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Check with Steve and Lorraine re: whether we should call their lawyer. I
don't want to call FERC except as a last resort. Thanks. DF From: Susan Scott 01/12/2000 01:05 PM To: Drew Fossum/ET&S/Enron@ENRON cc: Subject: Re: Red Cedar Drew -- HH did leave me the new lawyer's name and # so let's discuss whether we should phone him once Howard is safely on the plane to Costa Rica. In the meantime, Lorraine already asked Meaders for the cases Howard cited, but he said he'd have to consult with his lawyers in order to do that, so I'm sure the answer will be "no." Snooping around at FERC is starting to sound like a good idea, but I'm in uncharted territory here so won't do any of that before discussing it with you. From: Drew Fossum 01/12/2000 08:46 AM To: Bill Cordes/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@Enron, Lorraine Lindberg/ET&S/Enron@ENRON cc: Susan Scott/ET&S/Enron@ENRON Subject: Red Cedar Ugh. We'll keep working this angle if their new attorney shows up on deck, but I think Susan and I have done as much as can be done with Howard H. Do any of you know what the Red Cedar facilities look like? I.e. how many miles of line, any big diameter line, any compression, etc? Howard must have read some old cases and gotten himself spooked that their facilites aren't gathering under the modified primary function test. I'm not sure why he thinks signing a transport contract with us will make their situation any worse, but that seems to be his conclusion. If Steve and Bill can't nudge Red Cedar's management into doing the deal, I'd suggest that you both or one of you ask Tsuri (sp?) to have his new lawyer call me and Susan after Howard leaves, maybe with one of the Kinder Morgan lawyers on the phone also, and we'll try to straighten this out. ---------------------- Forwarded by Drew Fossum/ET&S/Enron on 01/12/2000 08:37 AM --------------------------- From: Susan Scott 01/11/2000 05:29 PM To: Drew Fossum@ENRON cc: Subject: Red Cedar I regret to report that I just ended a very unproductive phone conversation with Mr. Hertzberg. He thanked us for all our cooperation but politely declined to give me any information on what authority he was relying on to conclude that there is a jurisdictional problem. However, it sounded to me like whatever authority he does have is shaky at best. He also sounded interested in the possibility of our making some sort of anonymous inquiry at FERC (if such a thing is possible) on the issue. Obviously they are very leery of making that phone call themselves and risking revealing their identity. He said he would discuss it with Ed Meaders. Also, he mentioned that after tomorrow he will be on vacation for a month, and another attorney will be taking over in his absence. That could be good, or it could be bad. Maybe Lorraine can sweet talk Meaders into at least citing us some cases from Hertzberg's memo. At the very least, I hope he will show it to the Kinder Morgan lawyers.
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