Things are not always as they seem based on further due diligence.
---------------------- Forwarded by Stanley Horton/Corp/Enron on 05/21/2001 12:56 PM ---------------------------
From:	Jerry D Martin/ENRON@enronXgate on 05/17/2001 05:31 PM
To:	Stanley Horton/Corp/Enron@Enron, Phil Lowry/OTS/Enron@ENRON
cc:	David Sztroin/GCO/Enron@ENRON, Jordan Hunter/ENRON@enronXgate, Dan Cole/Remote/Eott@Eott 

Subject:	EOTT Hunt Pipeline Update

Stan & Phil - a quick update on the status of our activities on EOTT's Hunt Pipeline this week.

o	On Monday, Jordan and David Sztroin drove as much of the pipeline as possible in preparation for Tuesday's meeting.
o	On Tuesday, Jordan, David and Dan Cole met with representatives from Boots Smith Construction in Laurel, MS to discuss the project.  Discussion centered around the pipe size (10" being the most likely), and what was included in the lump sum construction price from Boots Smith.
o	His price did not include a number of items, such as concrete coating, stream crossings, wetlands installation (including mats), directional drills, silt fencing, and several other identified items.  He has provided, or will provide, unit prices for some of these items; we will estimate the balance.  In addition, his price is for construction now, and could change if construction is delayed too long - how long is not defined.
o	He stated he was not interested in a total "wrap" turnkey project.  He works closely with an engineering company, but did not feel comfortable doing the entire project, including surveying, ROW, engineering, permitting, procurement, etc.  His price is only for normal construction.
o	On Wednesday, Jordan, David, Dan and I held a conference call.  I assured Dan that we would, as always, be diligent in trying to minimize cost and schedule while maintaining appropriate safety, quality and environmental parameters.

I have assigned Jordan as the Project Director for the project.  He is working to more clearly define the scope, standards, specifications, execution approach, cost and schedule.  We will advise the target schedule and revised cost estimate as soon as possible.  Of course, there are many permitting and environmental issues to overcome, and Jordan is working through those now; the survey needs to start ASAP in order to file for the permits.

Dan, if you have comments on my notes, or on the meeting, please let us know.  We're looking forward to working with you.

Thanks,
Jerry