Lost Creek-Outstanding Issues

----- Forwarded by Shonnie Daniel/HOU/ECT on 09/01/2000 02:17 PM -----

Roger Balog
09/01/2000 02:13 PM

To: Shonnie Daniel/HOU/ECT@ECT
cc:
Subject: Lost Creek-Outstanding Issues

Shonnie
See below the list that Lal sent to me-Roger
----- Forwarded by Roger Balog/HOU/ECT on 09/01/2000 02:12 PM -----

Lal Echterhoff
09/01/2000 02:03 PM

To: Roger Balog/HOU/ECT@ECT
cc: Nick Cocavessis/Corp/Enron@Enron
Subject: Lost Creek-Outstanding Issues

Roger,

Currently we have the following issues outstanding with Merrick which will or
may impact the final cost of the
project:

Change Orders:
-Change in the CIG tie-in point. CO approved for $66,375
-Move plant inlet and outlet flanges for blinding. CO not received, expected
to be about $40,000.
-As-built survey for the plant. Change just requested, expected to be about
$3,000.

Notices of Force Majeure:
-March 13, various archaeological sites.
March 28 Jeffery City archaeological site.
-April 3, Buffalo Creek archaeological site.
These notices state that there is a potential cost and/or schedule impact
for these sites. The
pipeline was placed in service by the date required under the contract, so
there is no schedule impact. We have not received any notice that there
has been a cost impact.

Liquidated Damages:
-The pipeline was ready for service and was flowing gas by August 31, so
there are no liquidated damages associated with the pipeline. The
in-service date for the plant was extended to September 4. Work is still
in progress on the plant and we will determine the status on September 4.

I do not know of any other issues at this time, but once facilities are
completed we will need to conduct final inspections and run tests before
acceptance.

I am sending you copies of the Change Order that we have received and the
Notices of Force Majeure.

Lal