Message-ID: <11565809.1075840206919.JavaMail.evans@thyme> Date: Thu, 31 Aug 2000 11:57:00 -0700 (PDT) From: larry.izzo@enron.com Subject: Robert Hatchett Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Larry L Izzo X-To: Kenneth Lay@ENRON X-cc: X-bcc: X-Folder: \Kenneth_Lay_Dec2000\Notes Folders\All documents X-Origin: LAY-K X-FileName: klay.nsf Ken, at your request, my staff and I met with Robert Hatchett and his team. They offered Enron an opportunity to invest in a patented method of generating electricity by converting methane to hydrogen and burning hydrogen in a high efficiency turbine. This patent represents an idea, without any exhaustive quantitative analysis or research and without any prototype demonstrated in the field or a lab. We politely told Mr. Hatchett that we would review his proposal and get back to him. Subsequently, we conveyed to Mr. Hatchett that a) methane consumption rate for an integrated facility based on the subject patent is higher than the conventional plant efficiency b) the result in fuel cost is higher c) the overall Co2 emissions are probably higher d) there is no economical or technical justification to support an investment of Enron funds. We informed Bob Hatchett that we would recommend to Enron that Enron not invest in the development of this effort. While we invited Mr. Hatchett to respond back to us regarding our analysis, I see no further action required by us at this time. Please let me know if you want us to draft anything from you to Mr. Hatchett regarding this subject. LI39200