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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.
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