Didn't know orig was granted.  Will book today.  Thanks.

If you're available, I'd like to get together early this week to talk about whether we think there's value in going forward with develop efforts.

Mitch

 -----Original Message-----
From: 	Kitchen, Louise  
Sent:	Friday, July 06, 2001 3:45 PM
To:	Robinson, Mitch
Subject:	Re: Loretta Pricing

Did you book your one million granted orig from John - if not, please make sure you do quickly.
Thanks
Louise


From:	Mitch Robinson/ENRON@enronXgate on 07/02/2001 06:07 PM
To:	John J Lavorato/ENRON@enronXgate, Louise Kitchen/HOU/ECT@ECT
cc:	Kevin M Presto/ENRON@enronXgate, W David Duran/ENRON@enronXgate 

Subject:	Loretta Pricing

John and Louise -

Based on your meeting with Kevin and Dave earlier today, I understand you would like a breakdown of the expenditures expected to develop a Texas coal plant to the point that it can be monetized.

The below is my best estimate for developing the Brownsville site to get to the monetization point (permits in hand and EPC contract signed).  I expect to have both an EPC contract and permits in hand some time around Sep '02 if we start with the expenditures in mid July '01.  Expenditures will be incurred at the rate of approximately $350,000 per month for the next 12 months.  We can back out at any time with only prompt month plus one additional month committed.

Costs for a Florida site will be similar; however, expenditures will not start until we achieve site control.

My recommendation is to start fully developing the Brownsville, TX site with a plan to flip the site once we have a permit, as market conditions warrant.  I recommend holding off on significant expenditures in Florida until we get more comfortable with site control.

Mitch




		By 9/02	
		$000's	
Option for land lease		 $       33 	
EPC contractor preliminary engineering		 $     300 	
Owner's engineer		 $    1,200	
Permit Filing - Consultant, etc		 $     800	
Detailed Engineering		 $    1,400	
Fuel transport study/contract		 $     200 	
Geotech studies		 $     400 	
			
			
			
			
Total		 $   4,333