EHS Weekly Report

ADMINISTRATIVE

EHS Database - Donnie Willmann, Gavin Dillingham and Susan Worthen have bee=
n=20
working to transfer the database from Quality Management to EHS Corp. =20

EHS Global Asset Remediation Project Report - EHS Global Asset prepared the=
=20
remediation project report and submitted it to Mike Terraso. =20

EUROPE=20
Enron Metals =01) Alan Stringer is reviewing EHS requirements for Europe=20
assets. Reviewed contaminated land investigation required for planning=20
permission for new warehouse in the UK.=20

INDIA ,ASIA,CALME,SOUTH AMERICA
India, Dabhol Power Company - ThermoRetec submitted their groundwater=20
assessment report to DPC this week. Alan Stringer prepared remediation=20
scenarios and cost estimate for Dabhol Plant and submitted them to Henry Va=
n=20
for review with R McDonald

Guam, Marianas Energy Co. - Bal Wong conducted a weekly site Spill Preventi=
on=20
Control & Countermeasures (SPCC) inspection at Marianas Plant. Also=20
conducted one hour environmental permit, SPCC Plan training and 4-hr=20
Respiratory Protection Training and Fit Testing to Operations Department=20
Group C personnel. =20

Panama, Bahia Las Minas (BLM), Stack Testing - Ramiro Garcia completed=20
proposal negotiations with stack testing contractors. A service vendor was=
=20
selected by BLM with recommendations from EHS Global Assets. Stack testing=
=20
of BLM units is anticipated to be completed in 4-6 weeks.

Bolivia, Transredes Crisis Management Plan - Edgar Zuleta continues working=
=20
with the operations units in documenting the existing Crisis Management Pla=
n.=20

Bolivia, Transredes Technology Exchange Program - Edgar Zuleta supported=20
Transredes in a Technology Exchange program for Bolivia environmental=20
agencies.=20

Brazil, Yacuiba to Rio Grande Pipeline Project - Edgar Zuleta held a meetin=
g=20
to gather information on social issues for the EIA of this new pipeline=20
project.

Enron Conservation Survey - Edgar Zuleta is reviewing the Conservation=20
Survey questionnaire sent by some assets. To date TGS, Copergas, Pbgas and=
=20
Emsergas have submitted their questionnaires.

NORTH AMERICA

New Jersey, Garden State Paper Company - Scott Watson is preparing a=20
Contractor Safety & Health Guidelines Procedure to be implemented at this=
=20
facility. This procedure will also be implemented at Enron=01,s most recen=
t=20
acquisition, Daishowa Paper Manufacturing Co. in Quebec.

Enron Corp Safety Video Project =01) On February ,7 Scott Watson met with M=
ike=20
Terraso, Henry Van, Mary Ann Roman de Meza and Linda Adels to review the=20
draft contractor and new employee safety video tapes . The final videos wi=
ll=20
be incorporated into Enron EHS Web Page as well as the EHS Safety/Health=20
Program.

Enron Campus Safety Issues =01) On February 9, Scott Watson met with Mike=
=20
Terraso, Henry Van, and Bill Donavon to discuss safety responsibilities=20
related to the Enron downtown campus. =20

REGULATORY TECHNICAL ANALYSIS

Water Regulations -- Jim Peterson reviewed the implications of the recent=
=20
Supreme Court decision on regulation of Isolated Wetlands under the Migrato=
ry=20
Bird Rule and prepared an analysis for the Environmental and Safety Report.

TXOGA Pipeline Committee Meeting - Marc Phillips attended a TXOGA Pipeline=
=20
Committee meeting. He presented information on TNRCC's proposed changes to=
=20
the Permit by Rules and enforcement of upset and maintenance rules. The rul=
es=20
will impact ETS.

Environmental and Safety Leg/Reg Report - The RTA Group issued a draft of t=
he=20
Reg/Leg Report for review by management and legal staff.

California NSR Permitting Legislation - Marc Phillips distributed an update=
=20
on the status of legislation to expedite New Source Review permits for powe=
r=20
generation in California.

Solar Turbines - Marc Phillips met with Solar Turbine personnel to discuss=
=20
problems with permitting and maintenance of Solar turbines.

Reciprocating Engine and Turbine MACT Regulations - Marc Phillips discussed=
=20
the proposed Reciprocating Engine and Turbine MACT Regulations with EPA=20
personnel. It should be determined by the end of March whether or not the=
=20
regulations will be moving forward or will be redone by the new=20
Administration. The regulations could impact all operating units with=20
reciprocating engines and turbines.

