Subject: Weekly Report
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Fri, 29 Sep 2000 08:13:00 -0700 (PDT)

EHS Dept. General / Projects:
Life Cycle Impact Analysis - A.D. Little met with environmental, legal, and 
corporate responsibility representatives from ETS, EBS, EES, and Corporate to 
kick-off the first phase of a Life Cycle Impact Analysis of Enron's products 
and services.  Gavin Dillingham is working with Susan Worthen to determine 
all of Enron's products and services, including volumes. This information 
will be used to prioritize which products and services we examine and the 
scope of their life cycle.
EHS Compliance Manager Modules - Susan Worthen authorized the expenditure for 
an EHS Software consultant to assist in the identification and evaluation of 
EHS software system providers.  Enron's requirements will be identified 
through one-on-one meetings with internal stakeholders.  The value of using a 
third-party to facilitate this process will save significant staff time and 
project delays due to the current workload of the task force.
New Employee Orientation - Kelly Kimberly gave her okay on the graphic for 
the orientation booth.  Mark Wilson (Orientation) will finalize the panel and 
confirm availability so that EHS can man the booth and provide materials for 
new employees.
Corporate Responsibility Video - Mike Terraso and Kelly Kimberly identified 
six key business unit executives to feature in an elevator "commercial" 
promoting corporate responsibility vision and values.  Lauren Goldblatt and 
Susan Worthen will meet with Mark Wilson to discuss details.
Annual Report - Hard copies of the annual report are expected by Monday, 
October 2 from the Image Center.  Mike Terraso and Kelly Kimberly will 
distribute to an internal group of business executives and senior management 
with a cover letter.  Other copies will be delivered to Kelly, Mike, Jeff 
Keeler, London PR, and John Hardy for distribution to select groups.
e-Speak - Kelly Kimberly and Mike Terraso were featured on e-Speak to discuss 
Corporate Responsibility.
NARUC Environmental & Energy conference- in response to an invitation from 
NARUC through Sue Landwehr, Mike Terraso made a presentation on future 
natural gas resources and the environmental benefits in electricity 
generation.  He also discussed the energy efficiency , potential  programs 
for  emission credit incentives for energy outsourcing.
Clean Air Award -- Enron was presented an "Energy Innovation and 
environmental achievement award" by industry peers at the "America's Clean 
Air Celebration" held in Washington, D.C. last week in conjunction with the 
World Fuels Conference.   Event co-chairs included former Senator George 
Mitchell, Canadian Prime Minister Brian Mulroney, and President George Bush 
(who in his remarks recognized Ken Lay's contribution).  Jeff Keeler 
delivered acceptance remarks on behalf of Ken Lay and Enron.
Climate Change -- Mary Schoen spoke at a Pew Center on Climate Change forum 
in New Orleans for state and local officials interested in climate issues, 
outlining Enron's role in providing market solutions to climate change 
problems.   Jeff participated in Business Council for Sustainable Energy 
strategy meetings to discuss a recent proposal forwarded to the UN by the 
United States that may have the effect of disadvantaging early development of 
gas and renewable energy projects.  Jeff will be coordinating with INGAA, 
NGSA and other gas and renewable companies to prepare analysis and response 
to the US delegation to COP6 in the Hague, upcoming in November.
Greenfield Capital Projects:
Venezuelan LNG - Joe Kolb was contacted by James McMillan (development 
engineer) seeking input to assist him as he responds to the Venezuelan 
environmental agency's questions on the EIA.  Their questions focus mainly on 
the nature of the waste that will be generated and how it will be disposed of.

