I received the proposed contract for both compensation credits and fees for 
EOTT and it's contractors to be put on Kern Water Banks Master Permit. 
Compensation credit will cost $62,000.00 with an additional $16,000.00 to add 
EOTT to the Master Permit so we are covered for incidental take at NCL. In 
order for the pipeline project to get started the following things must 
happen.

1. Give the Kern Water Bank a check for $78,000.00. A contractor constructing 
a water line adjacent to EOTT's ROW has cleared the habitat. This should 
reduce EOTT's disturbance acreage by a small amount, I suggest we go ahead an 
purchase the 24 acres so we can get started, if we have any credits left we 
can use them on the removal of the existing Rogas pipeline. 

2. We need to make a decision on weather we are going to purchase 15.3 acres 
of compensation credit from Area for NCL or try to use the existing credits 
we received with the purchase of the plant. I have tried to get in contact 
with Jeff Single at the Fish and Game to set up a meeting to work out details 
of managing the existing credits but have not been able to speak with him. I 
believe the process to enable us to use credits we already own will not be 
accomplished in time to use on this project. Scott Jones is working with Mark 
Poe at Area on what compensation credits from Area will cost. He originally 
was quoted $1,850.00 an acre to Area, $400.00 an acre endowment fee to the 
Fish and Game and $100.00 an acre for fencing to the Fish and Game. Scott 
talked with Gary Fuller and was informed that Mark had previously quoted 
$1500.00 an acre to Area. Scott asked Mark about the lower price, he is 
checking into it and will get back to Scott. Once we purchase the 
compensation credits from Area, Mark will need to notify Cheryl Harding at 
KWB and then she will sell EOTT the KWB compensation credits and add EOTT to 
the Master Permit. Since the Fish and Wildlife project approval letter stated 
she was to be notified of the purchase of credits form Area a letter of 
credit will not be acceptable. We also need to provide the letter of approval 
for the project from the Fish and Game to Mark Poe. It is my understanding we 
have only received verbal approval and have not gotten a hard copy. Randi 
McCormick is going to get the letter.

3. We need to provide insurance certificates to West Kern Water as stated in 
the encroachment permit before start of construction. Josie Castrejana is 
going to provide those.

4. We still do not have the permits for the road bores at State Hwy-43 and 
Interstate-5. The state has the permits ready but they want proof we have ROW 
with the land owners on either side of the highways. As soon as KWB gives 
back the signed recorded agreements I will provide that to Caltrans and then 
they will issue the permits. The other missing permit is for the crossing of 
the Kern River by-pass channel. Larry is working on that permit, we should 
have the permit by the time we reach the channel with the pipelines.



	Scott Jones
	02/26/2001 02:27 PM
		
		 To: Kenny Maltby/Bakersfield/Eott@Eott
		 cc: Bob Jacobs/Long_Beach/Eott@Eott, Edward Attanasio/Remote/Eott@Eott, 
John_Shafer@Enron.com, Larry Campbell/ET&S/Enron@Enron, Louis 
Soldano/ET&S/Enron@Enron, Matt Hughes/Houston/Eott@Eott, Molly 
Sample/Houston/Eott@Eott, Rich Jolly/ET&S/Enron@Enron, Susan 
Ralph/Houston/Eott@Eott
		 Subject: Re: Rogas Line -- USFW Approval

Kenny,
I will look in Gary's boxes and see if I can find anything. 
Thanks,
                Scott



	Kenny Maltby
	02/26/2001 12:55 PM
		
		 To: Edward Attanasio/Remote/Eott@Eott
		 cc: Bob Jacobs/Long_Beach/Eott@Eott, John_Shafer@Enron.com, Larry 
Campbell/ET&S/Enron@Enron, Louis Soldano/ET&S/Enron@Enron, Matt 
Hughes/Houston/Eott@Eott, Molly Sample/Houston/Eott@Eott, Rich 
Jolly/ET&S/Enron@Enron, Scott Jones/Bakersfield/Eott@Eott, Susan 
Ralph/Houston/Eott@Eott
		 Subject: Re: Rogas Line -- USFW Approval

