Enron Mail

From:steven.kean@enron.com
To:stephen.burns@enron.com
Subject:Re: Fiber Optic Public Lands Right-of-Way Status
Cc:
Bcc:
Date:Sun, 24 Sep 2000 10:31:00 -0700 (PDT)

great news! Keep up the good work.



Stephen D Burns

To: Steven J Kean/NA/Enron@Enron, Richard Shapiro/HOU/EES@EES, James D
Steffes/HOU/EES@EES
cc: Joe Hillings/Corp/Enron@ENRON, Scott Bolton/Enron Communications@Enron
Communications, Donald Lassere/Enron Communications@Enron Communications, Sue
Nord/NA/Enron@Enron, Cynthia Sandherr/Corp/Enron@ENRON, Chris
Long/Corp/Enron@ENRON
Subject: Fiber Optic Public Lands Right-of-Way Status

The fat lady hasn't quite sung yet, but I thought it would be a good idea to
give you a readout on the current status of the BLM/USFS fiber optic
right-of-way issue.

In a nutshell, our strategy seems to have worked and we've won all the
concessions we sought. As you'll recall these were:

a) to get the BLM to withdraw any "interim" policies, the first of which
split fiber cables into 144 different ROW certifications, and a later version
that re-packaged the issue, mandating that ROW certificates be issued each
time a fiber owner subleases or sells capacity on its line, with a
retroactivity clause that added extra sting;
b) to get the Forest Service to retract its May 2nd memorandum which changed
its fiber optic ROW policy from published fee schedules to individual
"comparable" assessments (the first such assessment, which compared ROW fees
in urban centers in downtown Portland and Seattle to Oregon forest lands,
increased the cost of a segment of our FTV fiber build 150 fold);
c) to block both agencies from implementing any proposed or final rule in FY
2001; and
d) to create an open rule making process that involves all interested
stakeholders, including Enron.

Thanks to the considerable pressure we orchestrated from Congress and the
Administration, BLM Director Fry and USFS Chief Dombeck have backed away from
points a and b above, and have agreed to points c and d. The language we
inserted in the Interior Appropriations Bill, which has been agreed to by the
Conferees, forces both agencies to revert back to the published fee
schedules, prevents them from implementing any new policies in FY 2001, and
forces them to work with industry and to come up with a common policy for
future rent determination.

The reference in the opening sentence to gravitationally-challenged women is
because the issue still hasn't quite closed. The Interior Appropriations
Bill may very well be vetoed. But since our issue was settled at the staff
level, and is now off the table, we're likely to remain safe from being
re-examined and challenged. In fact, any changes would likely only increase
the strength of our hand: some members of our coalition are trying to insert
even more detailed language in the report that prescribes exactly how the
agencies will proceed to determine the new rental fee schedules over the next
18 months. Through outside consultants, we've had a series of constructive
discussions with the agencies over the past two weeks that have forged
agreements on timing and specific ways forward. Details are forthcoming,
but Enron would be involved closely in the process. The agencies were
clearly surprised by the clout we wielded, and are now more than willing to
negotiate.

But the bottom line, again, is that we have stopped both agencies from
implementing their costly interim policies or launching a rule making process
either now (which they originally intended to do) or in the coming fiscal
year. And by engaging key Members of Congress and the White House, and
organizing and leading the 20-member Fiber Optic Public Land Right-of-Way
Coalition, we've succeeded in branding Enron as a leader in the
communications field.

Steve