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Enron Mail |
---------------------- Forwarded by Kay Mann/Corp/Enron on 04/04/2001 04:58
PM --------------------------- John Moore 04/04/2001 04:30 PM To: RSmith@brownsville-pub.com, jdavidson@davidsontroilo.com, jbruciak@brownsville-pub.com, jlocke@brownsville-pub.com cc: Mitch Robinson/Corp/Enron@Enron, Kay Mann/Corp/Enron@Enron, Drew Tingleaf/Enron@EnronXGate Subject: Letter of Intent Gentlemen, I have received a fax confirmation of Mr. Bruciak's execution of the Confidentiality Agreement this afternoon. Thank you. Attached is a draft Letter of Intent ("LOI") pertaining to our discussions about the feasibility and development of an approximate 500 MW power station sited at or near the Port of Brownsville. The LOI is structured similarly to the existing Participation Agreement, wherein BPUB and ENA exclusively collaborate to investigate the feasibility of the power station and secure a suitable site, if justified. It is proposed that ENA cover the costs of the development effort, including permitting and site acquisition, with such costs being eventually treated as either Project construction costs or operating costs, depending upon the nature of the expense. I have also proposed that ENA pay BPUP a $10,000 Consulting Fee to cover any outside expenses associated with the drafting and execution of this agreement and the site option agreement(s). The proposed term of the LOI expires 31 December 2001, unless either of us determines earlier that the joint effort will not be successful. During the term of the LOI, it is proposed that BPUB and ENA will determine and agree upon an appropriate Project equity participation and finance structure. Something we may want to consider is the transfer of BPUB's equity in the Oklaunion plant in exchange for equity in the new Cameron County plant. This would be especially appealing if BPUB's interest in Oklaunion also included switching rights through the nearby DC Tie and if there are additional Oklaunion interests available with DC Tie switching rights. Please let know a convenient time when we talk through the proposed LOI and address any of your questions. JMoore
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