Enron Mail

From:laura.glenn@enron.com
To:steven.kean@enron.com
Subject:EHS Weekly Report
Cc:maureen.mcvicker@enron.com
Bcc:maureen.mcvicker@enron.com
Date:Fri, 15 Dec 2000 05:09:00 -0800 (PST)

ADMINISTRATIVE
=20
EH&S Data =01) D. Willmann, David Ronkainen, and Sandra Maldonado develope=
d=20
charts for Mike Terraso comparing EHS performance in 1999 and 3 quarters 20=
00=20
for the Caribbean, Latin America, and Southern Cone operations. Data gaps=
=20
and reasons were identified. Mike reviewed data with Rebecca McDonald.

Enron EHS/Operations Audit - M. Terraso has met with Don Hawkins(Senior=20
Director ETS audits) and Phil Lowry (MD ETS Operations) and Rebecca McDonal=
d=20
regarding the current and possible alternative approaches to the Corp porti=
on=20
of the Operations/EHS audit program. Mike has developed and reviewed=20
verbally initial suggested improvements to the current audit, action plan a=
nd=20
implementation tracking process, including a greater corporate role.

Environmental Remediation Projects - D. Willmann and Scott Watson developed=
=20
summary for Mike Terraso of environmental remediation projects within Enron=
's=20
international operations. Mike reviewed information with Rebecca McDonald.

Spanish Version of Enron=01,s Safety, Health and Environmental Guidelines =
=01)=20
Ramiro Garcia in conjunction with a consultant (Franco y Asociados) complet=
ed=20
Draft of Spanish version of the Guidelines. =20

Enron Corp. Safety Video Project Script =01) Scott Watson and Victor Colin=
shot=20
video footage for general Enron office personnel orientation and contractor=
=20
orientation videos on Dec. 7 & 8. =20

CALME

Puerto Rico, San Juan Gas - D. Willmann met with Bill Middleton, EECC, and=
=20
then by conference call with ThermoRetec personnel to review environmental=
=20
and safety aspects of the proposed conversion of the San Juan Gas facility =
to=20
operate on natural gas and the remediation work that is to be completed at=
=20
the San Juan Gas site.

Dominican Republic, SECLP - D. Willmann met with Jonathan Ago to review th=
e=20
environmental and safety perspectives of the upcoming installation of a ne=
w=20
boiler at the Smith / Enron facility in Dominican Republic.

SOUTH AMERICA

Venezuela, Ventane Visit - Henry Van and Edgar Zuleta visited Ventane=20
facilities in Venezuela and gave workshops on EHS management system=20
optimization. =20

OEC / NORTH AMERICA

Medical Surveillance & Wellness Program =01) Scott Watson met on 12/14/00 w=
ith=20
Dr. Holland and Mary Ann Roman De Meza to complete the Wellness section of=
=20
the Medical Surveillance Program.

Garden State Paper =01) Scott Watson and Gus Eghneim conducted an EH&S Audi=
t of=20
this facility in Garfield, New Jersey on 12/12/00.=20

=01+2000 Peaker Facilities (Lincoln Center, Gleason & Wheatland) =01) Scott=
Watson=20
provided responses and pertinent information to Ross Newlin regarding=20
Safety/Health training issues at these facilities for Allegheny Power.=20

Semiannual Reports for Caledonia and New Albany =01) Ramiro Garcia complete=
d and=20
submitted to the state revisions to the semiannual environmental reports fo=
r=20
the first part of 2000. Revisions included more detailed information (i.e.=
,=20
reasons) for each period of excess emissions.

REGULATORY TECHNICAL ANALYSIS

Texas Upset and Notification Environmental Notice - Marc Phillips distribut=
ed=20
an Environmental Notice to ETS personnel regarding the revisions to the Tex=
as=20
upset and maintenance notification rules which are applicable to compressor=
=20
stations.

TNRCC Stakeholders Meeting - Marc Phillips attended a TNRCC stakeholders=20
meeting regarding draft revisions to a rule that would define maintenance a=
nd=20
also restrict the use of a general permit often used by ETS personnel to=20
authorize methane emissions from pipeline maintenance.

