Subject: EHS Weekly Report - Week ending 6/15/01
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Date: Fri, 15 Jun 2001 05:56:00 -0700 (PDT)

GENERAL

FCBC - Mike Terraso attended the donors meeting of the Foundation of 
Conservation for the Chiquitano Forest in Miami.  The FCBC executive director 
reviewed the considerable progress in gaining confidence of many of the 
indigenous groups, the Bolivain Ministry of Natural Resources and other 
government agencies.
 
Greenpeace - Mike Terraso was contacted by a Greenpeace International 
representative in an attempt to clarify Enron's position regarding the Kyoto 
protocal. Mike pointed out that Enron was no longer a member of the US 
Council for International Business, which was the focus of the Greenpeace 
reposnse to Enron's position.  The conversation was cordial and Mike 
explained Enron's position supporting a multilateral emissions reduction 
agreement requiring some participation by developing nations.

EUROPE

ENS Poland - Alan Stringer supported management on potential warranty claims 
and provide assistance on gap analysis between Enron Guidelines and ENS EHS 
policies.

UK, Project McCook  - Alan Stringer working with UK EEOS team to provide 
environmental advice for potential &tolling8 agreement.  Provided up-date to 
Susan.

ENRON GLOBAL ASSETS
(Central America, South America, India and Asia)

Jamaica, IGL, Operations Audit - Ken Lovejoy assisted the IGL staff with the 
action items from the operational audit conducted on the Ferry and Spanish 
Town Road locations. Many of the action items have been addressed with 
procedures and guidelines being put into place that will allow the items to 
be closed. 

Argentina, TGS Visit - Henry Van and Edgar Zuleta  conducted presentations on 
Enron EH&S organization and workshop on EH&S management optimization.  Also 
visited eight  TGS facilities. 
 
Guam, Marianas Energy Company Power Plant (MEC)  - Bal Wong led a desktop 
exercise regarding personnel injury, heavy rain and flooding, and earthquake 
emergency response procedures with Operations Department Groups A and D.  The 
exercise resulted into four major recommendations that would improve the 
existing plan.

ENRON INDUSTRIAL MARKETS

ARKANSAS, HUNTCO Steel - Following closing on the Huntco deal on June 8, 
2001, Gus Eghneim is working with the transition team to ensure proper 
transfer of permits to Enron.

ENRON ENERGY SERVICES

EES - Distributed Power Generation ) Gus Eghneim is working with the New 
Mexico Environment Department currently evaluating the construction permit 
application for the proposed Gallup Compressor station power facility. An 
administrative completeness letter is anticipated by end of this week.

EES - New Business Venture - Gus Eghneim is providing environmental strategy 
support for an EES business deals in Las Vegas New York,Dallas, Boston and 
Kansas City. 

REGULATORY TECHNICAL ANALYSIS

INGAA EH&S Meeting - Marc Phillips attended an INGAA EH&S meeting and 
provided an update to the group on the New Source Review Work Group 
activities. 

TXOGA Legislative Meeting - Marc Phillips attended a TXOGA legislative 
meeting and provided an update to the group on the activities of the TXOGA 
Pipeline Committee.

Hazardous Waste Identification Rulemaking - Jim Peterson is reviewing the 
revisions to the Hazardous Waste Identification Rule for implications for 
Enron.

Recordkeeping Final Rule Negotiations - Russell Tucker working within the NAM 
task force has completed the talking points document for entering into the 
first negotiation meeting with OSHA on 6/15/01. 

COMPETITIVE INTELLIGENCE & BUSINESS OPPORTUNITIES

East Power Desk - Stacey Bolton met with a new trader on the East Power Desk 
and offered to  provide competitive intelligence on environmental issues that 
could affect the power curves.

GHG - Lisa Jacobson solicited comments from commercial groups on voluntary 
emission trading initiatives including the Chicago Climate Exchange, a 
voluntary CO2 international trading pilot program with several Mid-Western 
states and Brazil.

