Enron Mail

From:laura.glenn@enron.com
To:steven.kean@enron.com
Subject:EHS Weekly Report
Cc:maureen.mcvicker@enron.com
Bcc:maureen.mcvicker@enron.com
Date:Fri, 27 Oct 2000 02:58:00 -0700 (PDT)

GREENFIELD CAPITAL PROJECTS

Cuiaba Pipeline (Bolivia/Brazil)- Joe Kolb reports that construction in the=
=20
Ridges is now proceeding in all areas. Directional drilling of some of the=
=20
Ridges is progressing more slowly than originally anticipated due to the=20
hardness of the limestone. Specialists are being called in. Restoration o=
f=20
disturbed areas is being accomplished at a rapid pace in anticipation of th=
e=20
onset of the rainy season. Joe will be going to inspect the route along wi=
th=20
Edgar Zuleta (Corp EH&S South America) next week. =20

RioGen/Eletrobolt PPs (Brazil)- Joe Kolb is waiting for a pipeline=20
reroute-specific conference call to be scheduled (as per the last project=
=20
conference call) to discuss the issues. Joe conferred with Lauren Goldblat=
t=20
and John Ayers (Enron SA) and John is working to ensure that the conference=
=20
call is scheduled and to ensure that the school/orphanage is avoided. Bob=
=20
Moss will be presenting his route findings to Lauren, Joe, Susan W., John=
=20
Ayers, Lisa Alderman (Enron SA), and Keith Micelli on Friday, Oct. 26.

Metgas Pipeline (India) - Joe Kolb reports that the approval of the two=20
laterals from the Metgas mainline may delay the overall project. Lauren=20
Goldblatt offered wise counsel on alternative ways to obtain government=20
concurrence without having a full-blown public hearing. The goal is to clo=
se=20
financing by the end of March 2001. Main controversy is not related to=20
environmental matters but associated with ROW acquisition.

Powertel - Joe Kolb received considerable information from Annat Jain (Enro=
n=20
India) on this fiber optic project. It appears that it will have minimal=
=20
environmental impacts because the cable is being suspended aerially from th=
e=20
existing electric transmission towers and is being buried only at=20
substations. Impacts will mainly be from the equipment moving along the=20
corridor.=20

ACQUISITIONS

Project Crane (Quebec, Canada and Port Angeles, Washington) - Don Stevens h=
as=20
been informed that Enron did submit a non-binding bid for Quebec City. We=
=20
are currently in negotiations over the terms of our bid and there is at lea=
st=20
one other bidder still in the hunt. We won't make it to the next round=20
unless we can resolve the terms and conditions sticking points. No further=
=20
due diligence is planned at this time.

Project INGA (California and Pennsylvania) - Don Stevens reviewed DASH=20
(draft) from George Schaefer. Environmental issues have been addressed in=
=20
the DASH.

Military Base Privatization (Maxwell AFB/Gunter Annex) - Joe Kolb provided=
=20
direction to Stephan Laroche (Enron OEC) on how to develop information=20
requested for operating the wastewater systems. The information related to=
=20
tracking waste disposal.

CWT Thermo-Depolymerization - Don Stevens is preparing an environmental=20
issues matrix for the various feedstocks which may be used in the process.

Project Delta - Don Stevens has completed the review of Dames & Moore's=20
Preliminary Environmental Reviews of four potential underground natural gas=
=20
storage well locations. The proposed locations are in the states of=20
Washington, Utah and New Mexico.

Project Toucan - After meeting with Georgia Pacific management, Enron is=
=20
not interested in the Brunswich, GA site due to the product being=20
manufactured. Enron's offer would not be as competitive as others. Also,=
=20
Enron is not interested in the Woodland Mill as it appears that they have=
=20
operational issues. Enron will send a couple of engineers to the site for=
=20
review. Enron will only be bidding on the Leaf River, MS site. Given the=
=20
altered scope, no work is required in evaluating Brunswick. By November 1,=
=20
2000 Enron will decide whether to submit a bid for Woodland. Georgia Pacif=
ic=20
still requires that binding bids be submitted by mid-November and this date=
=20
will apply to both Leaf River and Woodland. The current schedule has the=
=20
management approval process beginning on November 9, 2000. Don Stevens=20
conducted a review of documents supplied by Georgia Pacific regarding the=
=20
Leaf River site. Don Stevens will be conducting a due diligence site visit=
=20
of the Leaf River facility on October 29 - 30, 2000.

