Subject: RE: Construction Expedition Letter
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Tue, 27 Nov 2001 06:18:51 -0800 (PST)

Chris,

Why are they removing language that let's us "..confer with Gulf's project management...and subcontractors..."?  What's to hide?  Remember, lack of such information is what led us to this 11th hour problem to begin with.....reference the information I passed along yesterday.  These folks do not appear to be familiar with what it takes to manage a fast track project.  They don't monitor subcontractors performance on a real-time basis and/or in great enough detail to understand what is really going on and in order to AVOID problems -- rather than find creative ways to manage them. It's a black box mentality to construction management, and it's risky.  As I recall, their attorney said something like "We mange things differently than you might, and that's just the way it is.  Sorry if you (Enron) don't like our style." While he was referring to right-of-way acquisition at that moment, I can assure you that their project managers (Howell, Sims, Powell) have the same attitude.  We need to audit construction progress in detail, because they will not.

Why don't they want to show us expediting costs?  We're still liable for all incremental costs if someone other than Gulf gets supply jurisdiction, right.  Seems to me we're still protecting our interests, which haven't been protected very well to date.  (See above!)  How can we not be concerned with our exposure to (potential) incremental costs?  If we think it is highly unlikely that anyone other than Gulf will prevail in the jurisdictional dispute, then maybe we could agree to this.  In any case, without detailed cost tracking we are creating an "incremental cost time bomb".  The only question is whether the regulatory / legal processes will set it off. (Pardon the insensitive analogy.)  

We need access to the information (as requested) in order to protected our interests, regardless of who is paying to get this project back on track.  If we can only get one of the items I listed, it needs to be direct access to the subcontractors.  We may not know the costs, but we will at least able to make sure construction progress is acceptable, and have a feel for construction-related risks.  If we need to give up something to get the agreement signed, give up interaction with Gulf Power project team and/or all Gulf Power project reporting.  It is very difficult to get a meeting or conference with them anyway.  Their project tracking and reporting are practically non-existent, and have no substantial value -- otherwise we wouldn't be in our current predicament.  
 
Not sure if this constitutes comments or a short speech, but I hope it helps!
 
Dave

-----Original Message-----
From: Hilgert, Chris 
Sent: Tuesday, November 27, 2001 5:38 AM
To: Owen, David
Subject: FW: Construction Expedition Letter

Dave,
 
Comments please.
 
Thanks,
Chris

-----Original Message----- 
From: Nemec, Gerald 
Sent: Mon 11/26/2001 5:24 PM 
To: [email-masked]' 
Cc: Hilgert, Chris 
Subject: FW: Construction Expedition Letter

Per our discussion, please review and provide comments asap. 

 -----Original Message----- 
From:   "Jeffrey Stone" <[email-masked]>@ENRON  
Sent:   Monday, November 26, 2001 4:51 PM 
To:     Nemec, Gerald 
Cc:     Hilgert, Chris; [email-masked] 
Subject:        Construction Expedition Letter 

Here are Gulf's proposed changes to match the concept discussed earlier this afternoon. 

-----Original Message----- 
From:   Nemec, Gerald [SMTP:[email-masked]] 
Sent:   Wednesday, November 21, 2001 10:38 AM 
To:     [email-masked]; Howell, Marion W. 
Cc:     Hilgert, Chris; Owen, David; Alexander, James C. 
Subject:        Construction Expedition Letter 

For your review is the draft Construction Expedition Letter per our 
discussions Monday. 

 <<GulfExpediteLetter2.doc>> 

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********************************************************************** << File: GulfExpediteLetter2.doc >> 
 - GulfExpediteLetter2.doc <<GulfExpediteLetter2.doc>>