NOx Trading -  Lisa analyzed NOx emissions trading initiatives in Canada for 
Enron Government Affairs,

Renewable Desk - Stacey Bolton is working with Elliot Mainzer on an 
opportunity to expand the City of Chicago deal, and provided Elliot with EES 
lead originator contact as well as the wholesale procurer for ComEd.  ComEd 
has a large renewable delivery obligation in their contract with the city of 
Chicago.

ADVOCACY & COMMERCIAL SUPPORT

Air Quality - Offsets/ERCs -   Mary Schoen  met with West Developers and CA 
Gov't Affairs to develop near and longer-term strategies for advocating 
changes to relevant environmental regulations at the state and Federal 
levels.   Mary and Stacey are working with the EES Emission Risk Group to 
create/apply for NOx offset/set-asides from EES' energy efficiency project.

Global Climate Change - Lisa Jacobson reported to several corporate and 
commercial groups( EES, EWS, EGM, Enron Wind and Enron Europe) on the Bush 
Administration's evolving climate change proposal, continuing to keep 
corporate and commercial groups updated on political and policy issues 
related to emissions trading and the Kyoto Protocol.  

ACQUISITIONS

McCook Tolling Agreement -  Don Stevens and Susan Worthen received a copy of 
an Enron Metals Europe draft tolling agreement and property lease.  An 
overall project description/strategy has not been provided.  Our preliminary 
understanding of the agreement is that Enron is pursueing a contract to 
supply alumina to 2 -3 smelters located in Washington State and the Chicago 
area with market access to self-generated power.  The deal would likely be 
signed with a 60 day period reserved for conducting due diligence post 
closing and subject to agreement of environmental indemnification.  The 
aluminum smelters are currently shut-down.  

York CoGen Facility - 70 MW combined cycle natural gas fired cogeneration 
facility located in York, Pennsylvania.  Solar Turbines, Inc. (STI), wholly 
owned by Catepillar, Inc. which is located next door and has shut down 
operations, owns the facility.   Enron would enter into a LLC with Fenton & 
Bowles.  Don Stevens conducted a site visit on June 6 - 7, 2001.  Potential 
issues observed during the site visit include water discharge permit issues 
and the observance of numerous monitoring wells located on the adjacent 
15-acre site. 

Andex Resources - Don Stevens reviewed the environmental inspection report 
done by Environmental Disaster Control, Inc. regarding O&G properties located 
in Mississippi, Texas and Wyoming.  These properties are associated with a 
request from Andex for Enron to enter into another VPP deal with them.  The 
environmental consultant did not follow the scope of work that Enron EHS 
provided.  There does not appear to be any action plans or planned follow-up 
to recommendations or data gaps. 

KCS Medallion Resources, Inc. (KCS) -  Enron is considering a second VPP 
arrangement with KCS in which KCS would acquire O & G properties (6 shallow 
wells and 14 deep wells)  owned by Union Gas Operating Company and located in 
Dewitt, Goliad and Victoria Counties, Texas.  KCS retained Kane Environmental 
Engineering, Inc. to conduct a Phase I Environmental Site Assessment report. 
Don Stevens reviewd the Kane environmental report and participated in a 
conference call with Teresa Bushman (internal counsel, Enron Credit 
Resources), Arville Martin (ECR commercial), and Marshall Eubanks (ECR 
Commercial) to discuss the report.  The report included recommendation 
regarding SPCC Plans, SARA Tittle III, and Title V permitting (regarding 
dyhyds); however, there is no planned follow-up or action items with KCS.

DEPARTMENT PROJECTS

Quantitative Risk Module - Don Stevens continues to evaluate the draft 
software program.  ThermoRetec is scheduled to conduct training on the 
software June 21 - 22, 2001 and beta testing should follow in July.

EHS Annual Report ) Gavin Dillingham is working with Susan Worthen in 
compiling EHS performance charts for the annual report. GHG emissions data 
continues to roll in and missing data/assets were provided to Henry Van.  
Susan received comments from Kelly Kimberly and is working to reconcile 
comments with the original authors and verify information.  Susan expects to 
review the final draft report, including performance charts, with MFT next 
week.