DEPARTMENT PROJECTS

BMPs - Joe Kolb distributed all three linear facility BMPs to the Enron EH&=
S=20
Council for their review. All comments have been received and evaluated fo=
r=20
the Pipeline BMPs. Joe Kolb sent the Fiber Optic BMPs to Wilson Dietrich=
=20
(EBS) for his review and comments. The Electric Transmission Line BMPs were=
=20
sent to Bob Moss (EE&CC) for his review and who passed them on to Dennis=20
Alexander (EE&CC) for his staff to review. Initial responses are positive.

EHS Guidelines - The Environmental Sub-Committee (of the EHS Council) will=
=20
conduct a review of the Enron EHS Guidelines and lead the effort to revise=
=20
them to ensure that they have a broader scope to cover Enron's diverse asse=
t=20
portfolio (power, pipelines, pulp/paper mills, metal recycling, etc.). Thi=
s=20
effort will include the identification of EHS BMPs and will likely include=
=20
the construction BMPs Joe Kolb has been developing.

EHS Intranet Site - Gavin Dillingham continues to work on the EHS intranet=
=20
site. The target date for launch of the site is now December 1st. Most=20
content has been received for the site. We are also waiting on the approval=
=20
of the Renewable Portfolio Standard information from the Environmental=20
Strategies group and the Regulatory and Legislative Reports from Marc=20
Phillips. These two items should be approved by the end of the week.=20

Life Cycle Analysis Phase I - A.D. Little has completed their identificatio=
n=20
of Enron's products and services. A meeting will be held either Friday, Oc=
t.=20
26 or Monday, Oct. 30 to discuss follow-up questions with the business=20
units. =20

VOLUNTEER ACTIVITIES/COMMUNITY RELATIONS

Solar Panel Donation - Joe Kolb and Michael Terraso visited the Armand Bay=
ou=20
Nature Center last week, discuss their use of the panels, and have agreed t=
o=20
donate the panels. =20

Enron Earth Day Festival/Buffalo Bayou Challenge - Joe Kolb and Gavin=20
Dillingham have developed a proposal for how to implement a possible "Bayou=
=20
Challenge," which would be a bayou cleanup activity. A meeting with=20
Community Relations folks to discuss the proposal will occur on October=20
26th. The Corporate EHS group will participate in a trial run December 8th=
=20
to work out the kinks.

ADMINISTRATIVE

Safety Contract Person - Donnie Willmann made offer to contract safety pers=
on=20
to assist in old CALME region. Contractor has verbally accepted pending=20
review of contract. Should start within the next two weeks.

Environmental Award - On Oct. 21 Donnie Willmann accepted an Environmental=
=20
Award on behalf of Ken Lay and Enron for their efforts in promoting=20
environmental awareness and improving the environment in the Houston area. =
=20
The award was presented at an Environmental Forum 2000 at the George R. Bro=
wn=20
Convention Center. The award was presented by Carol Mims Galloway, City=20
Council Member, District B. Enron was the only company in Houston presented=
=20
with an Environmental award.=20

EUROPE, INDIA and ASIA
=20
Spain Arcos =01) Alan Stringer is preparing the Enron Europe Ltd. Construct=
ion=20
Health and Safety and Environmental Management Plan.

Regional Support Co-ordination Team-Europe =01) Alan Stringer made a=20
presentation to Enron Europe explaining the role of EHS Corp. in the Due=20
Diligence Process emphasizing environmental and social issues.

Enron Metals =01) Alan Stringer is preparing the integration of Enron EHS=
=20
guidelines for Enron Metals Europe. Bal Wong conducted an EHS inspection=
=20
of Henry Barth Singapore warehouse. Scott Watson scheduled to conduct EHS=
=20
inspection of Henry Barth USA warehouse in California. =20

Poland, Turkey, UK ETOL =01) Alan Stringer continues to work with plant =20
management in preparing procedures that meet Enron EHS Guidelines. =20

UK =01) Isle of Dogs New Project =01) Supporting Engineering Services in=20
preparation of EIA and IPPC permit application.

CALME

Puerto Rico, San Juan Gas - Donnie Willmann met with the Puerto Rico=20
Environmental Quality Board (EQB) to finalize the waste characterization pl=
an=20
for the Feasibility Study and Risk Assessment. EQB gave verbal approval fo=
r=20
the waste characterization plan. Characterization will begin Nov. 13. =20

Panama, San Francisco Site - Bill Curra is currently assisting the=20
remediation work. =20

Panama, Bahia Las Minas (BLM) Power Plant - Bill Curra continues to suppor=
t=20
remediation activities at BLM Plant. No problems have been incurred. =20
Project is anticipated to be finalized by Nov. 10. Gus Eghneim is reviewin=
g=20
proposals for the emission testing work. Selection of contractor will be=
=20
done Oct. 27. He is also assisting in developing the cleanup work plan for=
=20
hydrocarbon contaminated unlined detention basin.=20

SOUTH AMERICA

Bolivia, GasOriente Boliviano Ltda. - Edgar Zuleta participated in the Owne=
rs=20
Audit and the Emergency Action Plan audit and the Mechanical Completion=20
task-force The EAP will also apply to the pre-operational activities.

