Message-ID: <12343897.1075842754565.JavaMail.evans@thyme> Date: Thu, 18 Jan 2001 05:03:00 -0800 (PST) From: steve.hooser@enron.com To: cthompson@bracepatt.com Subject: Re: Alamac Steam Agreement Cc: gerald.nemec@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: gerald.nemec@enron.com X-From: Steve Van Hooser X-To: "Clark Thompson" @ENRON X-cc: Gerald Nemec X-bcc: X-Folder: \Gerald_Nemec_Dec2000_June2001_2\Notes Folders\All documents X-Origin: NEMEC-G X-FileName: gnemec.nsf Clark, We are covered on the O&M Agreement--Gerald Nemec has handled it. Thanks for the input on the Steam Agreement-I agree with it. Steve "Clark Thompson" 01/18/2001 11:36 AM To: cc: "David Locascio" , "Jay Sonnenberg" Subject: Re: Alamac Steam Agreement Steve: The definition is broad and a good one for us I believe. However, I do not think that the failure to get an interconnection agreement or have the ability to send power to the system would interfere with our ability to provide steam to Alamac. They are currently providing steam from the plant and not sending any power onto the system, so it would be a very hard case for us to establish a force majeure. It might be more expensive for us, but I do not believe this will get us there. As to the O& M Agreement, I have copied Dave Locascio, who is doing that agreement, and ask him to confirm my guess, but I doubt that we currently have the ability to cut back on it in its current form. If this is something you want to add, we can certainly do so as this agreement is not yet signed and will not be signed until we get to the closing, which will probably take a week to 10 days. For Dave's info, we are signing up the purchase agreements tomorrow, but stilll have some additional environmental testing to do before closing. Please let me know if you want to bring up the F/M issue up with Alamac or otherwise change the definition of force majeure. If so, we need to do it asap. cgt >>> 01/18/01 08:28AM >>> Please call me to discuss. Steve ----- Forwarded by Steve Van Hooser/HOU/ECT on 01/18/2001 08:28 AM ----- Chip Schneider@ENR To: Steve Van Hooser/HOU/ECT@ECT, Glenn Wright/Corp/Enron@ENRON, ON Dwight Beach/HOU/ECT@ECT cc: 01/18/2001 Subject: Alamac Steam Agreement 08:21 AM 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,