Subject: Alamac Steam Agreement
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Thu, 18 Jan 2001 02:58:00 -0800 (PST)

Based on the current draft of the O&M agreement, we do have the ability to 
(i) terminate each agreement for a one time fee of $200,000, or (ii) suspend 
all or a portion of the O&M services for a period of time and the parties 
would then meet to determine a mutually agreeable adjustment to the then 
current Operating Fee.  Let me know if you have any questions.

----- Forwarded by Gerald Nemec/HOU/ECT on 01/18/2001 10:26 AM -----

	Steve Van Hooser
	01/18/2001 09:00 AM
		 
		 To: Gerald Nemec
		 cc: 
		 Subject: Alamac Steam Agreement

Could you please answer Question #2 for RAC's Chip Schneider.  Let me know 
once you have talked to him.

Thanks,

Steve
----- Forwarded by Steve Van Hooser/HOU/ECT on 01/18/2001 09:00 AM -----

	Chip Schneider@ENRON
	01/18/2001 08:21 AM
		 
		 To: Steve Van Hooser/HOU/ECT@ECT, Glenn Wright/Corp/Enron@ENRON, Dwight 
Beach/HOU/ECT@ECT
		 cc: 
		 Subject: Alamac Steam Agreement

In considering the worst case scenario...

The Force Majeure provision seems reasonably broad in the Steam Purchase 
Agreement.  Would we be able to rely on this at some point to suspend our 
steam supply to AKF in the event, for unforseen reasons, we could not obtain 
an Interconnection Agreement or transmission capacity to transport power from 
Elizabethtown and Lumberton?
Also, if it were determined that we could not sell power from the sites, can 
we terminate or downsize the scope of the O&M Agreement?

Regards,