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Enron Mail |
Rusty,
Let's meet at your convenience. We need to identify some of the tripping points and critical path items, especially since our goal (I assume) will be to keep equipment, EPC contracts, land (?), etc off Enron's balance sheet while things are developing. Talking through the process should help. Kay Rusty Stevens 06/28/2000 10:51 AM To: Kay Mann/Corp/Enron@Enron cc: Fred Mitro/HOU/ECT@ECT, Ben Jacoby/HOU/ECT@ECT, Laura Luce/Corp/Enron@Enron, Sheila Tweed/HOU/ECT@ECT Subject: PERC Negotiations Attached is a proposal that was shared with PERC last week. We are now awaiting PERC's response. I am assuming that they will agree to the terms since their alternative is to lose $ on the units at resale with no opportunity for recapture. I wanted to give you a "heads-up" since the timing will be is tight once I get the green light to proceed with legal docs. Please let me know what documents we will need and how you suggest we expedite the process (LOI or otherwise). Calumet Project Participation (with ABB's): ENA has verbally told them we will not participate in Calumet and the LLC term to get to execution has expired. Upon release by Laura/Ben - need to send them formal notice under the PDA that we are withdrawing our notice of interest to participate in Calumet. Going Forward: We need to put the general terms in the proposal into a formal document. Letter of Intent authorizing us to take control of the development/site sales process at our expense - if they the deal unwinds we get reimbursed for our direct costs spent to further perfect/sell their sites. Assess PERC's legal position with ABB (was it fraud or gross negligence that ABB failed to mention this problem they've known about for 10 years?). Authorization/indemnification from PERC to negotiate with ABB to grant contract concessions that will benefit Enron Canada as subsequent owner. Enron Canada will likely be involved as lead negotiater with ABB - who in legal will work with ENA/Enron Canada on this ? Timing: Enron Canada - To meet their 2001 schedule we need to have legal authorization to engage ABB by early-July. "Pitch Book" - In its current form includes Calumet/Torrence we need authorization from PERC - Bruce is expecting to begin circulation by week of July 10th. EPC contractors - They bid Calumet using ABB, and we want them to re-bid for LM 6000's. Need authorization from PERC (July 14th or sooner) with cost coverage provisions, since the EPC contractors are likely to want to charge us $50-$100k to re-bid the deal.
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