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As I read it, the only potential action item that involves me directly has to
do with a KVB Enertec purchase order. I am not sure which one you are addressing. I also sould direct you to Jim Meyer on this. We do receive from time to time copies of POs but typically we submit Purchase Requests and Jim issues the POs. Depending on the service or item we may need to have a copy of the PO on site. But typically we ask Jim for it when applicable. He has copies of all POs and would just need to know which one you want. Thanks, -Pat Enron North America Corp. From: Mitch Robinson 12/08/2000 11:30 AM To: "Rippy, Roger" <rogerrippy@akllp.com< cc: <stuart.zisman@enron.com<, Ross Newlin/HOU/EES@EES, Jon Cathers/Corp/Enron@Enron, Mitchell Hurt/Corp/Enron@Enron, Don Miller/HOU/ECT@ECT, Benjamin Rogers/HOU/ECT@ECT Subject: Re: Schedule Updates See below. My comments are in quotation marks "". Mitch "Rippy, Roger" <rogerrippy@akllp.com< on 12/07/2000 09:29:26 PM To: <Mitch.Robinson@enron.com< cc: <stuart.zisman@enron.com< Subject: Schedule Updates Mitch, There are a few items on which I need your input in order to update the schedules for Brownsville and Caledonia. Stuart has asked me to follow up with you. In re: Brownsville I am still waiting on certain purchase orders from KVB Intertech and Seimens (for telephone support), as well as any others that may be out there. "Mitchell/Ross, please have them faxed to my office number at 713-345-7384. Time has become more critical. In order to save time, please also fax copies directly to Roger's office - - the fax number is below" In re: Caledonia I am also waiting on a purchase order from KVB Intertech, as well as any others that may be out there. "Pat/Ross, please fax to my office and directly to Roger" Further, I am waiting on some spill info for Schedule 4.1(n), Environmental Matters, of Caledonia. Specifically, I need a blurb to insert into the schedule. "Already sent by Gus. Let me know if you need anything else." Also, on Schedule 7.12, Stuart stated that you are preparing some updated to Excluded Assets for Caledonia. "Pat, you stated in our conference call that there were some items that might have been at the plant that were of a personal nature and therefore would not be included in the asset sale. In general, if they are low dollar (e.g. $500), then I don't believe you need to specifically exclude them. This isn't meant to be a big deal; what I don't want to have happen is the buyer gets the plant and remembers a large drill press was at the plant and isn't anymore because it was your personal press. Make sense??" Finally, I am not clear on what to do on Schedule 4.1(v) on Caledonia in regard to the defective blades as well as to some problem with the (Westinghouse) bearings. I need blurbs to insert into the Schedules. I have seen some documentation via e-mail, but do not know how these items should be described in the Schedules. "Had a discussion with a bidder this morning. I recommend the following blurb. Please review from a legal stand point and advise. - - - Though the generator bearings are operating correctly, the Brownsville turbine vendor has implemented an upgrade to these bearings at other plants. Enron will make commercially reasonably efforts to get the vendor to conduct this upgrade as a warranty item. - - - The Caledonia turbine vendor has recently issued a Technical Information Letter (TIL) that could limit turbine operations during low ambient conditions. Enron will make commercially reasonable efforts prior to deal closing to implement the control curve changes recommended in the TIL - - - Enron will continue to make commercially reasonable efforts to install new silencers on the exhaust of units 1 and 2 at Brownsville in an attempt to mitigate possible start-up noise. Enron will provide XXXXXXX copies of technical descriptions of the silencer improvements once received from the vendor. If vendors provide possible solutions that substantially deviate from a silencer upgrade, Enron will get xxxxxxx's concurence prior to proceeding. Enron will cover the cost of the silencer upgrade up to $500,000, and Enron will make commercially reasonable efforts to complete the upgrade prior to June 1, 2000. If the upgrade completion is not likely to occur prior to June 1, 2000, Enron will get xxxxxx's concurrence prior to proceeding." Please update me at your earliest possible convenience as we are still in negotiations with the counterparty and may be executing this agreement this weekend. Please call me with any questions. Thanks. RAR Roger A. Rippy, Attorney Andrews & Kurth LLP 600 Travis Street, Suite 4200 Houston, TX 77002 Phone: 713.220.4458 Fax: 713.238.7128 e-mail: rogerrippy@andrews-kurth.com
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