Enron Mail

From:laura.glenn@enron.com
To:steven.kean@enron.com
Subject:EHS Weekly Report - 1/25/01
Cc:maureen.mcvicker@enron.com
Bcc:maureen.mcvicker@enron.com
Date:Fri, 26 Jan 2001 00:28:00 -0800 (PST)

ADMINISTRATIVE

2001 EHS Performance Targets - EHS Global Asset Operations has been working=
=20
with the regions to develop EHS performance targets. Targets will presente=
d=20
to Regional Senior Management next week.=20

Constellation Energy EHS Benchmarking - The EHS group in response to a=20
request met with Constellation Energy representatives and described Enron's=
=20
EHS management system in a four hour session in Houston.

EHS Enron Corp. Website - The website was activated at the end of Dec. 2000=
. =20
Since then approximately 400 users have visited the site registering=20
approximately 39,000 inquiries. Visitors are internal as well as external.=
=20

Conservation Committee - The Enron Conservation Committee met on Jan. 24 to=
=20
begin their activities for 2001. An aggressive work plan was agreed on. =
=20
Increased corporate visibility strategy was established. =20

EUROPE, INDIA and ASIA

EHS Conservation Survey - Bal Wong and Alan Stringer working with faciliti=
es=20
to complete the conservation survey. This survey will gather information=
=20
about energy usage and waste management practices at their facilities. Th=
e=20
information will be used to develop energy and material conservation=20
initiatives.=20

UK, Severnside Project =01) Alan Stringer supported UK Engineering team in=
=20
assessing whether any guidelines exist for distance for development from=20
underground cables.

Spain, Arcos Project =01) Alan Stringer supported Enron Spain in gathering=
=20
information on air impacts on vineyards.

Asia, 2001 EHS Support Plan =01) Alan Stringer and Bal Wong prepared the 2=
001=20
EHS Support Plan. The plan will be submitted to Asia Region Senior Mgmt.=
=20

Guam, Marianas Energy Co. - Bal Wong provided orientation about the spill=
=20
plan (SPCC) to the Operations Department and completed the plant weekly=20
inspection. Also assisted in a fire drill, which include respiratory=20
protection training. =20

CALME

Panama, Bahia Las Minas Power Plant (BLM) - Donnie Willmann, Gus Eghneim,=
=20
Bill Curra, and Ramiro Garcia completed a fatal flaw analysis for a potenti=
al=20
expansion project in Panama involving the addition of 3 internal combustion=
=20
engines at BLM. Preliminary results indicated that actual emissions=20
monitoring should be conducted to confirm ambient air quality (estimated=20
emission factors used show the proposed project would not meet SO2 ambient=
=20
air quality standards. BLM agree to conduct the emissions monitoring in=20
February. =20

SOUTH AMERICA

Brazil, Cuiaba - Edgar Zuleta completed the implementation of the emergency=
=20
action plan for Bolivia Cuiaba Pipeline.

OEC / NORTH AMERICA

Quebec, Canada, Daishowa Paper Manufacturing Co. - Scott Watson participate=
d=20
in the Enron Corp. EHS Overview presentation to Eric Conner (Enron North=
=20
America).

Mobile Energy Services Company - Scott Watson provided presentation materia=
l=20
requested by Sappi regarding 1). Safety Statistics for existing managed OEC=
=20
facilities and 2). OEC=01,s Safety Vision and Safety/Health Program. This =
is=20
part of the transition process. OEC to operate this paper mill on April=
=20
1st, 2001.

Enron North America, Crisis Management Plan - Scott Watson prepared a Crisi=
s=20
Management Plan Template for Enron (ENA) attorney Peter del Vecchio.

New Jersey, Garden State Paper Company - Scott Watson contacted Marty Blick=
=20
(Acting General Manager) on 1/23/01 to discuss Enron=01,s Corporate EHS=20
Services. Scott Watson scheduled to conduct an EHS Audit during the 1st=20
Quarter of 2001 at this facility.=20

EES - Power Distribution Project - Gus Eghneim is supporting the=20
environmental permitting activities for several western power distribution=
=20
projects. The work includes developing permitting scenarios for several=20
states and for various types of applications.

ENA, Cleburne Cogeneration Plant - Gus Eghneim is reviewing a draft Title V=
=20
permit issued by the TNRCC. Comments will be submitted to the State and th=
e=20
facility by January 29, 2001.

Enron Transportation Services, Cunningham Compressor Station - Gus Eghneim =
is=20
reviewing a PSD permit application developed for Cunningham compressor=20
station to allow for 100% natural gas firing.

