Message-ID: <16698485.1075842227109.JavaMail.evans@thyme> Date: Mon, 11 Dec 2000 05:44:00 -0800 (PST) From: francisco.leite@enron.com To: doug.leach@enron.com Subject: Re: Amendment to Fuel Supply Cc: dan.hyvl@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: dan.hyvl@enron.com X-From: Francisco Pinto Leite X-To: Doug Leach X-cc: Dan J Hyvl X-bcc: X-Folder: \Dan_Hyvl_Dec2000_June2001\Notes Folders\All documents X-Origin: HYVL-D X-FileName: dhyvl.nsf Doug: Thank you for your e-mail. I have no doubts you and your team did a great job and saved a lot of money to PQP and thus Enron. Like you we are also trying our best to cut a good deal for Enron. After talking to you and Dan last week I went back to the lenders trying to avoid the amendment to the fuel supply. It looks like they may agree to live without this document. If we can in fact convince the lenders I will not bother you and Dan again with this issue. Thank you for your help. FPL Doug Leach@ECT 12/11/2000 12:37 PM To: Francisco Pinto Leite/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Dan J Hyvl/HOU/ECT@ECT Subject: Re: Amendment to Fuel Supply I guess saving PQP LLC $14 million through the renegotiated fuel supply contract is not on the level of your highly complexed project financing mindset. To: Dan J Hyvl/HOU/ECT@ECT cc: Doug Leach/HOU/ECT@ECT, Ermes Melinchon/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Michael A Robison/HOU/ECT@ECT, Mariella Mahan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Daniel Castagnola/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: Amendment to Fuel Supply Thank you for your e-mail with the draft of the amendment to the fuel supply agreement. I disagree that the amendment has nothing to do with the 1996 letter. It is correct that the 1996 letter was superseded by the amended and restated fuel supply but the situation created by the 1996 letter was not contemplated in the amended and restated fuel supply. The lenders were not given a copy of the 1996 letter until recently and naturally asked to be in the same position created by the 1996 letter which was not contemplated in the amended and restated fuel supply. Notwithstanding the lenders strong case, I am still trying to argue this and many other issues and there is a slight possibility we may be able to convince the lenders they do not need this document. We will continue to do our best to protect Enron's interests (at all levels) in this highly complex and difficult financing. As always, constructive criticism and suggestions to improve our work are very much appreciated. I will keep you informed of further developments Thank you FPL Dan J Hyvl@ECT 12/07/2000 05:28 PM To: Doug Leach/HOU/ECT@ECT cc: Ermes Melinchon/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Francisco Pinto Leite/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Michael A Robison/HOU/ECT@ECT Subject: Re: Amendment to Fuel Supply Attached is the revised amendment quickly redrafted in an attempt to assist PQPC. The amendment has nothing to do with the 1996 letter which was totally superseded by the new fuel supply arrangements. It is strictly an accommodation to PQPC without the benefit of any consideration to EPOS. Doug Leach 12/05/2000 08:17 AM To: Francisco Pinto Leite/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Dan J Hyvl/HOU/ECT@ECT, Ermes Melinchon/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Michael A Robison/HOU/ECT@ECT Subject: Re: Amendment to Fuel Supply Why is this necessary when we just executed a reduced price fuel supply contract with PQP LLC and we are in the process of trying to sell the asset and transfer the fuel contract to the new buyer and Glencore? To: Doug Leach@ECT cc: Dan J Hyvl@ECT, Ermes Melinchon/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Amendment to Fuel Supply Doug: Following our conversation of last week, attached is the draft of the amendment to the fuel supply for your review and approval. As you may recall, this document became necessary after we became aware of the letter agreement dated August 12, 1996. If you have any questions, please give me a call, otherwise please let me know you are okay with it so that I can send it to the lenders for their review and approval. many thanks FPL