Enron Mail

From:david.owen@enron.com
To:chris.hilgert@enron.com
Subject:RE: Construction Expedition Letter
Cc:gerald.nemec@enron.com
Bcc:gerald.nemec@enron.com
Date:Tue, 27 Nov 2001 06:18:51 -0800 (PST)

Chris,
=20


Why are they removing language that let's us "..confer with Gulf's project =
management...and subcontractors..."? What's to hide? Remember, lack of su=
ch information is what led us to this 11th hour problem to begin with.....r=
eference the information I passed along yesterday. These folks do not appe=
ar to be familiar with what it takes to manage a fast track project. They =
don't monitor subcontractors performance on a real-time basis and/or in gre=
at enough detail to understand what is really going on and in order to AVOI=
D problems -- rather than find creative ways to manage them. It's a black b=
ox mentality to construction management, and it's risky. As I recall, thei=
r attorney said something like "We mange things differently than you might,=
and that's just the way it is. Sorry if you (Enron) don't like our style.=
" While he was referring to right-of-way acquisition at that moment, I can =
assure you that their project managers (Howell, Sims, Powell) have the same=
attitude. We need to audit construction progress in detail, because they =
will not.

Why don't they want to show us expediting costs? We're still liable for al=
l incremental costs if someone other than Gulf gets supply jurisdiction, ri=
ght. Seems to me we're still protecting our interests, which haven't been =
protected very well to date. (See above!) How can we not be concerned wit=
h our exposure to (potential) incremental costs? If we think it is highly =
unlikely that anyone other than Gulf will prevail in the jurisdictional dis=
pute, then maybe we could agree to this. In any case, without detailed cos=
t tracking we are creating an "incremental cost time bomb". The only quest=
ion is whether the regulatory / legal processes will set it off. (Pardon th=
e insensitive analogy.) =20

We need access to the information (as requested) in order to protected our =
interests, regardless of who is paying to get this project back on track. =
If we can only get one of the items I listed, it needs to be direct access =
to the subcontractors. We may not know the costs, but we will at least abl=
e to make sure construction progress is acceptable, and have a feel for con=
struction-related risks. If we need to give up something to get the agreem=
ent signed, give up interaction with Gulf Power project team and/or all Gul=
f Power project reporting. It is very difficult to get a meeting or confer=
ence with them anyway. Their project tracking and reporting are practicall=
y non-existent, and have no substantial value -- otherwise we wouldn't be i=
n our current predicament. =20
=20
Not sure if this constitutes comments or a short speech, but I hope it help=
s!
=20
Dave
=20

-----Original Message-----
From: Hilgert, Chris=20
Sent: Tuesday, November 27, 2001 5:38 AM
To: Owen, David
Subject: FW: Construction Expedition Letter


Dave,
=20
Comments please.
=20
Thanks,
Chris

-----Original Message-----=20
From: Nemec, Gerald=20
Sent: Mon 11/26/2001 5:24 PM=20
To: 'bill@katzlaw.com'=20
Cc: Hilgert, Chris=20
Subject: FW: Construction Expedition Letter



Per our discussion, please review and provide comments asap.=20

-----Original Message-----=20
From: "Jeffrey Stone" <jas@beggslane.com<@ENRON =20
Sent: Monday, November 26, 2001 4:51 PM=20
To: Nemec, Gerald=20
Cc: Hilgert, Chris; mawhowel@southernco.com=20
Subject: Construction Expedition Letter=20

Here are Gulf's proposed changes to match the concept discussed earlier thi=
s afternoon.=20

-----Original Message-----=20
From: Nemec, Gerald [SMTP:Gerald.Nemec@ENRON.com]=20
Sent: Wednesday, November 21, 2001 10:38 AM=20
To: rab@beggslane.com; Howell, Marion W.=20
Cc: Hilgert, Chris; Owen, David; Alexander, James C.=20
Subject: Construction Expedition Letter=20

For your review is the draft Construction Expedition Letter per our=20
discussions Monday.=20

<<GulfExpediteLetter2.doc<<=20


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********************************************************************** << F=
ile: GulfExpediteLetter2.doc <<=20
- GulfExpediteLetter2.doc <<GulfExpediteLetter2.doc<<