GREENFIELD CAPITAL PROJECTS

UPDATES APPEAR IN BOLD BELOW:

RioGen/Eletrobolt PPs (Brazil)- Joe Kolb reports that permitting continues =
to=20
proceed quickly. A public meeting for the area where the pipeline will be=
=20
constructed will occur shortly. There are still issues with Petrobras and=
=20
CEG to work out. It could be that the pipeline will not be constructed as=
=20
quickly as needed.

Metgas Pipeline (India) - Susan Worthen confirmed with Lauren Iannarone tha=
t=20
the Metgas Pipeline has been cancelled due to the lack of customers and mos=
t=20
development team members have been redeployed.

E Power Corp, Japan Power Plant - Joe Kolb met with Brian Stanley last week=
=20
to discuss the potential power plant project(s) in Japan. Brian confirmed=
=20
that there are three power plants at three separate locations being=20
considered (rather than one power plant at three possible locations) and th=
at=20
each site is at a current industrial/port location. Joe will coordinate hi=
s=20
review and monitoring of the projects with Alan Stringer (EHS Europe). =20
Preliminary indications are that it will take up to 7 years to obtain all o=
f=20
the environmental permits.

Isle of Grain Power Plant (England) =01) Joe Kolb completed his review of t=
he=20
nontechnical summary of the 1998 environmental impact assessment. The=20
proposed power plant would be located within an industrial complex, which i=
s=20
good from an environmental standpoint. It appears that the environmental=
=20
review is being done well.

Project Quail/Tex Mex/Salsa - Joe Kolb reports that this project (known und=
er=20
various names) involves a 6-mile power line for transporting electricity to=
=20
Mexico from the Brownsville, Texas area. Joe spoke with Dave Kellermeyer=
=20
(ENA) and received a project overview. Joe asked Dave to be particularly=
=20
attentive to issues associated with bird collisions with the proposed power=
=20
lines. Dave sent a copy of a letter from the US Fish and Wildlife Service=
=20
that expressed similar concerns.

ACQUISITIONS

Project Crane (Quebec, Canada and Port Angeles, Washington Pulp and Paper=
=20
Acquisition) - Don Stevens has been informed that Eric Connor (Director,=20
Enron Industrial Markets) will be managing the transition for EIM. Eric me=
t=20
with members of the corporate EHS and Responsibility staff to review our=20
services. He will have follow-up meetings directly with Gus Eghneim and=20
Scott Watson regarding the transition and operations support. Eric also=20
expressed an interest in the EHS's assistance in a potential tissue factory=
=20
being considered by EIM and will contact Susan Worthen for follow-up.


Military Base Privatization (Maxwell AFB) - RAC Underwriting contacted Susa=
n=20
Worthen regarding the DASH for Maxwell AFB. Don Stevens provided follow-up=
=20
with the RAC group.

CWT Thermo-Depolymerization (EES New Technology) - Don Stevens submitted th=
e=20
Environmental Issues Matrix to Bruce Stram, Gene O'Gorman and Susan Worthen=
.

North Carolina CF Power Plants - Don Stevens reports that ENSR has complete=
d=20
the monitoring well installations and groundwater/soil sampling at Lumberto=
n=20
and Elizabethtown. Analytical results should be available early to mid nex=
t=20
week. =20

DEPARTMENT PROJECTS
Annual Report - Susan Worthen has received EHS performance data from GAO=20
Europe and Asia and EES. ETS and the remaining assets in GAO are expected =
to=20
submit data by the end of the month. Susan discussed possible storylines a=
nd=20
data inputs with Community Relations. Lauren Iannarone is leading the=20
coordination with Diversity. Susan is awaiting the image template=20
information (from the 10K report) from Dennis Vegas to determine if the bas=
ic=20
concept can be used fro the Corporate Responsibility report. =20

BMPs - Susan Worthen discussed with Shell International the prospect of=20
performing a "peer review" of the Pipeline Construction BMPs. Joe Kolb wil=
l=20
follow-up with the Shell contacts. Susan will also extend an invitation to=
=20
Conservation International for a similar review. In addition, there is a=
=20
potential to discuss or revise the BMPs over the next year in coordination=
=20
with the Biodiversity Forum (see below for discussion).=20

EHS Web Site - Russ Tucker is providing more ergonomics information that wi=
ll=20
be placed on the website. Scott Watson is providing two health and safety=
=20
training videos for the web site. These videos are intended to be viewed by=
=20
new hires. Gavin Dillingham is persuading Enron Networks of the importance =
of=20
having these videos on-line and is pressing for Enron Networks to quickly=
=20
finalize a contract with a video streaming vendor. =20

Telework/NEPI Program - Gavin Dillingham and Catherine Querioga, HR, will b=
e=20
attending a conference on the morning of January 31st, to gather more=20
information on telecommuting. After this conference, a meeting will be set-=
up=20
with NEPI to push this program along. There has been a positive response fr=
om=20
Work Perks to possibly help pilot this program.