National Risk Assessment For Selected HazMat in Transportation - Russell=20
Tucker was requested by ETS to become involved in the risk assessment sturd=
y=20
about to be released by RSPA. =20

HM - 126 Hazardous Materials Review - At the request of ETS, Russell Tucker=
=20
completed a review of all DOT final rules of the last 3 years to determine =
if=20
there were any changes that needed to be made to the HM - 126 Hazardous=20
Materials training course conducted each 3 years in ETS.=20

GREENFIELD CAPITAL PROJECTS
A meeting in Santa Cruz, Bolivia with Shell, Transredes, and Enron=20
representatives will be held the week of March 12 to discuss the "lessons=
=20
learned" findings.

Bahama LNG and Pipeline -Joe Kolb reports that he, Lauren Iannarone, Habiba=
=20
Bayi, and Catherine McKalip-Thompson met this week with Alice Weekly and Da=
ve=20
Glessner (project developers). Dave Glessner is handling the Bahama end an=
d=20
Alice Weekly the Florida end. After a project description was given, sever=
al=20
suggestions were given. The pipeline will cross the land of a private=20
university and go underneath a state recreation area. Each person left wit=
h=20
assignments as part of developing a strategy to identify and address=20
environmental and social issues.

Transredes Looping (Bolivia) - Joe Kolb has nothing new to report. Joe=20
Kolb, Susan Worthen, and Lauren Iannarone met to discuss the best way to=20
ensure that environmental and social concerns are addressed. This meeting=
=20
was held in response to concerns raised by Henry Van and Edgar Zuleta.

ACQUISITIONS

Military Base Privatization (MacDill AFB) =01) Don Stevens provided an=20
Environmental Baseline Study proposal to Charlie Thompson for inclusion in=
=20
the RFP.

Massey (JV Coal Mine) - Susan Worthen received confirmation from Bill=20
Giuliani (originator) that negotiations with Massey have slowed and they ar=
e=20
uncertain if the transaction will proceed. Bill will notify Susan or Don=
=20
Stevens if any changes occur.

Project Ice (potential 100% acquisition of a private company with one ammon=
ia=20
and two propane facilities located in Florida, New Jersey and New=20
Hampshire). Don Stevens participated in a company overview meeting and dat=
a=20
room document review regarding the proposed transaction in New York on 2/5/=
01=20
=01) 2/7/01.

DEPARTMENT PROJECTS
Annual Report - EES and EFS safety data appears to be complete. A meetin=
g=20
is scheduled with Gene Humphrey for the week of the 20th to discuss inclusi=
on=20
of information from Investment Partners. Additional meetings will be=20
scheduled with Workplace Diversity and Community Relations.

Telework/NEPI Program Gavin will be attending a telework meeting at Judge=
=20
Ekcels office on Friday to talk with NEPI and HGAC representatives and to g=
et=20
a better idea of the free services that HGAC provides to setup a telework=
=20
program. HR is currently reviewing the idea.

Hybrid Vehicle Program - Bruce Martin, the fleet manager in Strategic=20
Sourcing, has taken the Prius for a test drive. He liked how it performed a=
nd=20
said he plans on purchasing a few for Enron=01,s fleet. Gavin will be worki=
ng=20
with Bruce to determine how we can best manage and collect the emission=20
reduction credits off of these cars.=20

COMPETITIVE INTELLIGENCE

Power/Gas/Emissions Markets -- California Energy Crisis & Emissions=20
Regulation - Mary Schoen has been working out of the San Francisco office,=
=20
providing analysis and develop strategy on the environmental components of=
=20
the many bills that are being introduced in the California legislature to f=
ix=20
the energy crisis. Enron's primary strategy is to drive the permitting=20
process and air requirements to a more standardized, centralized format and=
=20
to allow generators to pay into a pollution mitigation fund in lieu of=20
purchasing/creating air quality offsets. Stacey Bolton informed EES of=20
opportunities in legislation that could allow energy efficiency projects to=
=20
qualify as early reduction credits to meet air quality regulations. All ES=
G=20
members continue to provide business units with information and updates on =
a=20
daily basis regarding potential legislative/regulatory changes that could=
=20
affect key Enron markets in California.

