Message-ID: <23731557.1075849796112.JavaMail.evans@thyme> Date: Mon, 11 Dec 2000 02:31:00 -0800 (PST) From: rob.gay@enron.com To: laine.powell@enron.com Subject: Re: Telecom with S&W Cc: richard.lammers@enron.com, christiaan.huizer@enron.com, johannes.walzebuck@shell.com.br, peter.weidler@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: richard.lammers@enron.com, christiaan.huizer@enron.com, johannes.walzebuck@shell.com.br, peter.weidler@enron.com X-From: Rob G Gay X-To: Laine A Powell X-cc: Richard A Lammers, Christiaan Huizer, Johannes.Walzebuck@shell.com.br, Peter E Weidler X-bcc: X-Folder: \Randall_Gay_Nov2001\Notes Folders\All documents X-Origin: GAY-R X-FileName: rgay.nsf Thanks Laine, Yes it is very helpful. However, I think it is apparent that they have an increasing anxiety level on a variety of fronts which I am sure is being conveyed to the lenders and could significantly impact their willingness to fund. Did you get the same impresion Laine? Laine A Powell@ENRON_DEVELOPMENT 12/10/2000 04:22 PM To: Rob G Gay/NA/Enron@Enron, Richard A Lammers/SA/Enron@Enron cc: Christiaan Huizer/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Johannes.Walzebuck@shell.com.br, Peter E Weidler/NA/Enron@Enron Subject: Telecom with S&W Rob and Rick - Spoke today with Sue Garven and Brad Barta. Below find comments/notes - Brad mentioned his concern about turnover of O&M staff with Duane's departure. Responded that we had a capable plant manager with 10 years plant experience plus key people at the lower levels had remained. Also told Brad that the two I&C consultants we have had since the outset of the project are still working at the facility and that we were taking on 6 technicans from Siemens during combined cycle start-up. Brad seemed okay with the response. Discussed two key contractual issues - TAA - They expressed the importance of keeping the TAA in place with no dilution since it is so important to the lenders. Furthermore they mentioned that SCC's position is Siemens will come after us to dilute the TAA and that in fact it is no longer valid. (I agree Siemens will come after us for the risk profile modification) Responded that we felt that the TAA was still valid and mentioned that Siemens might want the TAA to commence at completion on oil. Sue's commented that we need to calculate how much it would cost us to keep the start date at Substantial Completion on fuel. Phase II - Explained that given the current commissioning program that we had no intention of lowering the dampners and testing for simple cycle Phase II on gas. They are on board with this concept. We just need to get a white paper to them to explain in detail. Drilling - The comment was the formations are tough but will get there slowly but surely. Using 1 May as gas available at the plant date. Change Orders - Transmitted SCCs frustration on little movement on change orders related to the pipeline. Told them that many of the change orders still without documents and in any case the strategy was to settle up at the end of the job. Brad and Sue mentioned that they would feel more comfortable with the process and putting a number on the value of the change orders if we were closer to resolution. worried about the size of the change orders - especially the outside case. have not given this to the banks there outside change order case is as follows - Power Plant Pipeline Total Total EPC US$ 419 mm Approved Change Orders 22 mm Pending Change Orders US$ 10 mm US$ 25 mm 35 mm Cont Change Orders 8 mm 24 mm 32 mm Hope this information is useful. rgds Laine