Hybrid Vehicle Program - Gavin Dillingham and a group from HR and the Fleet=
=20
Vehicle group will be meeting with Toyota on Monday to finalize discussions=
=20
on the discounts that Toyota can provide for Enron employees on the Toyota=
=20
Prius. Also, Gavin Dillingham will meet with Bruce Martin and Colleen Raker=
=20
of Enron Strategic Sourcing and Lilly Wells with HGAC on Tuesday, January=
=20
31st, to discuss further how Enron can implement hybrids into its fleet.=20

Asset Tracking Database - The database is currently being populated with=20
data. Susan Worthen will discuss the prospect of a larger EHS audience usin=
g=20
the database to update business unit project information at the next EHS=20
Direct/Indirect Staff Meeting.

GAO EHS Tracking Database =01) Gavin Dillingham is taking on the responsibi=
lity=20
of streamlining this database and improving its workability and capabilitie=
s.=20
b
Biodiversity Forum - Susan Worthen and Catherine McKalip-Thompson attended=
=20
the 2nd meeting of the Biodiversity Forum in London last week. This is a=
=20
forum representing 5 NGOs and 5 multinational energy companies. Enron will=
=20
host the next meeting, which has been scheduled for April 19 & 20. Susan i=
s=20
co-chairing a work group to draft a paper on the business value of=20
biodiversity/conservation. This activity allows Enron to develop a positive=
=20
response to shareholder proxy requests.

Corporate Responsibility Sub-Committee Meetings - Susan Worthen participate=
d=20
in several sub-committee meetings in support of the Corporate Responsibilit=
y=20
Task Force. Mike Terraso was elected to chair the Internal Communications=
=20
sub-committee.

Green Sourcing Initiatives - Susan Worthen provided a summary of=20
GreenOrder.com's capabilities and possible business upsides (for Enron) to=
=20
Eric Melvin (EES) and Darryl Cleveland (Global Strategic Sourcing). A=20
follow-up meeting with Global Strategic Sourcing will be scheduled to discu=
ss=20
supplier considerations and possibly setting green sourcing/purchasing=20
targets. This meeting will be coordinated with Henry Van as the chairperso=
n=20
of the Conservation Committee.

EHS Guidelines Revision - The EHS Council sub-committee will meet 02/08/01 =
to=20
discuss and agree on the preferred method of revising the EHS Guidelines, a=
s=20
well as the selection of consultants to submit proposals.

VOLUNTEER ACTIVITIES/COMMUNITY RELATIONS

MOPS 686 Donation - Joe Kolb reports that the Texas A&M meeting on January =
12=20
to review Enron's proposal went well. The university is pursuing additiona=
l=20
funding sources and participants with the goal of developing a 5-year fundi=
ng=20
program. They expect it will be about the end of March before they report=
=20
their results to Enron.

Enron Earth Day Festival - Gavin Dillingham and Charla Reese met with Trash=
=20
Bash on Tuesday, the 23rd, to discuss the logistics of leveraging Trash Bas=
h=20
with the Buffalo Bayou Challenge. Trash Bash provided great information=20
concerning supplies and how to efficiently and effectively pick-up the tras=
h.=20
Charla Reese, Gavin Dillingham and Joe Kolb are meeting today to finalize=
=20
some of the aspects of this challenge.=20

REGULATORY TECHNICAL ANALYSIS

Methanol Plant Emission Credits - Marc Phillips provided an evaluation of t=
he=20
potential value of emission credits for the Enron methanol plant to their=
=20
management.

Louisiana Title V Permit Renewals - Marc Phillips provided information from=
=20
LMOGA about Title V permit renewals in Louisiana to the appropriate ETS=20
personnel. Applications for renewal of the permits are required 6 months=20
prior to expiration, but the state agency is apparently not notifying=20
companies about this deadline.

