Enron Mail

From:laura.glenn@enron.com
To:steven.kean@enron.com
Subject:EHS Weekly Report - Week ending 6/15/01
Cc:maureen.mcvicker@enron.com
Bcc:maureen.mcvicker@enron.com
Date:Fri, 15 Jun 2001 05:56:00 -0700 (PDT)

GENERAL

FCBC - Mike Terraso attended the donors meeting of the Foundation of=20
Conservation for the Chiquitano Forest in Miami. The FCBC executive direct=
or=20
reviewed the considerable progress in gaining confidence of many of the=20
indigenous groups, the Bolivain Ministry of Natural Resources and other=20
government agencies.
=20
Greenpeace - Mike Terraso was contacted by a Greenpeace International=20
representative in an attempt to clarify Enron's position regarding the Kyot=
o=20
protocal. Mike pointed out that Enron was no longer a member of the US=20
Council for International Business, which was the focus of the Greenpeace=
=20
reposnse to Enron's position. The conversation was cordial and Mike=20
explained Enron's position supporting a multilateral emissions reduction=20
agreement requiring some participation by developing nations.

EUROPE

ENS Poland - Alan Stringer supported management on potential warranty claim=
s=20
and provide assistance on gap analysis between Enron Guidelines and ENS EHS=
=20
policies.

UK, Project McCook - Alan Stringer working with UK EEOS team to provide=20
environmental advice for potential =01&tolling=018 agreement. Provided up-=
date to=20
Susan.

ENRON GLOBAL ASSETS
(Central America, South America, India and Asia)

Jamaica, IGL, Operations Audit - Ken Lovejoy assisted the IGL staff with th=
e=20
action items from the operational audit conducted on the Ferry and Spanish=
=20
Town Road locations. Many of the action items have been addressed with=20
procedures and guidelines being put into place that will allow the items to=
=20
be closed.=20

Argentina, TGS Visit - Henry Van and Edgar Zuleta conducted presentations =
on=20
Enron EH&S organization and workshop on EH&S management optimization. Also=
=20
visited eight TGS facilities.=20
=20
Guam, Marianas Energy Company Power Plant (MEC) - Bal Wong led a desktop=
=20
exercise regarding personnel injury, heavy rain and flooding, and earthquak=
e=20
emergency response procedures with Operations Department Groups A and D. T=
he=20
exercise resulted into four major recommendations that would improve the=20
existing plan.

ENRON INDUSTRIAL MARKETS

ARKANSAS, HUNTCO Steel - Following closing on the Huntco deal on June 8,=20
2001, Gus Eghneim is working with the transition team to ensure proper=20
transfer of permits to Enron.

ENRON ENERGY SERVICES

EES - Distributed Power Generation =01) Gus Eghneim is working with the New=
=20
Mexico Environment Department currently evaluating the construction permit=
=20
application for the proposed Gallup Compressor station power facility. An=
=20
administrative completeness letter is anticipated by end of this week.

EES - New Business Venture - Gus Eghneim is providing environmental strateg=
y=20
support for an EES business deals in Las Vegas New York,Dallas, Boston and=
=20
Kansas City.=20

REGULATORY TECHNICAL ANALYSIS

INGAA EH&S Meeting - Marc Phillips attended an INGAA EH&S meeting and=20
provided an update to the group on the New Source Review Work Group=20
activities.=20

TXOGA Legislative Meeting - Marc Phillips attended a TXOGA legislative=20
meeting and provided an update to the group on the activities of the TXOGA=
=20
Pipeline Committee.

Hazardous Waste Identification Rulemaking - Jim Peterson is reviewing the=
=20
revisions to the Hazardous Waste Identification Rule for implications for=
=20
Enron.

Recordkeeping Final Rule Negotiations - Russell Tucker working within the N=
AM=20
task force has completed the talking points document for entering into the=
=20
first negotiation meeting with OSHA on 6/15/01.=20

COMPETITIVE INTELLIGENCE & BUSINESS OPPORTUNITIES

East Power Desk - Stacey Bolton met with a new trader on the East Power Des=
k=20
and offered to provide competitive intelligence on environmental issues th=
at=20
could affect the power curves.

GHG - Lisa Jacobson solicited comments from commercial groups on voluntary=
=20
emission trading initiatives including the Chicago Climate Exchange, a=20
voluntary CO2 international trading pilot program with several Mid-Western=
=20
states and Brazil.

