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Enron Mail |
Good point on the timetable. If we can get to the letter of intent stage
Caithness soon after this meeting Jeff is setting up--by mid July maybe--what would a realistic timetable be? It looks from the map like the ROW would be all along existing hiway--not virgin territory. If this thing is a "lateral" not mainline, and if we can keep project cost below the 2001 prior approval blanket cost limit (whatever that is--around $21 million I think) can we build under the blanket??? Lets talk before the meeting in Houston so we can have a complete reaction for the Caithness guys on cost, timetable, etc. DF Keith Petersen 06/28/2000 07:57 AM To: Jeffery Fawcett/ET&S/Enron@ENRON cc: Mary Kay Miller/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON Subject: Caithness Big Sandy, LLC. Project Jeff, I realize you plan to bring the Certificates group in at a later date. But if they want gas service by the second quarter of 2001, we are most likely in trouble already. Unless there has been ROW work and environmental surveys completed. From the time we get approval to move ahead on the project, the certificate process will take approximately one year. Please call, if you would like to discuss further. Keith ---------------------- Forwarded by Keith Petersen/ET&S/Enron on 06/28/2000 07:35 AM --------------------------- From: Mary Kay Miller 06/28/2000 07:23 AM To: Keith Petersen/ET&S/Enron@ENRON, Glen Hass, Tim Kissner/ET&S/Enron@ENRON cc: Subject: Caithness Big Sandy, LLC. Project Please reveiw and provide preliminary certificate items and rates will follow up later. MK ---------------------- Forwarded by Mary Kay Miller/ET&S/Enron on 06/28/2000 07:18 AM --------------------------- Jeffery Fawcett 06/27/2000 04:17 PM To: Drew Fossum/ET&S/Enron@ENRON cc: Mary Kay Miller/ET&S/Enron@ENRON, Ronald Matthews/ET&S/Enron@ENRON, Terry Galassini/ET&S/Enron@ENRON, James Centilli/ET&S/Enron@ENRON, Darrell Schoolcraft/ET&S/Enron@ENRON, Paul Cherry/GPGFIN/Enron@ENRON, Rich Jolly/ET&S/Enron@ENRON, Susan Scott/ET&S/Enron@ENRON, Julia White/ET&S/Enron@ENRON, Kevin Hyatt/ET&S/Enron@Enron, Steven Harris/ET&S/Enron@ENRON Subject: Caithness Big Sandy, LLC. Project The project's consultant, George Briden, of Snake Hill Energy, called me today to say that Caithness Corp. has decided to move forward with plans for the Big Sandy, LLC. Project. To refresh your memory, the project is a proposed IPP to be located about 40 miles south of TW's pipeline along Highway 93, about 2 miles outside of Wickieup, Arizona. I've attached a simple bitmap below (click on it and hit "view") indicating the location of the project relative to Transwestern's facilities. Ultimately, the project would be built for approx. 1,000 MW of generation in two phases. Phase 1 will burn approx. 80,000 Dth/d, and phase 2 will burn an additional 120,000 Dth/d. Initial indications are for the project to be in service in early 2002, with the lateral pipeline and gas service required as early as Q2, 2001. Caithness Corp., based in New York, is a privately held company with diverse interests including geothermal (renewable) electric generation facilities (Coso Plant) in California. George reported that Caithness would like for Transwestern to build, own and operate the plant with facility costs (current estimate, $20.3MM) to be amortized vis-a-vis a throughput/rate commitment. Caithness would also like the project to be interconnected to El Paso's system and the Questar Southern Trails Pipeline if that project should ever be completed. Obviously, we'll have to wade throught the legal/regulatory issues surrounding this deal structure, as well as the requisite credit assurances. With respect to the former, I think if we view this pipeline ownership/operation structure more as a financing mechanism with associated operating agreements, then we're probably OK. With respect to the later, George assured me that Caithness can/will set-up a funding mechanism that would give Transwestern sufficient assurance of payback. George would like to bring down a couple of representatives from Caithness to meet with Transwestern sometime the week of July 10. He suggested either Omaha or Houston for the meeting, inasmuch as he'd like Drew Fossum to be present. Drew, I'm thinking it might be easier/better to have the meeting here in Houston given our immediate access to maps and engineering data regarding the lateral pipeline. If you concur, what day(s) do you have open that week and is there an opportunity for you to hop Bill's plane for either one or both legs of the trip down here? I'll ask Ron Matthews and maybe one or two others to join us so we can cover a fairly broad base of functions in one sitting. Will you get back with me as soon as you can? Others on the distribution, if you can sit tight we'll get you more information as this meeting date/time comes together. Thanks.
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