Reciprocating Engine Control Technology - Marc Phillips provided ETS=20
personnel with industry studies about control technology that has been=20
applied to reciprocating engines, and data that SCR was not an effective=20
control technology for load-following engines. An ETS station in Kansas cou=
ld=20
be subject to PSD regulations and the agency may require SCR technology.

National Academy of Sciences (NAS) Report Issued - the NAS study released=
=20
1/17/01 justified the need for an ergonomics standard. The report indicates=
=20
that MSDs show evidence of being caused by workplace exposures and that=20
interventions can reduce those exposures and injuries. The importance of th=
is=20
study is in its being funded by Congress, which now is faced with the=20
decision to activate the never before used Congressional Review Act in an=
=20
effort to send to the President a resolution that would retract the recentl=
y=20
effective OSHA Ergonomics Program final rule.

Three New OSHA Final Rules - Russell Tucker is reviewing 3 new OSHA final=
=20
rules issued in the last week. They are the amendments to the Bloodborne=20
Pathogen standard, amendments to the Employee Injury Recordkeeping rule, an=
d=20
a completely new Steel Erection standard, all of which are extensive in the=
ir=20
content and importance in their impact on all Enron companies under OSHA=20
enforcement, except for the Steel Erection standard, which applies to the E=
CC=20
and NEPCO operations.

Enron Houston Work Related Injury/Illness/Accident Reporting, Investigation=
=20
and Record Keeping Protocol - Russell Tucker is making final revisions to=
=20
this protocol for use within the Houston office complex with publication to=
=20
the Enron Corp EH&S Intranet scheduled for this week. Revisions reflect=20
reviews and input from Wellness, Fair Employment, Legal, and Risk Managemen=
t.

Environmental Strategies Group

Competitive Intelligence

Power/Gas/Emissions Markets -- California Energy Crisis & Emissions=20
Regulation: ESG has given high priority to assisting Enron business units =
in=20
developing a strategy related to the impact of environmental regulation on=
=20
California's energy crisis. Jeff Keeler provided ENA traders and competiti=
ve=20
analysis groups with information regarding potential federal actions and Bu=
sh=20
administration political pressure for California to ease emissions=20
requirements on generators. Jeff also coordinated with Mark Palmer and th=
e=20
EGM emissions desk in talking to reporters about environmental regulation's=
=20
role in the California situation. Mary Schoen will be focusing on Californi=
a=20
in the coming weeks, helping to provide intelligence about state/local=20
actions to change environmental/emissions regulations and leading efforts t=
o=20
develop innovative solutions to acquiring offsets for new generation=20
development. Stacey Bolton's work on renewable energy issues will help Enr=
on=20
businesses in looking at additional opportunities to provide capacity to=20
California. The entire ESG will act as a resource for federal and state=20
government affairs as they offer policy solutions to the crisis.

Coal/Power Markets - RCRA Coal Ash decision: On Friday, January 19, a=20
Federal Court dismissed a lawsuit by environmental groups against EPA's 200=
0=20
determination that classified most types of fossil fuel waste as=20
"non-hazardous" under the RCRA hazardous waste laws. A decision against E=
PA=20
and industry could have imposed greater disposal costs on generators, havin=
g=20
significant impacts on power and coal prices and limiting generators abilit=
y=20
to sell ash for positive uses, such as cement making. Jeff Keeler advised=
=20
EGM coal, ENA power, and PGE of the decision.

Power Markets -- Environmental Disclosure: Stacey Bolton updated EES on t=
he=20
New York PSC's progress on developing environmental disclosure regulations=
=20
and what Enron's requirements will be. Stacey also provided the Texas grou=
p=20
information on the proposed label calculation rule and voluntary certificat=
es=20
market.

Advocacy Coordination and Business Support

Clean Air Act -- Federal Multi-pollutant Legislation: Jeff Keeler continu=
ed=20
development of strategy on a multi-pollutant cap and trade proposal for=20
submission to Congress and the new Administration. Jeff participated in=
=20
several industry strategy calls and organized visits of an ad hoc "Clean=20
Power" group to key staff on Capitol Hill and in EPA. Jeff interviewed=20
several law firms and consultants that the group may retain to assist with=
=20
technical legislative drafting and lobbying on the multi-pollutant bill. =
=20

Climate Change: Stacey Bolton represented Enron at a Pew Center on Climate=
=20
Change seminar in Portland, OR, speaking on Enron's renewable energy=20
products, regulatory hurdles in the retail renewable market, and the benefi=
ts=20
of renewable energy credit trading. Stacey made several contacts with=20
potential customers (Weyerhaeuser & Toyota - manufacturing) that she has=20
passed along to Enron businesses. Mike Terraso presented Enron's Greenhouse=
=20
Gas Inventory methodology. Jeff Keeler assisted Enron Europe and Governmen=
t=20
Affairs in developing final comments to submit to the UK government regardi=
ng=20
their proposed greenhouse gas emissions trading pilot program. Jeff also=
=20
answered inquiries from ENA power developers who are interested in=20
potentially selling carbon offsets through the purchase additional=20
land/forest resources along with power projects.

