Message-ID: <30854477.1075846341279.JavaMail.evans@thyme> Date: Fri, 21 Jul 2000 06:20:00 -0700 (PDT) From: susan.worthen@enron.com Subject: Revised EHS Update for 07/21/00 Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Susan Worthen X-To: Steven J Kean@EES, Michael Terraso@ENRON X-cc: Maureen McVicker@EES X-bcc: X-Folder: \Steven_Kean_Dec2000_1\Notes Folders\Environmental issues X-Origin: KEAN-S X-FileName: skean.nsf 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.