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Enron Mail |
Larry - I've received a copy of the compliance order. It assesses a penalty
of $15,000 per day for each day of violation (May 1996 to September 8, 1997 or 496 days). This results in a fine of $7.44 million. I hope the order has a typo and the NMED meant a penalty of "up to" $15,000 per day of violation. If this is not a typo I see no downside to asking for a hearing and a settlement conference. We may do so anyway. Since we only have till mid-July to file the request for hearing which must include very specific admissions or denials and the basis of our affirmative defenses, I'd like Larry to flesh out the notes below and pull any relevant documentation together..... Dave - let's discuss counsel for this matter in the morning and I'd like to make a call to NMED counsel. I'd be tempted to bring Braddock in even though this is New Mexico... -----Original Message----- From: Nutt, David Sent: Wednesday, June 20, 2001 5:59 AM To: Soldano, Louis Subject: RE: Compliance Order, P-1 C/S Lou -- I spoke with Larry the other evening about this and will be more than happy to work on it until you resurface. I'm actually out of the office all next week while on vacation in Florida but I'll have a computer (email capable) with me so I'll be in touch. -----Original Message----- From: Soldano, Louis Sent: Tuesday, June 19, 2001 5:53 PM To: Nutt, David Subject: FW: Compliance Order, P-1 C/S dave - can you keep at it until the end of next week?? we have another mega deal we are tryig to close by then....thx -----Original Message----- From: Campbell, Larry [mailto:Larry.Campbell@ENRON.com] Sent: Tuesday, June 19, 2001 5:45 PM To: Shafer, John; Kendrick, William Cc: Jensen, Ruth; Phillips, Marc; Nutt, David; Soldano, Louis; Jolly, Rich Subject: Compliance Order, P-1 C/S Transwestern received a Compliance Order from the State of New Mexico, Air Quality Bureau, for an outstanding turbine replacement activity at the P-1 C/S which occurred in 1996. Transwestern had met with the AQB over this issue in 1996 and assumed that the issue had been resolved, as no further actions were received from the agency until this Compliance Order was received. The issue in question was Transwestern's replacement of interchangeable internal components from a 4700 turbine into the existing smaller turbine (3505). The larger internal components (inlet guide vanes/nozzles) which were placed into the 3505 were mechanically derated to simulate conditions of the smaller turbine. When Transwestern received permit approval from the AQB to operate at the larger turbine capacity, Transwestern made the upgrade adjustments and then operated at the higher turbine value 4700. The AQB did not understand that Transwestern could not make the adjustments to the inlet guide vanes as any such activity by Transwestern would void the warranty with Soalr Mfg. Only Solar is authorized to make adjustments to the turbine. This prevents Transwestern from randomly and arbitrarily manipulating and adjusting horsepowers of this turbine at their descretion. In the 1996 meeting with the AQB, Transwestern committed to conducting a emissions test of the 4700 to determine if emissions were more or less than the permitted values for the 3505. It was shown that emissions from the 4700 were less than that permitted by the AQB for the 3505. It should also be mentioned that the 3505 was a regerative turbine and the 4700 is a simple cycle. Apparently, EPA has mandated that the AQB act on all issues considered to be outstanding as determined by the EPA. Dave Nutt has been sent the Compliance Order to review. Under the conditions of the Order, Transwestern has 30 days to request another hearing. Id like to have a group discussion to decide how Transwestern will manage and handle this issue. Would someone contact Anabelle and have her set up a conference call for sometime next week?
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