Sustainable Development Meeting - Marc Phillips represented Enron at the=20
Winter 2000 meeting of the Business Council for Sustainable Development -Gu=
lf=20
of Mexico.

NPDES Multi-Sector General Permit -- Jim Peterson distributed an informati=
on=20
email on the EPA reissuance of the NPDES multi-sector general permit for=20
storm water discharges associated with industrial activities to Enron=20
environmental personnel in affected states.

DOT Amendments to Hours of Service (HOS) Regulations - Russell Tucker, with=
=20
assistance from Jeff Keeler, issued comments to the DOT on behalf of Enron=
=20
ETS concerning the adverse impact the current proposed amendments to the HO=
S=20
regulation would have on the company's ability to operate and respond to=20
emergencies without an unreasonable increase in operating costs.

Petition for Extension of Time - Russell Tucker asked the NAM OSHA Steering=
=20
Committee to consider joining Organization Resources Counselors, Inc. (ORC)=
=20
in asking OSHA through a letter of petition for an extension of time to=20
establish full compliance with the Ergonomics Program Grandfather clause .=
=20
The request is under NAM legal review to ensure standing suits against OSHA=
=20
in connection with the Ergonomics Program final rule would not be adversely=
=20
affected.

ANSI Z10 API Task Force Membership - Russell Tucker has accepted a request=
=20
from API to be a member of the task force who will act as a committee membe=
r=20
to the ANSI Z10 Full Committee starting proceedings to establish an=20
Occupational Safety and Health Management Systems Standard. This standard i=
s=20
expected to be adopted as part of the international ISO certification=20
standards after acceptance by ANSI and likely to affect any revival of the=
=20
once proposed OSHA rule making on the same subject.=20

COMPETITIVE INTELLIGENCE

Clean Air - EPA Mercury Determination: On Thursday, 12/14, EPA issued its=
=20
mercury determination, deciding there is a need to regulate mercury emissio=
ns=20
from power plants and laying out a timetable for developing the necessary=
=20
regulations. EPA indicated that it would consider "flexible" measures for=
=20
complying with regulations, including trading, but no further details were=
=20
included in the determination. Jeff Keeler provided information on this=20
regulation to Enron Americas power trading and origination, EGM=20
coal/emissions traders, EES and other corporate groups.

Clean Air - Section 126 Rule Litigation: Federal District court in D.C.=
=20
will hear oral arguments on Friday, 12/15 on the EPA's section 126 rule,=20
which grants relief to northeast states who petitioned for greater control =
of=20
NOx at sources in "upwind" states. The federal Section 126 rule is=20
scheduled to go into effect for sources in May 2003 -- 1 year sooner than=
=20
similar state-developed regulations will go into effect for the same source=
s=20
under the NOx SIP Call. The outcome of the litigation is important because=
a=20
ruling for industry could give sources another year to plan for emissions=
=20
controls. Jeff Keeler will issue a report on the litigation to Enron=20
Americas, EGM, EIM, EES, and other impacted corporate groups.

Power Quality/Distributed Generation: Stacey Bolton and Mary Schoen=20
continued to provide assistance to EES' Premium Power group as they look at=
=20
environmental drivers for their business model. Stacey delivered detailed=
=20
information on federal incentive programs for distributed generation and Ma=
ry=20
provided assistance and analysis of environmental regulations in EES' targe=
t=20
states.

EPA Green Power RFI: Stacey Bolton provided information to EES (Richard=
=20
Ring) in response to an RFI for the supply of green power to EPA in Ohio. =
=20
(Part of the information that will be included in the RFI response will be=
=20
the Enron EHS annual report). Stacey also talked with APX about their=20
exchange in Ohio and the potential for EES to price out a deal for green=20
credits to use in the potential deal w/ EPA. APX is very interested in doi=
ng=20
a deal w/ EES, and has landfill credits for EES to bid on. Stacey provided=
=20
this information to EES.

Renewable Energy Credits: Stacey organized a conference call w/EGM and EES=
=20
supply desk to discuss potential partnerships with Clean Power Markets (Gre=
en=20
Credit Exchange and Verification company). EES will likely become an ancho=
r=20
customer of the exchange. Followed up with Richard Shapiro, Jim Steffes an=
d=20
Lisa Yoho regarding the potential partnership (Clean Power Markets had=20
originally approached Rick about a partnership & he passed it along to=20
Stacey.)

