Gentlemen:

I would like to introduce into the contract the latest set of guidelines that 
we have agreed to with GE.  Those guidelines are currently for a power island 
type test at ARCOS, but they can easily be converted into a gas turbine only 
test.  Furthermore, the latest guidelines are much more precise, technically 
correct and reflect all of the agreements that GE and us have reached over 
the last year or so.  I understand that we do not want to go into a whole new 
set of reviews, etc, but I believe I can modify the ARCOS guidelines to 
address the testing of gas turbines (gas and oil) relatively quickly, get 
together with GE's performance engineer, go over the guidelines and have 
everybody agreeing rather rapidly.  We have a better document that what is 
currently in the contract for Blue Dog, why not use the better document?

Regards,

Tony




From: Brian D Barto on 03/16/2001 10:49 AM
To: jeffrey.darst@ps.ge.com@ENRON
cc: chasecl@pssch.ps.ge.com, Anthony 
Butler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Chris Booth/NA/Enron@Enron, Kay 
Mann/Corp/Enron@Enron, Scott Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, 
Roseann Engeldorf/Corp/Enron@ENRON 

Subject: RE: Change Order #3 to Add Dual Fuel to Unit #2 in BlueDog Contra ct 
with GE  

Jeff & Tony:  The agreement as I understand it is to develop the Performance 
Test Guidelines and Emissions Test Guidelines currently in the Contract, to 
include the infoormation, criteria and details for testing on liquid fuel 
too.  We should not change what exhist for natural gas, without full advance 
agreement by GE.  These guidelines will completely supersede Exhibits F and 
F-2 in the Contract so that people will only have to look in one place for 
them.  Tony and Jeff must get together to agree on the start point for 
updating the guidelines for liquid fuel.  Jeff suggested TECO because his 
internal review has already been performed on that contract.

Attached is my latest draft addressing the comments below.  I agree that we 
need to add the liquid fuel composition to Exhibit A-1, and Chris Booth 
informed me that the Site conditons will remain the same.  Then I am still 
waiting for Chris or Tony to tell me if any additional Basis Conditions are 
need (like water injection rate or minimum lilquid fuel pressure at ...) 
other than the liquid fuel composition.  

If Kay Mann and Rose Engeldorf (legal for ENA & E-Next) have anything that 
needs to be added, I'll let you know right away.

Please compare to the Rev 0a to see the changes 



	jeffrey.darst@ps.ge.com
	03/15/2001 12:41 PM
		 
		 To: Brian.D.Barto@enron.com
		 cc: chasecl@pssch.ps.ge.com
		 Subject: RE: Change Order #3 to Add Dual Fuel to Unit #2 in BlueDog Contra 
ct with GE


Brian,

The following are our comments to CO #3:

First page after title page; title and section 1 should refer to Change
Order No. 3 not No. 2.

In section 2, refer to Section 11.2 instead of 5.5.2.

2.3  In the second line, for clarity, I suggest we change the words "when
operated on liquid fuel set forth in Attachment 3" to read "when operated on
liquid fuel having the composition specified in Attachment 3".

2.3  The section refers to "Net Electrical Output" and "Net Heat Rate" and
"Emissions". The terms should be "Adjusted Electrical Output" and "Adjusted
Heat Rate" and "Adjusted Emissions" to be consistent with the terminology of
the base contract.

2.3  When corrected to basis conditions, will the methods described in
Exhibit F to the base contract for use in making corrections in the case of
natural gas apply equally to liquid fuel?  If not, appropriate changes to
Exhibit F should be made.

2.4  To the end of the sentence add the words "and shall be subject to the
mutual agreement of the parties."

2.5  Is your intent to expand Exhibit A to include the basis conditions for
liquid fuel?  Most of the conditions are the same.  The only changes would
be Fuel Composition (actually, Exhibit A-1 should be expanded to include the
Basis Liquid Fuel) and adding the Fuel LHV for liquid fuel.

2.6  To the end of the sentence add the words "and shall be subject to the
mutual agreement of the parties."

Attachment 1 prices the dual fuel adder at $1,455,000.  It should be
$1,445,000.


-----Original Message-----
From: Brian.D.Barto@enron.com [mailto:Brian.D.Barto@enron.com]
Sent: Wednesday, March 14, 2001 4:37 PM
To: Kay.Mann@enron.com; Anthony.Butler@enron.com; Darst, Jeffrey A (PS,
PPSD); Chris.Booth@enron.com; Scott.Dieball@enron.com;
Roseann.Engeldorf@enron.com
Subject: Change Order #3 to Add Dual Fuel to Unit #2 in BlueDog Contract
with GE


Chris, Tony, Jeff:

Here is the first, cut.  You can see that the Attachments need information.
I will insert the GEI liquid fuel specification since it is a PDF file.
Chris, Jeff gave you till Friday to provide the liquid fuel composition
without impact to production.  Please provide soonest.

Tony: I already sent you the contract so you can see what Basis Conditions
need to be added and what testing guidelines too.

Jeff:  What do you see is missing?

(See attached file: CO#3-R0a.doc)