I just spoke with Cheryl Harding about getting the proposed contract for 
compensation credits. The NCL credits are for habitat disturbance only not 
incidental take. KWB credits which include both are $2000.00 per acre. If we 
paid that fee we would be covered but we still would have to buy credits from 
NCL. The end result would be EOTT would have 15.3 acres of unused credit in 
KWB's bank. Cheryl would like to charge EOTT the difference between NCL 
credit  and KWB credits. If NCL credits are $1500.00 per acre we would own 
KWB $500.00 per acre for being covered under there Master Permit. Cheryl has 
a call into Mark Poe for this information and he has not returned her call. I 
spoke with Mark this morning about this issue, he said compensation credit 
prices had increased and was not sure what he quoted Gary. Mark will verify 
and get back to me. Scott if you can find anything in Gary's files about this 
that would be great.  



	Edward Attanasio
	02/26/2001 11:36 AM
		
		 To: Kenny Maltby/Bakersfield/Eott@Eott
		 cc: Bob Jacobs/Long_Beach/Eott@Eott, John_Shafer@Enron.com, Larry 
Campbell/ET&S/Enron@Enron, Louis Soldano/ET&S/Enron@Enron, Matt 
Hughes/Houston/Eott@Eott, Molly Sample/Houston/Eott@Eott, Rich 
Jolly/ET&S/Enron@Enron, Scott Jones/Bakersfield/Eott@Eott, Susan 
Ralph/Houston/Eott@Eott
		 Subject: Re: Rogas Line -- USFW Approval

 The only reason we are notifying KWB of the purchase of NCL credits is that 
the letter from USFW requires us to.

 I don't know what NCL credits are going for these days, but Rick Suderman 
might be able to give some insight.  (He was privy to some discussions with 
Aera about providing them power for the water system at NCL in exchange for a 
reduced price for credits.)  Check with him.

 I believe the insurance certificate is required by the encroachment permit, 
is it not?  When we first received that permit, I made the request of EOTT 
treasury for the certificate; but now that it is an ETS construction project, 
the thinking is that the certificate should come from ETS.  I do not know the 
ETS process for getting one.  Perhaps one of the CC-ed ETS folks can provide 
some insight as to whether ETS can take care of this, and how.

 Thanks.



	Kenny Maltby
	02/23/01 11:24 AM
		
		 To: Edward Attanasio/Remote/Eott@Eott
		 cc: Bob Jacobs/Long_Beach/Eott@Eott, John_Shafer@Enron.com, Larry 
Campbell/ET&S/Enron@Enron, Louis Soldano/ET&S/Enron@Enron, Matt 
Hughes/Houston/Eott@Eott, Molly Sample/Houston/Eott@Eott, Rich 
Jolly/ET&S/Enron@Enron, Scott Jones/Bakersfield/Eott@Eott, Susan 
Ralph/Houston/Eott@Eott
		 Subject: Re: Rogas Line -- USFW Approval

Cheryl Harding at KWB was reviewing the approval letter from the Fish and 
Wildlife Service yesterday and was not ready to provide the proposed contract 
for acquisition of compensation acres or agree that a letter of credit  would 
suffice for NCL credits. She did not understand why she needed to be notified 
of the credits being purchased from NCL. Unfortunately she is not in her 
office today.

I placed a call to Mark Poe to find out what compensation credits and 
administration fees cost are at NCL.
Do you know what they are Ed? This was something else Gary was doing. He has 
not returned my call.

Ed we still need to provide insurance certificates to West Kern Water 
District before we can start construction, can you help with that?





	Edward Attanasio
	02/20/2001 05:49 PM
		 
		 To: Kenny Maltby/Bakersfield/Eott@Eott, Scott Jones/Bakersfield/Eott@Eott
		 cc: Matt Hughes/Houston/Eott@Eott, Bob Jacobs/Long_Beach/Eott@Eott, Susan 
Ralph/Houston/Eott@Eott, Molly Sample/Houston/Eott@Eott, Larry 
Campbell/ET&S/Enron@Enron, Rich Jolly/ET&S/Enron@Enron, 
John_Shafer@Enron.com, Louis Soldano/ET&S/Enron@Enron
		 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