Kevin, I apologize for not getting back to you sooner as I have been out of 
touch for the last week.  I read John's message to you and agree with him 
that we should develop a formal plan to address how we will generate public 
support and address any future environmental concerns before they jump up and 
bite us.  As you may know, Flagstaff is one of those areas where there is 
much environmental support to keep the area as pristine as possible and there 
does exist a number of environmental groups which use this as their agenda to 
keep development to a minimum.  I will forward to you a memo from David 
Roensch, team advisor in the Flagstaff area, of an article he found providing 
the active participation of the environmental groups in the Flagstaff area.  
Ive done some cusory inquiries as to land status and have polled the Bureau 
of Land Management, State of Arizona,  State Historic Preservation Office and 
the Forest Service which is the major landowner between Flagstaff and 
Phoenix.  I have not heard back from all of agencies as yet, but will let you 
know if there are any glaring environmental concerns or if there  appears to 
be trouble on the horizon.   John and I have briefly traded thoughts on this 
project and we would  like to take a more proactive approach  "up front" with 
regard to public participation and input prior to breaking ground.  Its hard 
to deal with public issues when construction is underway. 

As for the $$$$$ for the environmental studies, you are correct in assuming 
that the existing portion of the project from Bloomfield to Flagstaff will 
require very little capital, as long as we limit and ensure our construction 
activities to the existing right of way.  Proceeding south from Flagstaff to 
Phoenix is where the initial expenditures will be the greatest.  Once the 
pipeline corridor is identified and staked, surveys will need to be completed 
for the following:   threatened and endangered plants and animals, archeology 
surveys for bones, artifacts, relics etc, noise surveys should this portion 
of the project require installation of horsepower.  The FERC will require an 
EIS (environmental impact statement) and environmental report to be 
conducted.  These activities include not only the environemntal issues but 
also things like socioeconomics, land use soils, geology etc.  Past 
consttruction projects has shown that third party involvement with this 
greatly expidites the process (John has eluded to this previously).  Due to 
the rough terrain and topography of the land south of Station 2 into Phoenix 
makes this project extremely hard to give an approximate dollar amount  for 
the environmental baseline surveys and permits to be completed as the entire 
proposed right of way (140 miles) from station 2 into Phoenix will need to be 
walked and surveyed by several people.  I would rather wait until we can 
identify on a map the corridor route and send out proposals for each of the 
surveys to be performed on the pipeline prior to giving a $$$$ figure.   
However, because you need something for a preliminary budget estimate, I 
would recommend an amount of $70,000 to 90,000  for the baseline 
environmental work and this might be a little light, in the event the surveys 
identify something.......please dont hold me too close to this number as it 
is a WAG contingent upon a number of variables that are relatively unclear at 
this time.  Having the pipeline corridor identified on a map will greatly 
assist in the environmental budgeting for this project.


From: Kevin Hyatt/ENRON@enronxgate on 07/25/2001 10:55 AM CDT
To: Larry Campbell/ET&S/Enron@ENRON
cc: John Shafer/ENRON@enronXgate, William Kendrick/ENRON@enronXgate 

Subject: Project Sun Devil EIS

I received the vmail from Bill last week basically stating there were no 
environmental deal killers for this new gas pipeline project, at least not 
from a 30,000 foot high level survey.  

My question is now what are our next steps?  I am building a work order 
authorization for some minimal dollars to get things like the ROW, EIS, etc. 
scoped out.  Assuming we have necessary market support, what would it cost to 
move to the next level on the EIS?  What do we get for our money?  I am 
mostly concerned about the "greenfield" portion of the line that would run 
from Flagstaff to Phoenix.  

Please call me at your earliest convenience to discuss an action plan.

thanks
Kevin Hyatt
713-853-5559