From: drew.fossum@enron.com
To: keith.petersen@enron.com
Cc: jeffery.fawcett@enron.com, mary.miller@enron.com
Date: 2000-06-28 08:57:00+00:00
Subject: Re: Caithness Big Sandy, LLC. Project

Good point on the timetable.  If we can get to the letter of intent stage 
Caithness soon after this meeting Jeff is setting up--by mid July maybe--what 
would a realistic timetable be?  It looks from the map like the ROW would be 
all along existing hiway--not virgin territory.  If this thing is a "lateral" 
not mainline, and if we can keep project cost below the 2001 prior approval 
blanket cost limit (whatever that is--around $21 million I think) can we 
build under the blanket???  Lets talk before the meeting in Houston so we can 
have a complete reaction for the Caithness guys on cost, timetable, etc.  DF




Keith Petersen
06/28/2000 07:57 AM
To: Jeffery Fawcett/ET&S/Enron@ENRON
cc: Mary Kay Miller/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON 

Subject: Caithness Big Sandy, LLC. Project

Jeff, I realize you plan to bring the Certificates group in at a later date.  
But if they want gas service by the second quarter of 2001, we are most 
likely in trouble already.  Unless there has been ROW work and environmental 
surveys completed.  From the time we get approval to move ahead on the 
project, the certificate process will take approximately one year.

Please call, if you would like to discuss further.

Keith
---------------------- Forwarded by Keith Petersen/ET&S/Enron on 06/28/2000 
07:35 AM ---------------------------
   
	
	
	From:  Mary Kay Miller                           06/28/2000 07:23 AM
	

To: Keith Petersen/ET&S/Enron@ENRON, Glen Hass, Tim Kissner/ET&S/Enron@ENRON
cc:  

Subject: Caithness Big Sandy, LLC. Project

Please reveiw and provide preliminary certificate items and rates will follow 
up later.  MK
---------------------- Forwarded by Mary Kay Miller/ET&S/Enron on 06/28/2000 
07:18 AM ---------------------------


Jeffery Fawcett
06/27/2000 04:17 PM
To: Drew Fossum/ET&S/Enron@ENRON
cc: Mary Kay Miller/ET&S/Enron@ENRON, Ronald Matthews/ET&S/Enron@ENRON, Terry 
Galassini/ET&S/Enron@ENRON, James Centilli/ET&S/Enron@ENRON, Darrell 
Schoolcraft/ET&S/Enron@ENRON, Paul Cherry/GPGFIN/Enron@ENRON, Rich 
Jolly/ET&S/Enron@ENRON, Susan Scott/ET&S/Enron@ENRON, Julia 
White/ET&S/Enron@ENRON, Kevin Hyatt/ET&S/Enron@Enron, Steven 
Harris/ET&S/Enron@ENRON 

Subject: Caithness Big Sandy, LLC. Project

The project's consultant, George Briden, of Snake Hill Energy, called me 
today to say that Caithness Corp. has decided to move forward with plans for 
the Big Sandy, LLC. Project.  To refresh your memory, the project is a 
proposed IPP to be located about 40 miles south of TW's pipeline along 
Highway 93, about 2 miles outside of Wickieup, Arizona.  I've attached a 
simple bitmap below (click on it and hit "view") indicating the location of 
the project relative to Transwestern's facilities.  Ultimately, the project 
would be built for approx. 1,000 MW of generation in two phases.  Phase 1 
will burn approx. 80,000 Dth/d, and phase 2 will burn an additional 120,000 
Dth/d.  Initial indications are for the project to be in service in early 
2002, with the lateral pipeline and gas service required as early as Q2, 2001.

Caithness Corp., based in New York, is a privately held company with diverse 
interests including geothermal (renewable) electric generation facilities 
(Coso Plant) in California.  George reported that Caithness would like for 
Transwestern to build, own and operate the plant with facility costs (current 
estimate, $20.3MM) to be amortized vis-a-vis a throughput/rate commitment.  
Caithness would also like the project to be interconnected to El Paso's 
system and the Questar Southern Trails Pipeline if that project should ever 
be completed.

Obviously, we'll have to wade throught the legal/regulatory issues 
surrounding this deal structure, as well as the requisite credit assurances.  
With respect to the former, I think if we view this pipeline 
ownership/operation structure more as a financing mechanism with associated 
operating agreements, then we're probably OK.  With respect to the later, 
George assured me that Caithness can/will set-up a funding mechanism that 
would give Transwestern sufficient assurance of payback.

George would like to bring down a couple of representatives from Caithness to 
meet with Transwestern sometime the week of July 10.  He suggested either 
Omaha or Houston for the meeting, inasmuch as he'd like Drew Fossum to be 
present.

Drew, I'm thinking it might be easier/better to have the meeting here in 
Houston given our immediate access to maps and engineering data regarding the 
lateral pipeline.  If you concur, what day(s) do you have open that week and 
is there an opportunity for you to hop Bill's plane for either one or both 
legs of the trip down here?  I'll ask Ron Matthews and maybe one or two 
others to join us so we can cover a fairly broad base of functions in one 
sitting.

Will you get back with me as soon as you can?  Others on the distribution, if 
you can sit tight we'll get you more information as this meeting date/time 
comes together.  Thanks.