don Stevens has learned that Enron contracts has=
=20
conducted initial telephone conversations with ThermoRetec's legal=20
representative. A conference call is scheduled for November 3, 2000 with=
=20
Enron contracts, ThermoRetec legal and Don Stevens to discuss the issues of=
=20
the contract. The inability to negotiate the contract by Strategic Sourcin=
g=20
has caused approximately a 6 week delay in the project.

VOLUNTEER ACTIVITIES/COMMUNITY RELATIONS


Solar Panel Donation - Joe Kolb reports that the panels and a cash donation=
=20
have been made to the Armand Bayou Nature Center for the Buffalo Exhibit. =
=20
The tentative date for their arrival is November 13. =20

OTHER

Pilko and Associate Sustainability Forum - Susan Worthen represented Enron =
on=20
a sustainability forum sponsored by Pilko and Associates. Other industry=
=20
reps were from the petrochemical industry and included Ashland, Shell=20
Chemical, Dow, and BASF. Attendees shared experiences and insights to=20
sustainability programs. It has not yet been determined if the forum will=
=20
continue.=20


Transredes - Lauren Goldblatt is coordinating an Enron/Transredes conferenc=
e=20
call to discuss Transredes plans to engage the international NGOs on=20
Transredes' expansion/looping project. Lauren has already advised Transred=
es=20
that they should not proceed and that we should discuss internally the full=
=20
ramifications of such actions.

ADVOCACY

Pipeline Safety Legislation: members of Congress have backed off efforts t=
o=20
pass the Senate (McCain) legislation in appropriations legislation, and mos=
t=20
attention is being paid to an "executive action," which was released shortl=
y=20
by the White House over the weekend. The Executive Order, suggested that=
=20
DOT move forward on liquid and gas regulations that include strong pipeline=
=20
integrity, R&D, and community right-to-know provisions, coupled with releas=
e=20
of a final pipeline integrity rule for liquid pipelines.


Renewable Energy Incentives: Stacey Bolton testified at two California=20
Energy Commission workshops addressing how incentive monies for renewable=
=20
energy should be allocated (about $1MM per/month stake for EES in the=20
customer credit program alone). Stacey will be submitted written comments.

Environmental Disclosure: Stacey Bolton is preparing comments on the TX PU=
C=20
staff's proposal for label calculation and a voluntary credits system. =20
Stacey is working w/ ENA and EES to get their input/feedback on the proposa=
l.

NOx SIP Call: Mary Schoen is participating in IN SIP workgroup to advocate=
=20
for fair treatment for new sources and energy efficiency set-asides. Ongoi=
ng=20
development in TN and IL. Trying to re-establish priorities with originato=
rs=20
based on sell of generation assets. =20

Power Quality: Mary Schoen is working with industry workgroup on developme=
nt=20
of new distributed generation permitting regulations in TX.

COMPETITIVE INTELLIGENCE/BUSINESS SUPPORT

Climate Change: Jeff Keeler met with the director of the Climate Neutral=
=20
Network (CNN), an organization of companies who are looking to certify thei=
r=20
products/services as having no impact on the climate. Enron is a member o=
f=20
the Network as a provider of services/technologies for companies who want t=
o=20
become climate neutral. CNN is also working on several projects that cou=
ld=20
be of benefit to EES and EGM efforts to measure, certify and trade GHG=20
emissions credits and risk management products. We will be organizing=20
meetings for CNN in Houston over the coming weeks.

Renewable Energy Credit Trading: Stacey Bolton met with ENA West Desk to=
=20
help them analyze some aspects of an RFP bid to Seattle Power. The West=
=20
Desk is interested in development of a National Credit Trading Program, and=
=20
they discussed the strategic advantages of developing a REC desk.

Power Quality: Stacey Bolton met with members of the new EES group --=20
"premium power" (Doug Condon and John Berger) to discuss their interest in=
=20
CA incentive monies for distributed generation and renewables, and the=20
direction of their group. Jeff Keeler is working on finalizing consultant=
=20
arrangements that would assist EES and other Enron units in obtaining feder=
al=20
and state assistance for distributed generation/power quality projects. Ma=
ry=20
Schoen is working with the Power Quality group to help them understand the=
=20
air quality and permitting procedures for a planned DG project in GA.