Subject: EHS Weekly Report - Week ending 8/17/01
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To: [email-masked]
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Date: Mon, 20 Aug 2001 08:06:35 -0700 (PDT)

SIGNIFICANT ISSUES

Keenansville, NC, ENA - Dan Williams (Tech Support, East Power) contacted Susan Worthen regarding environmental due diligence support for a 35 MW coal fired power plant in North Carolina.  The strategy is to purchase (100%) and immediately divest.  Don Stevens is preparing the Environmental Assessment Report based on his site visit last week.  No significant risks were identified.

Rassau Power Station - Joe Kolb recently received from Alan Stringer the March 2001 supplemental environmental report for this 1200 MW Combined Cycle gas turbine plant proposed for construction in Wales.  A major concern is that the plant site, while in an industrial park, is only 500 meters from the edge of a national park.  Joe is coordinating his review with Catherine McKalip-Thompson.

Record Keeping Retraining Program Issued - Russell Tucker completed a 3 part self-paced retraining program and distributed it to all Enron safety managers/directors for their use in retraining those responsible for keeping OSHA injury/illness records.

Renewable Energy Origination & Trading Opportunities - Stacy Bolton organized a meeting on August 16 with commercial and corporate and corporate groups to discuss origination and trading opportunities in the renewable power sector.  The meeting was coordinated with the ENA Renewable Power Desk in order to discuss the significant opportunities the could result from combining Enron's skills in the wholesale market, huge customer base at EES, and regulatory/strategic expertise with the increasing level of green power commitments in the public and private sectors.

Global Climate Change Impacts/Opportunities - Lisa Jacobson provided Enron Europe with analysis of commercial opportunities and impacts of the proposed rules to implement the Kyoto Protocol.  Specifically, commercial groups are interested in the rules for international emissions trading, project-based mechanisms, technology definitions under the Clean Development Mechanism and Joint Implementation in order to assess opportunities for GHG related businesses and impact to existing or future contracts.

Multipollutant Legislation and New Source Review - Jeff Keeler met with staff at the White House Council on Environmental Quality to discuss strategic options for the Administration and how our Clean Power Group legislative proposal can assist them substantively and politically in formulating their multipollutant and new source review plan.  

EUROPE

UK, Teesside EPOL - Alan Stringer attended Teesside site to provide support in the accident investigation and provided information to Houston.

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

Colombia, Promigas and Centragas Companies - Ops. Audit Action Items - Edgar Zuleta contacted Lewis May to discuss open audit action items and determine the needs to resolve these issues. Edgar will assist in the closure of these items. 
 
ACQUISITIONS, TOLLING AGREEMENTS, etc.
 
Project Nero, Industrial Markets - Susan Worthen provided a scope of work for a Phase I assessment and a list of potential EHS records to Ron Coker, Industrial Markets.  IM is considering the acquisition of pulp mills located in Sweden and Spain and has requested dd support from EHS Risk Assessment and Reporting.

UK, Enron Metals Project McCook Tolling Agreement - Susan Worthen is working with PGE on the environmental due diligence of an aluminum smelting facility and alumina storage facility in Longview, WA.  The financial situation of the proposed commercial partner has changed and the project is being re-evaluated in light of this change.  

Leaf River, MS, Industrial Markets - Eric Connor contacted Susan Worthen and Don Stevens regarding the potential acquisition of Georgia Pacific's ownership in the Leaf River mill near Mobile, AL.  

Project Splinter, EWS/EGM - Potential crack spread swap on a refinery.  Environmental risk potential regarding value of asset relative to potential environmental liabilities.  Don Stevens conducted a site visit on August 10, 2001.  Follow-up recommendations for the deal team is a complete review of the facility's current compliance status with air quality regulations and Process Safety Management requirements and an evaluation of the actions that the facility must take in order to implement proposed facility modifications on schedule.  The site does have existing contamination/clean-up that is being negotiated with EPA and the estimated cleanup cost remaining is $6 - $12 MM.

Project Fireball, EGM - EGM is looking at the potential acquisition ($700 MM) of two surface mines in the Powder River Basin by the end of August.  Marc Phillips completed an assessment of potential air quality regulatory impacts and Susan Worthen provided an evaluation of a Phase I report completed by a third-party.  Follow-up recommendations were made regarding the possibility of PCBs at one of the surface mines.  Susan is waiting for a copy of the reps and warranties that the seller is preparing.

Project Miracle, ENA - Divestiture of a 263 MW cogen facility located in Cleburne, TX.  Don Stevens conducted an environmental files review of the facility on August 15, 2001 in order to assist with the SPA rep's and warranties.

DEPARTMENT PROJECTS

Phase II EHS Web Site- Phase II was launched today. The ads for E-TV started today and will continue for the next couple of weeks advertising the site. Also, Gavin has informed several groups through email.

Biodiesel - Gavin Dillingham is continuing to work with Darren Maloney and the liquids group in developing a strategy for Enron to enter into the bio-fuels market. Darren has asked Gavin to work with him on determining opportunities on the biodiesel side. 

REGULATORY TECHNICAL ANALYSIS
Assistance to the Corp-Xcelerator Group - Russell Tucker responded to a request for regulatory clarification of the DOT's Hours of Service rules from the Enron Corp-Xcelerator group , a type of think tank group looking into a long haul trucking venture.
Methanol Plant NOx Allowances  Marc Phillips calculated the NOx emission allowances available to the plant under TNRCC's cap and trade program, and discussed the value of the allowances with an EGM emissions trader.