Subject: American National Power: Chambers Energy Limited Partnership; Harris County, Texas IPP
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked]
Date: Thu, 9 Nov 2000 07:12:00 -0800 (PST)

Steve,
I will hand deliver to your office an Interconnect Agreement which has been 
executed by Chambers Energy.   The Chambers Energy Project is the IPP to be 
built on the east side of the Houston Loop which has a peak load requirement 
for Phase I of 270 MMCFD and the parent company is American National Power.

The Interconnect costs will be paid by Chambers and the fixed price amount is 
stipulated in the Agreement.  The Interconnect is an independent agreement, 
however, it will become a part of the body of agreements that will be 
executed between ENA/HPL and Chambers for the plant.  As you are aware we 
have a construction proposal in front of Chambers to build laterals to this 
plant including the lateral to HPL.  Chambers has awarded the work to HPL and 
they are currently indicating that the construction contract would be 
executed by the end of this month.  

HPL will operate the interconnect.  The pipeline and meter are listed in the 
Interconnect Agreement as Chambers Facilities.  This is because the pipeline 
and meter station will be built and paid for by Chambers under the 
construction contract.  The intent is that, after construction,  Chambers 
will then turn over the facilities to HPL for operation and control as part 
of the transport and/or commodity deals.  We have agreed to execute the 
Interconnect Agreement because it will become part of the body of work needed 
by Chambers to finalize thier financing, i.e. "proof" of a supplier.

Let me know if you have any questions.

Thanks,
Greg