Enron Mail

From:greg.brazaitis@enron.com
To:steve.schneider@enron.com
Subject:American National Power: Chambers Energy Limited Partnership;
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Date:Thu, 9 Nov 2000 07:12:00 -0800 (PST)

Cc: nick.cocavessis@enron.com, gerald.nemec@enron.com, eric.gillaspie@enron.com,
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Steve,
I will hand deliver to your office an Interconnect Agreement which has been
executed by Chambers Energy. The Chambers Energy Project is the IPP to be
built on the east side of the Houston Loop which has a peak load requirement
for Phase I of 270 MMCFD and the parent company is American National Power.

The Interconnect costs will be paid by Chambers and the fixed price amount is
stipulated in the Agreement. The Interconnect is an independent agreement,
however, it will become a part of the body of agreements that will be
executed between ENA/HPL and Chambers for the plant. As you are aware we
have a construction proposal in front of Chambers to build laterals to this
plant including the lateral to HPL. Chambers has awarded the work to HPL and
they are currently indicating that the construction contract would be
executed by the end of this month.

HPL will operate the interconnect. The pipeline and meter are listed in the
Interconnect Agreement as Chambers Facilities. This is because the pipeline
and meter station will be built and paid for by Chambers under the
construction contract. The intent is that, after construction, Chambers
will then turn over the facilities to HPL for operation and control as part
of the transport and/or commodity deals. We have agreed to execute the
Interconnect Agreement because it will become part of the body of work needed
by Chambers to finalize thier financing, i.e. "proof" of a supplier.

Let me know if you have any questions.

Thanks,
Greg