---------------------- Forwarded by Mark Breese/HOU/ECT on 05/07/2001 12:55 PM ---------------------------
From:	David Fairley/ENRON@enronXgate on 05/07/2001 12:28 PM
To:	Mark Breese/HOU/ECT@ECT
cc:	Mathew Gimble/HOU/ECT@ECT 
Subject:	RE: Responses to your questions on fuel oil for Fort Pierce facility

Mark -- 

(1)  We can use the MHI turbine specs that we have now.  The turbine team will be telling everyone that final specs (on everything in the turbine contract) will not be final for a while, so you have to use what is available now.  In reality, not much will actually change.  Just use their current oil spec sheet.

(2)  We have the opportunity to sell more than 200,00 gallons now, but we need a price to work the extra deal.  

(3)  If extra time for filling is desired (as in a put), then let me know the parameters, and I will try to get it agreed to.  Starting to fill on time is important, but if we take some extra time to finish, that might be okay.

(4)  Regarding the comment about not wanting too many trucks lined up and causing traffic congestion, there is room in two spots near the plant to "stage" a series of trucks.  If this info would be useful, let me know.

 -----Original Message-----
From: 	Breese, Mark  
Sent:	Monday, May 07, 2001 11:37 AM
To:	Leach, Doug
Cc:	Gimble, Mathew; Fairley, David; Boyt, Eric; McMichael, Ed; Weldon, V Charles
Subject:	Responses to your questions on fuel oil for Fort Pierce facility



Following are responses to your questions on the truck deliveries to the H.D. King Power plant location (Fort Pierce).  We have answers to all questions except the quality specifications of the fuel oil.  We expect an answer on the quality specs tomorrow from our engineers (they are determining whether the air permit or the turbine requirements will be the primary driver of our quality specs).  We will forward them as soon as we receive these from the engineers.

How long will it take to get a notional price on filling the 200,000 gallon order?

Charlie and I will call later today to confirm your receipt of this email and to review any additional questions.  Please call me at x36751 or Charlie at x57229 with any questions.

Thanks

----------------------------------------------------------------------------------------------------------------------


1) Do the delivering trucks need to have their own pumps?   

	The delivering trucks will require pumps.

2) What size lines are the trucks pumping into? 3"?     

	The line is 3"


3) When connecting to our lines do the trucks need anything other than standard fittings?    

	Standard fittings may be used or 3 inch quick disconnect fittings.


4) Full spec sheet--especially sodium and potassium guarantees    

The environmental specs are known but the specs on the turbine itself from Mitsubishi (MHI) are not known.  We cannot determine the final specs unitl the MHI requirements are known.

5) After the initial tank fill delivery availability 24 hours/day and weekends?  

	Someone is always on duty at plant so deliveries can technically be made on a 24/7 basis.  The plant manager did say he would like to avoid a long line of trucks out the plant in order to maintain good relationships with the neighbors.


6) Tank fill and beyond--why not the full 1MM gallons?  

	At this point we are only replacing the 200,000 gallons of oil we had Fort Pierce burn in order to empty their old tank and allow us to clear that location for our plant.  Additional oil may be purchased later (next year) after development plans are further along.


7) Dyed/non dyed fuel issue--tax evaluating   

	The plant requires non-Dyed fuel.


8) Identify previous diesel supplier to the plant   

	Coastal was the previous supplier to the plant.


9) Design a fuel resupply plan including pre-purchase of fuel, call on transportation, buy diesel calls for expected outage periods

		Such a plan appears to be premature at this point but we will review the issues with you at a later date.

10) Buyer of record and credit issues with suppliers   

		Fort Pierce Utilities Authority is the buyer of record.

11) Tank fill price--fixed or floating? (Platt's, NYMEX, OPIS, rack price)  

		We are looking for a firm fixed price bid for filling the tank, unless you would recommend otherwise.

12) Commercial start date of plan     

		The tank will be finished and available for fill on 5/15/2001.

13) Any other issue to be discussed

		None that we are aware of.