NOx Trading - Lisa analyzed NOx emissions trading initiatives in Canada fo=
r=20
Enron Government Affairs,

Renewable Desk - Stacey Bolton is working with Elliot Mainzer on an=20
opportunity to expand the City of Chicago deal, and provided Elliot with EE=
S=20
lead originator contact as well as the wholesale procurer for ComEd. ComEd=
=20
has a large renewable delivery obligation in their contract with the city o=
f=20
Chicago.

ADVOCACY & COMMERCIAL SUPPORT

Air Quality - Offsets/ERCs - Mary Schoen met with West Developers and CA=
=20
Gov't Affairs to develop near and longer-term strategies for advocating=20
changes to relevant environmental regulations at the state and Federal=20
levels. Mary and Stacey are working with the EES Emission Risk Group to=
=20
create/apply for NOx offset/set-asides from EES' energy efficiency project.

Global Climate Change - Lisa Jacobson reported to several corporate and=20
commercial groups( EES, EWS, EGM, Enron Wind and Enron Europe) on the Bush=
=20
Administration's evolving climate change proposal, continuing to keep=20
corporate and commercial groups updated on political and policy issues=20
related to emissions trading and the Kyoto Protocol. =20

ACQUISITIONS

McCook Tolling Agreement - Don Stevens and Susan Worthen received a copy o=
f=20
an Enron Metals Europe draft tolling agreement and property lease. An=20
overall project description/strategy has not been provided. Our preliminar=
y=20
understanding of the agreement is that Enron is pursueing a contract to=20
supply alumina to 2 -3 smelters located in Washington State and the Chicago=
=20
area with market access to self-generated power. The deal would likely be=
=20
signed with a 60 day period reserved for conducting due diligence post=20
closing and subject to agreement of environmental indemnification. The=20
aluminum smelters are currently shut-down. =20

York CoGen Facility - 70 MW combined cycle natural gas fired cogeneration=
=20
facility located in York, Pennsylvania. Solar Turbines, Inc. (STI), wholly=
=20
owned by Catepillar, Inc. which is located next door and has shut down=20
operations, owns the facility. Enron would enter into a LLC with Fenton &=
=20
Bowles. Don Stevens conducted a site visit on June 6 - 7, 2001. Potential=
=20
issues observed during the site visit include water discharge permit issues=
=20
and the observance of numerous monitoring wells located on the adjacent=20
15-acre site.=20

Andex Resources - Don Stevens reviewed the environmental inspection report=
=20
done by Environmental Disaster Control, Inc. regarding O&G properties locat=
ed=20
in Mississippi, Texas and Wyoming. These properties are associated with a=
=20
request from Andex for Enron to enter into another VPP deal with them. The=
=20
environmental consultant did not follow the scope of work that Enron EHS=20
provided. There does not appear to be any action plans or planned follow-u=
p=20
to recommendations or data gaps.=20

KCS Medallion Resources, Inc. (KCS) - Enron is considering a second VPP=20
arrangement with KCS in which KCS would acquire O & G properties (6 shallow=
=20
wells and 14 deep wells) owned by Union Gas Operating Company and located =
in=20
Dewitt, Goliad and Victoria Counties, Texas. KCS retained Kane Environment=
al=20
Engineering, Inc. to conduct a Phase I Environmental Site Assessment report=
.=20
Don Stevens reviewd the Kane environmental report and participated in a=20
conference call with Teresa Bushman (internal counsel, Enron Credit=20
Resources), Arville Martin (ECR commercial), and Marshall Eubanks (ECR=20
Commercial) to discuss the report. The report included recommendation=20
regarding SPCC Plans, SARA Tittle III, and Title V permitting (regarding=20
dyhyds); however, there is no planned follow-up or action items with KCS.


DEPARTMENT PROJECTS

Quantitative Risk Module - Don Stevens continues to evaluate the draft=20
software program. ThermoRetec is scheduled to conduct training on the=20
software June 21 - 22, 2001 and beta testing should follow in July.

EHS Annual Report =01) Gavin Dillingham is working with Susan Worthen in=20
compiling EHS performance charts for the annual report. GHG emissions data=
=20
continues to roll in and missing data/assets were provided to Henry Van. =
=20
Susan received comments from Kelly Kimberly and is working to reconcile=20
comments with the original authors and verify information. Susan expects t=
o=20
review the final draft report, including performance charts, with MFT next=
=20
week.