A perfected (or nearly perfected) ROW may have some merit, especially as ENA 
continues their negotiations to further develop that power plant in 
Albuquerque.  I'll have Jeff call ENA, and without giving anything away, find 
out how their negotiations are progressing.  I wonder to what extent Dennis' 
agreement with the tribe is transferable? 


   
	Enron Energy Services
	
	From:  Drew Fossum                           11/28/2000 09:31 AM
	

To: Steven Harris/ET&S/Enron@Enron, Kevin Hyatt/ET&S/Enron@Enron, Lorraine 
Lindberg/ET&S/Enron@ENRON
cc:  
Subject: Pueblo

Tino called this morning with a quick report.  They are still negotiating 
with DOE on a power plant deal, but it looks pretty shaky.  The size of the 
plant has grown to 380 MW, for reasons that are unclear to me.  Tino has been 
ordered to develop an exit strategy in case the power plant deal falls 
apart.  He says Dennis has about $3 mm in the project so far, most of it 
related to the pipeline right of way.  The have a binding 20 year agreement 
with the tribes for the ROW that calls for a $100,000 minimum monthly 
payment.  I'm not sure the entire route is perfected or not or whether the 
ROW agreement includes fiber optic rights etc.  The question is whether we 
are even interested enough to justify a closer look, since the rights Dennis 
has pulled together will probably be available for cents on the dollar.  I 
told Tino I'd give him a call next week to let him know.  At minimum, I'd 
suggest we have one of our ROW guys take a look at whatever they've got and 
advise us on what its worth.  Your thoughts?  DF