-----Original Message----- 
From: Bill C. Scott 
Sent: Tue 8/28/2001 5:14 PM 
To: lsoldano@enron.com; Melton, Richard 
Cc: Shafer, John; Jensen, Ruth 
Subject: NMED Compliance Order



** Proprietary **

Lou,

I attach a draft of a chronology of events concerning the P-1 compressor station matter.

I have tried to keep the chronology as short as possible.  I have not included in this draft the dates that Transwestern applied for and received two modifications to the permit for the P-1. Transwestern applied for the first modification on July 26, 1996 to convert the P-1 from a regenerative cycle to a simple cycle and to include a 126 HP stand by generator.  That permit modification was issued on February 21, 1997.  Transwestern applied for the second modification on January 6, 1997.  That application sought an increase in the horsepower of the facility from 2500 to approximately 3700 horsepower.  NMED issued that amendment on September 8, 1997. 

On the one hand , the fact that NMED issued the modifications is good for us because it shows that Transwestern properly and timely applied for modifications when it understood such action to be required and because it arguably shows that NMED did not see the May 1996 issue as being significant enough to prevent their issuing modifications to that permit.  Including all of that material in the chronology, however, may 'muddy the waters" and may make the chronology less powerful.  Let me know if you think we should include those events.

I look forward to your comments on this.
  

William C. Scott
Modrall, Sperling, Roehl, Harris & Sisk PA
P.O. Box 2168
Albuquerque, New Mexico 87103
Phone: 505.848.1824
Fax: 505.848-9710
E-mail: wcs@modrall.com



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