ADVOCACY/COMMERCIAL SUPPORT

Clean Air - NOx SIP Call: Mary Schoen continued work on development of Sta=
te=20
Implementation Plans (SIPs) in several key Enron States, including Illinois=
,=20
Tennessee, and Indiana. States had until October 31, 2000 to submit SIPs =
to=20
EPA for approval or face preemption by federal NOx rules, but EPA informall=
y=20
extended that deadline until the end of the year. Mary is submitting=20
comments to these states as they prepare their final SIPs.
Tennessee: will be less of a priority with the sale of the Brownsville=20
peaker to Cinergy, but the work done by Mary in the SIP development process=
=20
which gained allocation of allowances to Enron assets proved to be valuable=
=20
in the sale.
Indiana: Mary is working with EES to ensure allocation of allowances to=20
"energy efficiency" projects, which could prove to have value for EES and=
=20
customers.

Environmental Disclosure/Labeling: as EES will be entering Ohio on 1/1/01=
=20
in First Energy's territory, Stacey Bolton met with the EES reporting team=
=20
concerned about the label. Stacey suggested that since First Energy is=20
doing the billing function for EES' customers, EES lay off the disclosure=
=20
requirement on First Energy (First Energy will also be purchasing and=20
delivering the power). EES is attempting to implement this suggestion. E=
ES=20
is also actively looking at CG&E territory and needs to prepare a disclosur=
e=20
label. As Ohio's disclosure rule is ambiguous, Stacey has been coordinatin=
g=20
questions w/ Ohio PUCO staff regarding disclosure requirements.=20

Renewable Energy/Wind: Stacey is working with Enron Americas West Desk on=
=20
trading opportunities for wind energy in the west. DOE is organizing a=20
trading platform for the Western States, and Stacey provided information to=
=20
EA and is helping develop a strategy to optimize their value for wind energ=
y.

Pipeline Safety Legislation: In Congress' last minute efforts to pass=20
appropriations bills, rumors have circulated that there may be an attempt t=
o=20
attach pipeline safety legislation. Jeff Keeler worked to gather more=20
information on these efforts, and found that support of many key=20
congressional leaders for such an effort is missing. Jeff forwarded to ETS=
=20
and others a letter sent by Senator John McCain (a key pipeline safety=20
proponent) to congressional leaders) urging that pipeline legislation not b=
e=20
included in any appropriations bills.

GREENFIELD CAPITAL PROJECTS


Cuiaba Pipeline (Bolivia/Brazil)- Joe Kolb will be participating with=20
Catherine McKalip-Thompson (Enron Corp) in conducting a "lessons learned"=
=20
analysis for the Cuiaba Project and Transredes oil spill.

Lagos EPP (Nigeria) - Joe Kolb reports that the refurbishing and conversion=
=20
of the power barges is behind schedule. The first one is expected to go=20
online in March of 2001 and the last in November 2001.

RioGen/Eletrobolt PPs (Brazil)- Joe Kolb has discussed with Lauren Goldblat=
t=20
(Enron Corp) the perspective he gleaned from his inspection of the proposed=
=20
CEG pipeline that will provide natural gas to the RioGen/Eletrobolt=20
projects. Lauren is working with Enron SA to arrange a community meeting.

ACQUISITIONS

Project Crane (Quebec, Canada and Port Angeles, Washington Pulp and Paper=
=20
Acquisition) - Susan Worthen was notified by Gustavo Junqueira (Industrial=
=20
Markets Finance Manager) that this transaction has been approved by the Boa=
rd=20
and Enron is in the final stages of negotiating the Share Purchase Agreemen=
t=20
with the Seller. The Port Angeles, Washington mill will be excluded due to=
=20
environmental liability issues. Additional environmental due diligence is=
=20
currently being conducted on timber properties located near Quebec that are=
=20
harvested for construction lumber. Mark Greenberg (Industrial Markets=20
Attorney) is the interface on the due diligence. Gustavo, Susan, and Bob=
=20
Anderson (Pulp and Paper Technical) met to discuss the transition process a=
nd=20
on-going EHS support. Susan also took the opportunity to raise questions=
=20
regarding budgets and acquisition strategy for 2001. She agreed to provide=
=20
transition plans for previous EI projects to use as ticklers of items that=
=20
need to be addressed, such as payroll, conversion of accounting systems, HR=
,=20
etc. and will meet with Henry Van and his group to discuss transition and=
=20
operating support plans.