OEC / NORTH AMERICA

2001 Safety Action Plan - Scott Watson competed the OEC Facilities 2001=
=20
Safety Action Plan. The Plan will be presented to Mark Dobler (OEC) and h=
is=20
staff for approval and implementation at all OEC facilities. =20

Medical Surveillance & Wellness Program - Scott Watson received protocol=20
material from Mary Ann Roman De Meza. He is currently preparing the Medic=
al=20
Surveillance & Wellness Procedure.

Caledonia & New Albany Plant Facilities - Scott Watson conducted EH&S Audit=
s=20
at New Albany and Caledonia Plants on Oct 24 - 27.=20

Wheatlant Plant, CEMS Standard Operating Procedures - Ramiro Garcia complet=
ed=20
the CEMS Standard Operating Procedures (SOP) and Emergency Response Plan=20
(ERP) for Wheatland Plant. SOP and ERP were submitted to the state on=20
October 23. Also submitted the Quarterly Compliance Monitoring/Deviations=
=20
Report to the state on October 24.=20

2000 Peakers, Due Diligence =01) Gus Eghneim is preparing responses to=20
questions received from potential buyers of the 2000 Peakers. Responses wi=
ll=20
be submitted to Enron legal department.

REGULATORY TECHNICAL ANALYSIS

INGAA NSR Task Group - Marc Phillips is heading a newly formed INGAA Task=
=20
Group on New Source Review. The first conference call for the group is=20
scheduled for this Friday.

EPA Regulatory Activities - Marc Phillips distributed to Enron personnel a=
=20
listing of 88 actions, mostly regulatory, that EPA plans on taking between=
=20
now and January 20, 2001. Fourteen of the actions were identified as having=
=20
an impact on Enron. This information was presented at the EH&S Council=20
meeting.

TNRCC Commissioners Work Session - Marc Phillips attended the TNRCC=20
Commissioner's Work Session where the Commission directed TNRCC staff to li=
ft=20
the temporary hold on the review of certain New Source Review (NSR) permit=
=20
applications. This hold had affected applications for new permits and permi=
t=20
amendments received after September 18, 2000, which would authorize new=20
emissions of NOx in the eight-county Houston/Galveston ozone non-attainment=
=20
area.

Office and Field Ergonomics Safety Procedures - Russell Tucker issued the=
=20
second draft of the proposed "Enron Office Ergonomics Program" safety=20
procedure and the first draft of the "Enron Field Ergonomics Program -=20
Construction" safety procedure for review and comment by the members of the=
=20
Enron EH&S Council.

Enron Houston Accident and Injury Reporting, Investigation and Recordkeepin=
g=20
- Russell Tucker assembled the final three forms necessary to complete the=
=20
attachments to the "Enron Houston Accident and Injury Reporting,=20
Investigation and Recordkeeping" procedure commissioned by the Enron EH&S=
=20
Safety Sub-council for development. The procedure is awaiting review by=20
Maryann Roman De Meza, after which it will be released for review and comme=
nt=20
by the Safety Sub-council members.

ADVOCACY

Pipeline Safety Legislation - While there is still a slim chance that the=
=20
Senate (McCain) legislation may be included in a last-minute appropriations=
=20
package, most Capitol Hill sources are pessimistic that a bill will be pass=
ed=20
this Congress. The Administration, concerned that it could shoulder the bla=
me=20
for killing safety legislation in Congress, is planning an "Executive=20
Action," which will likely take the form of a Clinton Executive Order, pair=
ed=20
with the release of a DOT rule on integrity management for liquid pipelines=
=20
(which was expected shortly anyway.)

MTBE Legislation -- S. 2962, which passed the Senate Environment Committee =
in=20
September is not expected to be included in any last-minute appropriations=
=20
legislation. The issue will likely be addressed next Congress. Enron has=
=20
secured commitments of several key members of Congress that "transition=20
incentives" for MTBE producers will be considered along with any legislatio=
n=20
to ban or limit the product.