Power Generation -- EES Locomotive project - Mary Schoen provided guidance=
=20
along with Gus Eghneim, on the air quality and permitting issues surroundin=
g=20
EES's locomotive project. Worked with consultants to produce a matrix of=
=20
the state-by-state requirements and analysis of a potential loophole in the=
=20
rules which may allow these engines to permitted as mobile sources and avoi=
d=20
stringent requirements.

Power Quality/Distributed Generation - Mary Schoen provided intelligence t=
o=20
EES's Premium Power Group on permitting and siting fuel cells in CA and TX.

Power Generation/Origination - Mary Schoen is providing intelligence to 2 n=
ew=20
commercial groups -- a power origination group looking at new coal generati=
on=20
and the industrial group looking at converting industrial customers to=20
merchant generators.

ADVOCACY COORDINATION AND BUSINESS SUPPORT

Clean Air Act -- Federal Multi-pollutant Legislation - Jeff participated i=
n=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

Energy Efficiency/Air Quality - air quality regulatory requirements, which=
=20
would benefit EES.
Indiana NOx SIP: Mary Schoen scored a major victory in Indiana's NOx SIP,=
=20
where regulators included Enron's suggestion for a 2% set aside of NOx=20
allowances for energy efficiency/renewable energy projects.
"Negawatt" programs: Stacey Bolton worked with EES on comments suggesting=
=20
changes to the structure of the Negawatt program in Pennsylvania. Stacey i=
s=20
also promoting the Negawatt concept in Ohio. Stacey also is pursuing the=
=20
inclusion of energy efficiency credits such as Negawatts in California=20
legislation aimed at assisting the energy crisis.

Power Quality/Distributed Generation - provide support to the EES Premium=
=20
Power group as they develop and implement their business plan to provide=20
power quality and distributed generation services to customers in the=20
high-tech area. Stacey Bolton met with EES regarding a fuel cell=20
demonstration project in California, and developed strategies for assisting=
=20
them with state/federal funding. Stacey drafted an abstract for EES'=20
application for a CARB grant, which has the potential to provide EES with $=
1=20
million in funding. Mary Schoen attended a hearing at CARB focused on=20
certifying DG technologies and providing guidance to local permitters to=20
accelerate the permitting of DG. Jeff Keeler worked on coordinating=20
signatures of an industry letter (which EES signed) to DOE urging developme=
nt=20
of an FY 02 multi-million dollar funding mechanism at DOE to support R&D an=
d=20
commercial applications for power quality projects in the high-tech sector.=
=20

Renewable Energy - California Crisis and Retail Green Power markets - Stac=
ey=20
Bolton worked with EES regarding the regulatory implications for their gree=
n=20
customers in PG&E's territory which are being switched from a physical to=
=20
financial contract. Stacey helped coordinate with Harold Buchanan and his=
=20
sales representatives to inform customers Patagonia and Fetzer that EES wou=
ld=20
be supplying them with a green tag product rather than 100% (physical) gree=
n=20
power. Stacey worked with PR on a strategy to position our green tag=20
efforts as environmentally-friendly, and market oriented solutions to=20
California's crisis. Stacey spoke with both the CEC and Green-e to ensure=
=20
that EES' labeling and certification would not be affected, and informed of=
=20
the positive responses she received. Stacey also explored the possibility o=
f=20
getting customer credit money for a tag-only product.

Environmental Disclosure:
Ohio - Stacey met with Ohio PUC staff regarding environmental disclosure=20
programs and clarify EES' arrangement with First Energy, where First Energy=
=20
would file the actual label with customers. Stacey was also asked to sit o=
n=20
the Ohio Green-e advisory group to develop a standard for certification in=
=20
Ohio, where she is promoting market-oriented solutions. =20
California - Stacey reminded EES about upcoming reporting deadlines for th=
e=20
California CEC and Green-e (March 1) and routed the appropriate worksheets =
to=20
EES legal.

Pipeline Safety Legislation - Jeff Keeler provided support to government=20
affairs and ETS on advocacy efforts regarding pipeline safety legislation. =
=20
On February 8, the Senate quickly brought S. 235 (the McCain bill) to the=
=20
floor and passed it on a 98-0 vote. One amendment was adopted, offered by=
=20
Sen. Jon Corzine (D-NJ) to require integrity testing to be performed at lea=
st=20
every 5 years with three exceptions -- unavailability of equipment; other=
=20
appropriate technical means exist; or necessary supply may be interrupted. =
=20
Jeff provided political/strategic assistance based on last year's legislati=
ve=20
experience.