Project INGA (California and Pennsylvania Power Plant Acquisition) - Don=20
Stevens provided an interpretation of the impact of EPA's announcement=20
regarding the control (regulation) of mercury emissions. =20

Massey (JV Coal Mine) - The scheduled site visit by Don Stevens was cancell=
ed=20
by Massey due to disclosure concerns regarding current civil suits. Massey=
's=20
executive management apparently questioned Enron's interest in the spill=20
since it is not directly associated with the property transaction currently=
=20
being pursued. Susan Worthen notified the project team and RAC=20
representative of the current status and learned that this transaction will=
=20
not be concluded by the end of the year and additional time would be=20
available in January to visit these issues. =20

North Carolina CF Power Plants - Don Stevens reviewed the ENSR draft Phase =
I=20
Environmental Site Assessment, dated December 2000, and provided additional=
=20
questions. ENSR is currently conducting a limit Phase II and the report=20
should be available by December 22, 2000.=20

ISAGEN - Don Stevens reviewed Harza's "Technical Review of ISAGEN Generatin=
g=20
Plants" and reported to Mario Brunasso. It has been reported that the=20
Finance Minister of Columbia said that legal loopholes, possible changes in=
=20
the price-tag for ISAGEN, and the need to update paperwork related to its=
=20
privatization would now postpone the deal until June 30, 2001.

Project Canary - Don Stevens reviewed Pilko & Associates Environmental Risk=
=20
Identification for the Celgar Pulp Company. Susan Worthen provided an=20
Environmental Risk summary for the project team to use in the DASH.

DEPARTMENT PROJECTS

EHS Web Site - The website is currently on-line. On Friday, December15th, w=
e=20
will begin to promote the website on E-TV and also place a link to the site=
=20
on home.enron.com in the New and Notable section and in the Intranet Site=
=20
section. Phase II planning is beginning. Phase II will contain streaming=
=20
video, an International Legislative and Regulatory Database, access to a=20
compliance management calendar and the remaining information from the=20
Environmental Strategies Group. Phase II role out still needs to be=20
determined and will be dependent on the availability of Enron Networks staf=
f.

Telework/NEPI Program - Gavin Dillingham represented Enron at a meeting in=
=20
County Judge Eckels=01, office to discuss the National Telecommuting and Ai=
r=20
Quality Act with NEPI and the Philadelphia Steering Committee. Gavin is als=
o=20
meeting with Elham Shirazi of NEPI and a representative from Enron=01,s=20
transportation group to discuss the possibility and feasibility of Enron=20
providing a Vanpool for its employees. =20

Lifecycle Process - Gavin Dillingham is continuing to work with Susan Worth=
en=20
and AD Little on determining Enron=01,s products and services for the lifec=
ycle=20
study. Financial market trading activities will be segregated from physica=
l=20
market activities (those requiring a physical position in the market) and a=
=20
glossary of trading terms will be provided to make the document easier to=
=20
understand. Additional refinements of the services will also be conducted =
to=20
streamline the inventory. =20

Asset Tracking Database - The database is currently being populated with=20
data. Susan Worthen will be following up on the revision of the asset list.

Annual EHS Report - Susan Worthen, Lauren Goldblatt, and Catherine=20
McKalip-Thompson discussed data needs for the 2000 annual report. Lauren a=
nd=20
Susan met with Keith Micelli to gain insight on potential reporting issues=
=20
and contacts for Transredes and Cuiaba. Lou Soldano and Susan Worthen agre=
ed=20
to set up a meeting in early January to discuss EHS reporting of EOTT asset=
s=20
with Frank Smith, Dave Nutt, and Bill Kendrick.