Clean Air Act/"Multi-Pollutant" Legislation -- it is likely that next=20
Congress will consider CAA reform legislation, and much attention is alread=
y=20
being paid to approaches to reducing emissions of multiple pollutants (SO2,=
=20
NOx, Mercury, CO2) from the electric generation sector while also fixing=20
problems with the New Source Review program. Out of concern that merchant=
=20
gas generation, distributed generation, energy efficiency and other "clean"=
=20
solutions might be left out of the discussions, Jeff Keeler and consultant=
=20
Joel Bluestein organized a meeting of environmental groups and competitive=
=20
generation companies (PG&E Gen, Calpine, Trigen, NiSource, El Paso) to talk=
=20
about the inclusion of clean energy/IPPs in a multi-pollutant bill. We wi=
ll=20
be drafting a legislative solution in the coming weeks so that it can be=20
circulated with environmental groups, utilities, and eventually Capitol Hil=
l=20
and new Administration representatives by the start of next Congress.

COMPETITIVE INTELLIGENCE/COMMERCIAL SUPPORT

Clean Air Act/NOx SIP Call Supreme Court Appeal - The states of Ohio,=20
Indiana, Alabama, Michigan, South Carolina, West Virginia and Virginia have=
=20
petitioned the U.S. Supreme Court to hear an appeal of the NOx SIP call cas=
e,=20
which was upheld in favor of EPA by a federal appeals court earlier this=20
year. The states (backed by some industry groups) are hoping that the cas=
e=20
will be linked in the minds of the justices to the EPA's appeal of the NAAQ=
S=20
8-hour standard case, which will be heard by the Supreme Court on November =
6.=20
(even though one case held for EPA and the other against) If the Court=20
decides the two cases are related this could delay a decision until later=
=20
next year, and perhaps sway the court into finding against EPA in the SIP=
=20
case as well.

Clean Air Act/Energy Efficiency - Mary Schoen is working on several issues=
=20
related to the use of energy efficiency projects to generate tradable=20
allowances/offsets in NOx control programs. Indiana is developing its NOx=
=20
SIP, and because of the excess of allowances in its budget, would be a prim=
e=20
target for including energy efficiency set-asides. EES is interested in=20
creating such a program, and Mary is working with EES and some of its India=
na=20
customers to advocate the use of energy efficiency projects to meet NOx=20
reduction targets. Mary is also working in California to find offsets for=
=20
ENA new generation, and has talked with the Bay Area AQMD about using EES=
=20
energy efficiency projects to generate offsets. Stacey Bolton met with the=
=20
Center for Resource Solutions, who is developing a "Negawatt" program in PA=
,=20
and informed EES who could benefit from participation with commercial=20
customers in a pilot program.

EES Premium Power Group - The Environmental Strategies team has been workin=
g=20
with EES' new venture into power quality, distributed generation and=20
reliability to assist them with intelligence about environmental drivers fo=
r=20
their business. Jeff Keeler introduced EES to DOE and EPA officials workin=
g=20
on power quality issues, as potential sources of information, policy suppor=
t=20
and funding. Mary Schoen is working on a "template" environmental=20
regulations affecting distributed generation. Mary is also working to=20
address a new Texas regulatory proposal that would severely restrict=20
distributed generation. Stacey Bolton provided a summary of incentive moni=
es=20
available for fuel cells and renewable resources. We expect to provide=
=20
substantial support for this EES business as they organize in the next=20
several months.

California Retail Electric Market - New Power Company is taking over EES'=
=20
residential customers in the California retail market, and Stacey Bolton is=
=20
working with NPC to advise them on regulations and reporting procedures=20
related to the provision of green power products to customers. Stacey is=
=20
also advising NPC on markets in Ohio, New Jersey and Pennsylvania.

Energy Efficiency/California Pilot Project - SDG&E is looking to create a=
=20
pilot project to offer competitive energy providers the chance to take over=
=20
some of its residential customers and offer a "bundled" package of energy &=
=20
services, including many energy efficiency solutions. Mary Schoen is=20
working with NPC on potential business opportunities related to this pilot=
=20
program.

Green-E Outreach to Commercial Customers - Green-E is doing some outreach =
to=20
commercial sources about certification under the Green-E program, and Stace=
y=20
Bolton has been meeting with Green-E to discuss potential business=20
opportunities for Enron associated with green power offerings to these=20
commercial customers.

Climate Change - Jeff Keeler spoke on a panel at the Forbes Magazine=20
Environmental Superconference in DC, on the topic of Business Opportunities=
=20
related to Climate Change. Jeff also helped organize a briefing by the=20
White House and EPA for gas industry representatives, to hear about proposa=
ls=20
related to establishing baselines to show "additionally" under the CDM and =
JI=20
mechanisms, which will be a hot topic for discussion at COP 6 in the Hague.