Enron Mail

From:susan.worthen@enron.com
To:
Subject:Revised EHS Update for 07/21/00
Cc:
Bcc:
Date:Fri, 21 Jul 2000 06:20:00 -0700 (PDT)

SK - I've printed this out for you. mm

Transredes
The environmental and social impacts are currently being conducted.
According to Transredes, analytical results for the potable water
(transported by gasoline tanker trucks) were satisfactory. Cleanup efforts
continue.
Ventane
The TMR (Ventane transport company) driver and 3 of 5 occupants of the other
vehicle were killed in a vehicle accident on 07/18. The two remaining
passengers are in critical condition. Preliminary reports indicate that the
civilian vehicle ran a stop sign and the Ventane truck hit it.
EcoElectrica, Puerto Rico
The EPA meeting has been re-scheduled for August 1. Marc Phillips is helping
to make final revisions to the NOx modeling that indicates no "significant
impacts" to the environment. The second quarter excess emissions report was
submitted to Ernesto Blanco (Enron C ALME) and Pete Wilkens of Edison for
their final review today. It is due to EPA on July 28.
Dabhol, India
David Ronkainen and Henry Van met with Chris Haas (Thermoretec) and Steve
Schwarts (ENSR) to discuss findings regarding the area's geology. In
Thermoretec's meeting with DPC management, all parties agreed to
Thermoretec's installation of additional wells to better assess the
subsurface contamination and review of historical analytical data to develop
a proposal for remediation and the prevention of future impacts. The final
draft audit report has been distributed to concerned parties for comment.
MGplc Metals
Alan Stringer is working to identify the locations of metal storage
warehouses, etc. in order to conduct an EHS review. We have been unable to
determine if any environmental due diligence was conducted prior to the
acquisition.
Annual Report
Graphics Department is currently working on the layout and design. Frank
Smith is revising the Environmental Disclosure Statement. Jeff Keeler is
circulating a revised Climate Change Position statement. No word received
from Kelly Kimberly regarding the approval status of the Chairman's Statement
and Social Responsibility statement.
Quantitative Risk Analysis
Don Stevens and Susan Worthen met with Thermoretec to review preliminary
screens for the Quantitative Environmental Risk software currently being
developed.
ENEL, Nicaragua Due Diligence
The government was supposed to meet this week to determine the power
generation privatization schedule. Meantime, the commercial team is
re-evaluating to determine potential value. If project proceeds, due
diligence could occur between August 1 and end of September.
PEP, Panama Due Diligence
Enron is looking to exercise its option to purchase the PEP power plant,
located within the boundaries of the existing BLM facility. An environmental
due diligence was conducted approximately 2 weeks ago. Donnie Willmann is
meeting with Rene Van Horde (BLM Plant Manager) to discuss ambient air
quality impacts and needed modifications should we purchase the PEP
facility.

MTBE Legislation
Draft legislation has been released by the Senate Environment Committee that
would eliminate the fuel oxygen mandate and phase out MTBE (subject to
maintaining similar environmental benefits) and mandate use of "renewable
fuels" (to get the support of ethanol). We are working to have provisions
included for MTBE producers, most likely in the form of some kind of
incentives for converting to production of other additives. The only
possible date that the legislation could be marked up in the Senate
Environment Committee is next Wednesday, July 26 -- that is not very likely,
so consideration of the legislation may slip to September.
Pipeline Safety
There has been a great deal of activity in the Senate and House trying to
negotiate solutions that would allow the legislation to move forward this
year. In the Senate, the McCain legislation that passed out of the Senate
Commerce Committee must be fixed to industry's satisfaction in several ways
before Majority Leader Trent Lott will allow the bill to be taken up on the
Senate floor. In the House, we are working with House Transportation
Committee Democrats and Republicans on development of bi-partisan legislation
(which will be much less onerous than the Senate bill) that can be introduced
and quickly moved through the House. Action on both sides will likely take
place in September.
Clean Air (State Implementation Plans for NOx)
Tennessee: Originally, the state's SIP allocated sufficient allowances for
TVA and Enron generating facilities (Brownsville, Gleason peakers). The
state air regulatory agency has just advised us that they have re-drafted
their SIP and reduced the amount of allowances they will give Enron by 75%.
We will be working actively to have our allocation restored to workable
levels.
Illinois: Enron has organized a meeting of other IPPs next week in Chicago
to coordinate advocacy efforts on the Illinois SIP, in which the current
trend is to allocate allowances to existing generation and disadvantage
newer, cleaner generation.
Alberta Power Purchase
Jeff Keeler's group have been asked to provide detailed analysis of the
potential effects of environmental regulations on an ENA Canada power
purchase deal involving several older coal generation assets in Alberta. We
have provided regulatory information, and are assembling data on the possible
costs of emissions control options that could affect prices in the future
under several different regulatory scenarios.
California Reporting Error
We have been working closely to deal with an error in the data EES submitted
on their 1999 annual report to the California Energy Commission and the
Center for Resource Solutions (the agency that administers the Green-E
program). The error was related to reporting of a "green" product EES
offered to their large commercial/light industrial customers, offering 100%
renewable energy for the first 5,000 kwhs per month at no additional
charge. The error could put us in violation of requirements involving EES'
Annual Report to the CEC, Fuel Content Label and Green-E certification.
Information about the error is NOT known outside Enron, but we have advised
Peggy Mahoney of EES Public Relations. Stacey Bolton is coordinating on
this issue with EES legal and the California Government Affairs office.