Acquisitions:
Privatenel (Nicaragua) - Don Stevens has been informed that the group is 
reevaluating the numbers provided and a decision on the direction of the 
project is expected next week.
Project ISAGEN (Colombia) - The privatization was initially halted by the 
Colombian judicial system due to a lawsuit filed by the  Medellin local 
utility company (EPM).  As of 9/22/00, the sell off has been reinstated and 
the government will now allow EPM to enter a bid.  The Colombian government 
has qualified EPM, Enron, AEA, and Union Fenosa to bid for the project.  
Sandy Verma has informed me that the project is currently on hold.  The 
instructions are to get the due diligence completed so if it comes alive 
again we have all the work completed.
Project Crane (Quebec, Canada and Port Angeles, Washington) - Don Stevens met 
with Wayne Mays and Robert E. Anderson regarding additional environmental 
questions for AGRA Simons to respond to on the project.
Project INGA (California and Pennsylvania) - RTP Environmental has completed 
their site visits and have supplied preliminary environmental findings.  Don 
Stevens prepared a response for ENA on issues noted by RTP in their 
preliminary environmental findings.  A meeting with Dave DeLaney is scheduled 
for Thursday, September 28, 2000.
Project Dragon (Southeast Asia) - Don Stevens forwarded information as 
requested to Enron's Bangkok office regarding NOx emissions at the Changzhou, 
China facility.  The lender's engineers are currently reviewing the 
environmental due diligence.  Enron is still negotiating with the seller. The 
project may complete around early November.
Military Base Privatization (Texas AFB) - Don Stevens provided environmental 
base line scope of work per Charlie Thompson's request for Dyess AFB, 
Goodfellow AFB, Lackland AFB, Laughlin AFB, Randolph AFB, Sheppard AFB, 
Ellington Field ANGB, Fort Bliss, and NAS JRB Fort Worth.
CWT Thermo-Depolymerization -EES Bruce Stram has requested an environmental 
analysis of the technology. EE&CC  has completed a review of the processes 
involved and is satisfied with the technology.    Don Stevens will set up a 
meeting with  to discuss various environmental issues regarding the project.

Regulatory Technical Analysis

EES Meeting - The Regulatory Technical Analysis Team met with Roger Raney and 
John Nixon of EES to discuss the operations of EES and  the services that the 
RTA team can provide to EES.

ETS Environmental Procedures - Jim Peterson met with Sue Fernandez of ETS to 
discuss changes to the intranet version of the ETS Environmental Procedures.

Houston Non-Attainment Regulation Comments - Marc Phillips compiled and 
submitted Enron's comments to TNRCC regarding the Houston non-attainment 
regulations.

Greenhouse Gas Emission Credits - Marc Phillips is discussing the possible 
use of greenhouse gas emission credits as payment for the methane emission 
survey work Indaco performed at Bushton compressor station. If the deal can 
be completed, it will be presented in a talk by John Shafer at the EPA 
Natural Gas STAR conference in mid-October.

NFPA Proposed Code Revisions - Russell Tucker reviewed 368 currently proposed 
revisions to the NFPA codes and standards to identify those having impact on 
any Enron companies. This review was prompted by feedback from interviews 
conducted with the safety managers of Enron companies in which several 
indicated the NFPA and related building codes were important to their 
operations. Identified for further investigation were proposals on design 
changes for fire control water spray system net flow rates for bay area 
offshore platforms and changes to the Industrial Fire Brigade member 
qualifications to achieve job performance certification.
 Asset Operations

EPA Acid Rain Workshop - Gus Eghneim is attended an EPA workshop for acid 
rain designated representatives.  EPA  discussed the latest developments to 
the acid rain program and other implementation issues.

Stack Testing and CEMS Certification at Wheatland Power - Gus Eghneim 
submitted petitions to EPA to delay any stack testing until summer 2001.  The 
delay would save EES OEC and estimated $400,000 by allowing the plant to 
perform the test during routine operating times and not just for testing. The 
petitions are anticipated to go through the policy review committee by 
October 2, 2000.

State Inspection at New Albany Power - New Albany Power was inspected by the 
State of Mississippi on 9/22/00.  No issues were identified in the 
inspection.  

