Since you are in a helpful mood please look this over and give me your comments. 

 -----Original Message-----
From: 	Leach, Doug  
Sent:	Wednesday, August 22, 2001 10:12 AM
To:	Mahoney, Chris; Goughary, Jim; Loosley, David; De la roche, Marc
Cc:	Maffett, Randal; Nowlan Jr., John L.
Subject:	FW: Enron:   LA, Carteret, Pasadena, Tampa and Knoxville

As you know we are still waiting for feedback from Pilot so we can move forward on taking a long term lease with Kinder Morgan's GATX tankage. Regardless of Pilot what tankage in Los Angeles, Houston and NY/NJ do we want to look at leasing for our own use? 

Carteret, NJ--they have a 260,000 barrel diesel tank available in 11 months. They could build two new 150,000 barrel tanks which would be available in 12-18 months. Looking for $0.35-0.38 per barrel per month.

Pasadena, TX--they have one 150,000 barrel gasoline/diesel tank that could be available by the end of this year and another 150,000 barrel gasoline/diesel tank available in 10 months. They also would be willing to build up to three 150,000 barrel diesel tanks which would be available in 12-14 months. Looking for $0.35 per barrel per month.

Los Angeles, CA--willing to extend our existing storage and also willing to build two 150,000 barrel and one 80,000 barrel tanks which would be available in 18-36 months. Looking for $0.50 per barrel per month. 

The key is that they are willing to not only free up existing tanks asap and give us first option on those tanks, but are also  willing to build new tanks in conjunction with the existing tanks, or would build the new tanks without taking the existing tanks. The clock is ticking on both the existing and yet to be built tanks, as they have several other customers looking for term tankage. Please let me know what, if any, tanks and term you are interested in looking at asap. 

 -----Original Message-----
From: 	"Thompson, Bruce" <Bruce_Thompson@kindermorgan.com>@ENRON [mailto:IMCEANOTES-+22Thompson+2C+20Bruce+22+20+3CBruce+5FThompson+40kindermorgan+2Ecom+3E+40ENRON@ENRON.com] 
Sent:	Monday, August 13, 2001 1:05 PM
To:	Leach, Doug
Cc:	Lorenz, Packh; Varnado, Steve; Vattimo, Dave; Armstrong, Jeffrey
Subject:	Enron:   LA, Carteret, Pasadena, Tampa and Knoxville

8/13/01

Doug:

FYI on our discussions and status by location...

*	Carteret:  At this moment all petroleum tanks are committed. We are
still working on potentially available assets for Enron which might come
available prior to "new build tanks" being available. More information will
follow in the next 30 to 60 days.

*	Pasadena:  As already discussed last week; we may be able to have
one 150,000 barrel tank in 4 to 5 months and a second 150,000 barrel tank in
about 10 months, assuming Enron is willing to make a 5 to 10 year commitment
and take the tanks as they come available. The tanks initially used may need
to be swapped out for distillate only tanks 12 to 14 months from now, or at
a later date. Tanks are being offered on a subject to availability basis,
until a firm commitment is actually agreed to by both Enron and KMLT. Please
advise Enron status regarding committing at Pasadena as soon as you are able
to.

*	LA/Carson:  Spoke with Packh Lorenz of KMP on the West Coast. KMP's
Los Angeles area assets (the Carson/LAHT facilities) are fully committed for
the forseeable future. Enron has commingled jet space and a dedicated
150,000 Barrel tank at Carson that could alternatively handle gasoline. This
is not a drain dry tank, so switching product would involve some expense.
To alternatively switch to diesel fuel from jet fuel would require a capital
investment in the $75,000 range (ballpark).  Packh is going to be meeting in
LA with Mike Phillips of Enron very soon.  Suggestion: Enron's 150MB tank is
leased through June of next year. You may want to consider having Enron
extend the term of this tank Agreement to 5 years, and also have Mike talk
directly to Packh about the capital associated with the diesel fuel storage
alternative.  This extension might help Enron in the interim period, while
"new build tanks" are also being discussed. I reconfirmed with Packh that
new tanks are at least 2 to 3 years away.  New tank commitments are
currently being lined up on several building phases. Enron's requirements
need to be firmly established so they can be incorporated as part of one of
the tank building phases. Please advise me when you are able to.

*	Tampa:  Steve Varnado of KMP is working on a commingled diesel quote
for Enron in Tampa (versus segregated new build tanks).  The quote will
include receipts by vessel, commingled tank space and outbound rack access.
Can you provide approximate monthly throughput volumes for the diesel fuel
Enron would want to bring into KMP-Tampa? This will enable us to finish the
quotation and provide it to you.

*	Knoxville:  TransMontaigne (TMG) owns a delivery terminal in
Knoxville.  It is on the Tennessee River, and is referred to as East
Knoxville.  It is the only terminal on the Tennessee River, however, it's
also the only terminal without pipeline access.  A few years ago, Colonial
was connected to this terminal, but shutdown the line (rather than repair
it), so the terminal has been isolated from pipeline access.  KMP is
progressing on the pipeline expansion project to Knoxville.  If Enron, or
someone else, purchases the feeder pipeline to TMG from Colonial and
re-activates it, KMP could potentially make a connection to that facility.
Our pipeline expansion into Knoxville is tentatively scheduled to be
complete by mid-year 2003.  While Enron is evaluating the above information,
should KMP send you its package regarding "pipeline volume commitments in
exchange for incentives" that KMP is going to offer to shippers on
Plantation Pipeline at the end of this month?

I hope this update is useful, and we look forward to your feedback. I'll be
travelling Wed through Fri of this week, but will be in the office next
Monday (cell phone 713-206-9438).

Best regards,

Bruce