Power Quality: The entire ESG continues to provide a great deal of suppor=
t=20
to the EES Premium Power group as they develop and implement their business=
=20
plan to provide power quality and distributed generation services to=20
customers in the high-tech area. Mary Schoen worked on evolving=20
environmental regulations regarding distributed generation in California an=
d=20
Texas. Stacey Bolton provided support on renewable energy technologies an=
d=20
incentive monies. Jeff Keeler coordinated meetings with the US DOE, who is=
=20
interested in lending support to Enron projects. Enron is helping the DOE=
=20
staff and Bush transition team develop a FY 02 multi-million dollar funding=
=20
mechanism at DOE to support R&D and commercial applications for power quali=
ty=20
projects in the high-tech sector. In addition, DOE has committed some=20
immediate discretionary funding to existing Enron projects. Mary Schoen=20
organized meetings for EES on environmental regulation and the relation to=
=20
various power technologies.

Pipeline Safety Legislation & Regulation: Jeff Keeler held meetings in=20
Washington, DC to provide ETS and Federal Government Affairs with informati=
on=20
on activities in the 106th Congress and assist in developing a strategy in=
=20
the 107th Congress. Jeff organized meetings with policy makers and indust=
ry=20
organizations to ensure Federal Government Affairs' smooth transition into=
=20
assuming a leadership role on this issue.

Renewable Energy - California Customer Credit: Stacey Bolton provided=20
testimony to California Energy Commission (CEC) regarding the current=20
customer credit fund for larger users being prematurely depleted, and ways =
in=20
which the commission can ensure this doesn't happen with the future=20
allocation from 2002-2007. Stacey also submitted formal comments to CEC on=
=20
the allocation of the extended SBF program.

Renewable Energy Credit Trading: Stacey Bolton talked to New York PSC staf=
f=20
regarding their quasi-trading program (conversion transaction) for renewabl=
e=20
energy. Enron submitted joint comments last summer, and NYPSC staff=20
confirmed that many of our recommendations will be incorporated into the=20
final rule, to be released at the end of the month. Stacey informed EES of=
=20
this win. Stacey is also working with Texas renewable coalition to fight=
=20
hefty charges for the REC program. Charges could act as a disincentive to=
=20
renewable generators thinking about building projects & raise the price of=
=20
retail products in TX. =20

Renewable Energy Trading/Products: Mike Terraso and Stacey Bolton met with=
=20
Elliot Mainzer of ENA West structuring for a strategy session regarding his=
=20
development of a wholesale renewable energy desk. Stacey is assisting Elli=
ot=20
with information for inclusion in his business plan. Stacey also met with=
=20
Elliot and EES to discuss arrangement between an ENA/EMPI renewable wholesa=
le=20
desk and EES. =20

Environmental Disclosure: Stacey Bolton is working with a law firm in=20
Maryland to submit reply comments arguing against the Commissions' intent t=
o=20
go with a PJM tracking system for disclosure. Stacey is coordinating a joi=
nt=20
response with several stakeholders (PG&E national energy group, Green=20
Mountain, and possibly some utilities/affiliates).

2001 Strategies for Business Support: ESG met with EES' Heather Mitchell=
=20
and Elizabeth Howley to discuss their 2001 objectives and how we can assist=
=20
them over the next year. They are interested in promoting the role of ener=
gy=20
efficiency in reducing emissions and monetizing the benefits that they help=
=20
customers accrue. They are also interested in assistance with renewable=20
energy strategies and EPA Star programs. Stacey Bolton also participated i=
n=20
the EHS meeting with Enron Industrial Markets to inform him of our group's=
=20
capabilities, and followed up with an e-mail.

Presidential Inauguration: Environmental Strategies participated in sever=
al=20
inauguration activities. In addition to participating in the Enron events,=
=20
ESG sponsored the "Environmental Inaugural Ball" which was a smaller event=
=20
with participation by companies, organizations, and policy makers in the=20
environmental area.