Safety Video Project Script - Scott Watson devised "rough draft" script for 
the New Hire Employee and Contractor Safety Video projects.

Gaza Palestine Power Plant - Scott Watson completed new Hire Safety/Health 
Training Outline as well as shipped training materials to Gaza.  This 
training is to be conducted on October 7th & 8th, 2000 at the Gaza facility.

Legislation

Pipeline Safety -- Legislative situation still remains active, with a strong 
possibility that the House will take up the Senate-passed legislation early 
next week.   In anticipation of resistence from some Democrats who are 
opposing the bill for purely political reasons, we have stepped up lobbying 
efforts with key Democratic constituencies and other interest groups who can 
provide support to the legislation (gas users, governors, steel industry, 
etc.).    Jeff will be speaking on this topic at the ETS management 
conference on Wednesday, October 4.

MTBE -- prospects for legislation this Congress are looking bleak.  The only 
possibility for legislation to move is to attach the Senate Environment 
Committee-passed bill to an appropriations bill, and many key congressional 
leaders are opposed to this strategy because of the controversy surrounding 
the legislation.   We are making sure that key advocates are armed with 
industry transition/conversion funding amendments in case a last-minute 
effort to attach an MTBE ban to some moving legislation is attempted.   

Intelligence/Strategies

Clean Air Act/New Source Review -- the EPA Environmental Appeals Board last 
Friday rejected an appeal by TVA of the EPA's enforcement lawsuits charging 
TVA with multiple NSR violations as a result of plant modifications.   Jeff 
Keeler provided EGM and ENA commercial groups with intelligence as to the 
likely outcomes before and after the ruling, and provided information 
regarding TVA's appeal to a Federal District Court upcoming in November 2000.

Clean Air Act/New Source Review -- Jeff Keeler provided analysis to ENA Gas 
Storage developers working on a project involving Intermountain Power 
Authority in Delta, UT.   ENA is proposing installation of technologies that 
would use gas to increase the utilization of existing 1600 MW coal unit, 
which could raise serious concerns about EPA scrutiny or enforcement of NSR 
regulations.  Jeff also provided ENA commercial and EHS staff with 
intelligence on EPA letters of inquiry (which usually precede NSR enforcement 
actions) sent to Pennsylvania non-utility coal plants, 3 of which ENA is 
considering acquiring.

Clean Air Act/NOx SIP Call -- Mary Schoen was successful in negotiating with 
TVA and Tennesee air regulators, reaching agreement that Enron's sources 
would receive an allocation of 500 tons of NOx per year (the levels that our 
facilities are currently permitted for).    Earlier proposals would have 
limited or completely prevented Enron from receiving NOx allowances.  Mary 
also testified before the Illinois Pollution Control Board on their SIP 
development, advocating fair allocation of allowances to new sources and 
market-based trading systems.    

Clean Air Act/California Air Pollution Offsets -- Mary Schoen held meetings 
with ENA West developers regarding the shortage of air pollution offsets 
(required by local air quality districts) needed to develop power projects.   
Jeff and Mary will be developing strategies for creating or obtaining offsets 
and working with California developers in the near future.

Environmental Product Strategy meeting -- Stacey Bolton continues to receive 
positive feedback from last week's meeting with commercial groups on 
opportunities related to green power/renewables.   Stacey is working on 
developing a comprehensive analysis of markets for renewable energy, 
incentive monies, and supply/demand issues so that we can identify potential 
opportunities for Enron businesses.   Also, in anticipation of EES' 
development of a power quality group, Mary and Stacey will also be working on 
analysis of opportunities for distributed generation and other power quality 
related markets.

Environmental Disclosure -- Stacey submitted comments to the Texas PUC on a 
credit-based accounting system for environmental disclosure and met with the 
PUC in support of Enron's positions.   Stacey is also developing a white 
paper on credit trading for use in Maryland as they develop rules for 
disclosure.