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Enron Mail |
Lou-
I think the previous numbers are a bit low now. In December, 1999, we installed four downgradient monitor wells on off-site property owned by the Nature Conservancy. Samples from these wells confirm a contaminant plume of arsenic in the shallow groundwater emanating from the release area. Another development is the recent accumulation of product in some of our recovery wells that is different in characteristic from what we were previously dealing with. This indicates that we are possibly pulling in product from another source that we have not yet identified (although I suspect a nearby sump location as the culprit). We have another drilling program in the works for this year to further delineate the downgradient extent of the arsenic plume and to evaluate the other potential source of accumulated product. This work is tentatively scheduled for the latter part of August or September. Please let me know if this schedule should be accelerated or deferred due to a pending sale agreement. Another consideration related to off-site contamination, the Railroad Commission has not yet requested that NNG notify affected property owners, but I suspect that such a request is forthcoming. I am in the process of preparing a letter, addressed to you, identifying the affected property located between the facility and the Nature Conservancy property. In light of these considerations and the continued interest by the Railroad Commission, I have adjusted the spending forecast as follows: 2000 $100k 2001 $100k 2002 $60k 2003 $20k 2004 $20k 2005+ $20k Total $320,000+ Notes regarding this forecast: 1) This should be viewed as an optimistic forecast (i.e., if everything goes fairly well). 2) No $ are included in this forecast for managing off-site property issues that may arise. 3) Assumes that a second source area is confirmed and additional recovery wells will be installed next year to recover PSH from this area. 4) Assumes that the existing recovery system will be adequate for continued operations. 5) Assumes that the recovery system continues to operate through 2002. 6) Assumes that the Railroad Commission will continue to renew the minor permit for disposal of recovered liquids. 7) Assumes that quarterly groundwater sampling will continue at least through 2005. 07/17/2000 05:58 PM Louis Soldano Louis Soldano Louis Soldano 07/17/2000 05:58 PM 07/17/2000 05:58 PM To: lsoldano@wt.net, George Robinson/OTS/Enron@ENRON, Stephen Herber/ET&S/Enron@ENRON, Kim Wilkie/ET&S/Enron@ENRON cc: Subject: Gomez PSA george - how would you value to the GW problem at Gomez?? I took a look at some old notes (Oct 1999) and we had the following: 2000 $80k 2001 $30K 2002 $20k what do you think??? ---------------------- Forwarded by Louis Soldano/ET&S/Enron on 07/17/2000 05:53 PM --------------------------- From: Kim Wilkie 07/17/2000 04:49 PM To: Stephen Herber/ET&S/Enron@ENRON cc: Louis Soldano/ET&S/Enron@ENRON Subject: Gomez PSA Steve, after talking to Lou, we have a couple of choices: (1) you could tell them that they have to assume the groundwater problem (based on the value of the property, do you think they priced it into their offer?), (2) we can specifically retain the groundwater issue as we previously discussed or (3) we can remain silent on the issue and assume that they will include it in their environmental compliance report ( the only problem with this choice is that they have a termination right if title defects plus environmental compliance issues exceed 5.0% of the purchase price - basically this would give them a free out since this is probably a $250,000 problem that they already know about). The attached draft assumes you will choose (2) since that is what we have been discussing all along. Please call me if you have any questions. As I mentioned on your voicemail, I have an appointment out of the office in the morning and may or may not work out of the house after that. Regardless, I will have the document with me and can talk it over with you or make changes as you see appropriate. My number at home is 713-664-7472. Thanks, Kim
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