fyi
---------------------- Forwarded by Kay Mann/Corp/Enron on 08/18/2000 08:52 
AM ---------------------------


"Duncan, Allyson" <aduncan@kilstock.com> on 08/17/2000 10:16:11 AM
To: "'Mann Kay'" <Kay.Mann@enron.com>, "'Keenan Jeffrey'" 
<Jeffrey.M.Keenan@enron.com>, "'Chapman Tom'" <tom.chapman@enron.com>
cc: "'Mellencamp Lisa'" <lisa.mellencamp@enron.com>, "'Kroll Heather'" 
<Heather.Kroll@enron.com>, "Fine, Jonathan" <JFine@kilstock.com>, "Grigg, 
Mary" <mgrigg@kilstock.com> 

Subject: FW: NCNG and Enron site

We had done a fair amount of research on the annexation issue which we have
suspended in light of the attached information recently received from Bill
Sherk and Steve Raper.  If NCNG concedes the right to serve, the only issue
is the tap.  That is an NCUC jurisdictional issue, and Bill is correct that
the Commission would have no sympathy if NCNG refused to work with Rocky
Mount on that point.  

-----Original Message-----
From: Grigg, Mary 
Sent: Thursday, August 17, 2000 10:26 AM
To: Duncan, Allyson; Fine, Jonathan
Subject: RE: NCNG and Enron site


Just spoke with Bill Sherk and he confirmed, almost verbatim, Steve Raper's
report.  According to Bill, George Baldwin, VP of Marketing, stated that
NCNG does not contest Rocky Mount's right to serve.  

I asked Bill to desride the location of the site---Bill says the site is
less than 2 miles from Rocky Mount's incorporated limits. Rocky Mount will
own the site (thus, meeting the requirement of getting all landowners to
sign a petition for satellite annexation).  The site is outside the area
described in the service agreement with NCNG.  

Bill said the remaining issue with NCNG is the necessary increased pressure.
Rob Shaw, NCNG, is checking with their operations to determine whether NCNG
can provide the necessary pressure.  Sherk's engineer states the NCNG "would
not have a leg to stand on" if they state they cannot provide adequate
pressure.  Rocky Mount would complain to the Commission and NCNG would "look
bad."  Rob Shaw is supposed to report back to Sherk today and he will let us
know NCNG's response immediately. 

Thanks 

-----Original Message-----
From: Duncan, Allyson 
Sent: Thursday, August 17, 2000 9:49 AM
To: Fine, Jonathan; Grigg, Mary
Subject: FW: ncng and enron site


Interesting...

-----Original Message-----
From: Raper, Stephen [mailto:RAPER@ci.rocky-mount.nc.us]
Sent: Thursday, August 17, 2000 8:58 AM
To: 'jep rose'
Cc: 'fred turnage'; 'joe durham'; Kivett, Craig; Nixon, Nancy M.;
'allyson duncan'; Sherk, Bill
Subject: ncng and enron site


bill sherk met w/ ncng officials yesterday.  they indicated they felt the
city would have the right to serve the site and hinted they would not
contest.  however, they said they "had to check with their operations
people" to determine if their pipeline and system at that location would
support/provide the needed pressure and volume for the enron plant.  this
may be the 'catch' we all expect.  however, atleast they appear not to be
readying themselves for a legal fight over service.  bill will advise enron
of these latest developments..