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Enron Mail |
As I discussed with Johnny, I do not believe it is necessary to pursue the
Standing Rock option at this point. I believe we could reach agreeable terms later down the road if the project proves to be feasible and thereby avoid any up-front payment. Steve 08/02/2000 04:29 PM Louis Soldano Louis Soldano Louis Soldano 08/02/2000 04:29 PM 08/02/2000 04:29 PM To: Michael Moran/ET&S/Enron@ENRON, Stanley Horton/Corp/Enron@Enron, Bill Cordes/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, lslade@modrall.com, jw1000mac@yahoo.com, laruzow@concentric.net, James Derrick/Corp/Enron@ENRON cc: Johnny McGee/OTS/Enron@ENRON Subject: Zaman Meeting - 7/31 - Navajo Status Please see the attached. With the insistence of a fee up-front for the option on Standing Rock, do we still have an appetite for such an option?? Involving Bill Johnson in the discussions would be a positive - at least he would let us know right away where we stand and could expect to go on terms. A letter is in the works and will be forwarded to everyone for a review once the lawyers have finished. As soon as Zaman gives us some dates we will try to arrange a meeting with Zaman, Tapahe/Johnson, and McGee, Ruzow and Soldano ---------------------- Forwarded by Louis Soldano/ET&S/Enron on 08/02/2000 04:09 PM --------------------------- Johnny McGee 08/02/2000 03:18 PM To: Louis Soldano/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON cc: Subject: Zaman Meeting I met with Akhtar Zaman in Dallas on 7-31 for the purpose of exploring options on how best to proceed with negotiations on terms and conditions for TW's 6-year right-of-way extension and to continue our dialogue regarding TW's request for an option for a compressor station site on Tribal Trust Lands. First, with regards to negotiations on terms and conditions , Zaman was agreeable to participate in meetings between with McGee, Soldano, L. Ruzow and Navajo DOJ regarding terms and conditions. I reinforced TW's desire to commence such negotiations as soon as possible. I voiced concerns with potential delays to the negotiating process likely to result from Ms. Tapahe's pending delivery. When questioned if the Task Force had selected an alternate for Ms. Tapahe Zaman responded by stating that Bill Johnson would likely step in to support the Task Force. Especially since he is now apparently the Assistant General Counsel of the Division of Natural Resources. Zaman agreed to provide McGee with a list of possible meeting dates. Zaman indicated that he had had discussion with Ms. Tapahe regarding the terms and conditions and the importance of reaching agreement regarding same. Next, regarding what appears to be a more difficult issue, the compressor station option, Zaman again advised that TW should keep such issue separate from right-of-way extension negotiations. Zaman stated that even if the Tribe were to agree to grant an option, in his mind , TW would still face some opposition from the land user and local chapter He indicated that any option would be contingent upon TW acquiring Environment and BIA approvals. I informed him that TW would be willing to accept such risks. Zaman stated that the Tribe had not given any such long term (9 year) options in the past. He did recall the one (1) year option with TW which resulted in the construction of the San Juan Lateral. We discussed likely consideration for the site whereby Zaman tossed out an annual rental figure of $200,000 (Standing Rock number) which Zaman indicated that he might want to adjust to account for the change in consumer price index since TW's cancellation of its 1998 Standing Rock project. He also advised that if an option were to be considered then TW should expect to pay up front, a 20% ($360,000.00) non-refundable, fee for such option. Zaman reiterated that the whole issue of the compressor should be kept separate from our current negotiations. He stated that he would make a good faith effort to obtain consents if and when TW elects to go forward with the compressor site. He voiced some concern that others within the Task Force might want to raise an issue as to why the Tribe's throughput methodology was discarded during the horse trading extension negotiations. Especially in light of the development of TW's apparent desire to secure a site for a compressor station to increase volumes. Although I understand that Zaman may be simply strengthening his position, I too am fearful that the compressor option issue could be harmful to the final resolution of the extension have no desire to revisit the throughput issue. In closing, Zaman requested that TW confirm its acceptance of the $15 million plus the $2.34 million dollar annual payment (adjusted for CPI) for the 6 year right-of-way extension in writing. I advised Zaman that I would discuss compressor issue with members of TW's negotiating team. He indicated that he would like for TW to exclude the option issue from any confirmation letter for the reasons above mentioned. Please call to discuss. Thanks!
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