Spreadsheet: david_delainey__8071__Technical Book 080300
Sheet: Risk

ENRON NORTH AMERICA
TECHNICAL RISK REPORT
Business Unit | Project Name | Responsible  Party | Project Type | $$ Exposure | Assessment of Risk | Updated | Update/Comments
West QF | [NAME](LVCLP) | [NAME] | O&M |  | The trips and alarms caused by the Mark V LM Control System remain a concern.  The erroneous trips and alarms have stopped since GE replaced the control engine in May.  The trips result is lost revenues associated with the PPA and merchant sales. | 2000-07-20 00:00:00 | GE continues to perform a root cause analysis to determine the cause.  [NAME] officially filed a warranty claim that covers any issues involved with the workmanship, material, design and software of the control system.
 | Priscilla (LVCII) | [NAME] [NAME] | [NAME] |  | 1) Bid player options limited. Two bidders involved. Med risk. 2) Site boundary noise level - Low risk 3) HRSG long lead items - Med risk | 2000-07-20 00:00:00 | 1) High level of involvement in bid scope preparation and bidder response preparation. 2) Modeling for mitigation. 3) Working optionality early in the process with HRSG suppliers.
 | Columbia | [NAME] [NAME] | [NAME] | Development Budget Amount | 1) Verify the quantity of water the Port can provide under its current water right.  2) Interconnection - Need to get ahead of Avista-Steag 3) Determine if the project can go through the Washington Energy Facility Siting Council's (EFSEC) expedited process. 4) Determine if a full year of ambient air data collection is required. | 2000-07-20 00:00:00 | 1) Pursue options with the City of Longview if quantity is not available at the Port. 2) Issued request for interconnection to BPA 7/19/00. 3) Meeting scheduled with EFSEC to discuss expedited process. 4) Consultant hired to determine if data is required by 7/31/00.
 | Black Mtn Power  (Cactus) | [NAME] | Operational Review |  | No current Risk | 2000-08-03 00:00:00 | The facility is currently over 95% available and ENA's ownership is 15%.  The plant availability has to fall below 90% for capacity payments to decrease substantially.
 | Bighorn (Colstrip) | [NAME] | Operational Review |  | No current Risk | 2000-08-03 00:00:00 | Big Horn's historic availability exceeds 92%.
Canada | Invasion Energy | [NAME] | Operational Review |  |  | 2000-08-03 00:00:00
Canada/           Industrials | Papier [NAME] | [NAME] | Construction | $3-$5[NAME] | 1) Construction completion - Delays in achieving mechanical completion.  Weekly conference calls with EPC contractor to monitor. 2)  Production ramp-up not meeting plan. | 2000-07-20 00:00:00 | 1) Construction completion delayed 4 weeks due to problems with piping contractor.   2) Production ramp-up curve has been delayed one week from plan.  Close to summer "non-construction" period which could impact project completion.  Some contractors are seeking additional payments for delays and changes in scope - $3-$5mm on a $70 mm project.
Industrials | Garden State |  | Asset Monetization |  |  | 2000-08-03 00:00:00
 | Dioshawa |  | Asset Monetization |  |  | 2000-08-03 00:00:00
 | [NAME] |  | Asset Monetization |  |  | 2000-08-03 00:00:00
Principal Investing | Catalytica | Lydecker / Mays | Xonon |  |  | 2000-08-03 00:00:00
 | [NAME] | Lydecker | Operational Review |  |  | 2000-08-03 00:00:00
 | Venoco | Lydecker | Operational Review |  |  | 2000-08-03 00:00:00
Special Assets | Heartland Steel | [NAME] | Construction |  | 1) Production ramp-up, output quantity and quality not matching ramp-up production.  Brought in industry technical expert ([NAME] from Metal Projects Engineering and Management in Chicago) to assist in plant evaluation and study.  He has been on site with Enron financial people for 4 weeks. | 2000-07-20 00:00:00 | