Kenny and Scott,

I agree with Ed's note concerning the need to move expeditiously in the
purchase of compensation acreage noted by the US Fish and Wildlife Service
(Service) in there approval letter.  This in indeed "good news" and EOTT
must move ahead to fulfill its obligation as per the MOU and Incidental
Take Permit.  By copy of this email, I am asking Larry Campbell to work
with both of you to assist in the proper fulfillment of EOTT's obligation
as promptly as possible.

It is also my understanding, from what research I have been able to do,
that EOTT does have approximately 14 to 15 acres of credit at the North
Coles Levee Preserve.  You should verify the exact credit number and
furnish the Service with such verification.  That is acreage EOTT will not
have to purchase in satisfying the obligation of the permit.

Keep me posted as you move forward on this issue.  John Shafer






Edward_Attanasio@eott.com on 02/20/2001 07:49:31 PM

To:   Kenny_Maltby@eott.com, Scott_Jones@eott.com
cc:   Matt_Hughes@eott.com, Bob_Jacobs@eott.com, Susan_Ralph@eott.com,
      Molly_Sample@eott.com, Larry_Campbell%Enron@EOTT.COM,
      Rich_Jolly%Enron@EOTT.COM, John_Shafer@Enron.com,
      Louis_Soldano%Enron@EOTT.COM

Subject:  Rogas Line -- USFW Approval


     Randi McCormick just forwarded to me a letter addressed to EOTT, dated
February 14, 2001  from the US Fish and Wildlife Service approving our
project "for participation in the Kern Water Bank Compensation Bank," and
authorizing the Water Bank "to extend their incidental take authority to
you and your entire project under their Master Permit."  This is, of
course, very good news.

     The letter notes, however, that we still need to purchase compensation
acreage both at North Coles Levee and at the Kern Water Bank.
Specifically, we must do the following:  (1) contact Cheryl Harding of Kern
Water Bank to acquire 23.1 acres of compensation credits, and to get
included in their Master Permit; and (2) get Cheryl Harding a letter from
the Coles Levee Ecosystem Preserve (Mark Poe of Aera) stating that we have
purchased 15.3 acres of credits for North Coles Levee, or that we have set
aside that amount from credits we have in the past purchased.

     While I could make these contacts, I do not believe that would be wise
because -- as Kenny can attest -- our past experience has been that
whenever a lawyer contacts the Water Bank, it prompts them to automatically
get their lawyers involved.  And our experience has been that this only
slows things down -- or worse.

     My suggestion therefore is that one or both of you gentlemen contact
Cheryl as soon as practical and ask her for (1) proposed contract for
acquisition of 23.1 acres of compensation credits and (2) perperwork to
include EOTT (and its contractors) in their Master Permit.  She should also
be informed that, while we have not yet purchased the 15.3 acres of NCL
credits, we will by the end of this week have a letter of credit posted as
security, as allowed under our State Take Permit, to cover this amount of
acreage.  Ask whether a copy of this LC will suffice for her purposes, or
whether we will need to have the actual acreage purchased.

     As this would remove a major impediment to construction of the new
lines, it is important that we move on this will all deliberate speed.
Please call me if you have any questions, or if you would like otherwise to
discuss how to approach this issue.  Thanks a lot.

                          --ETA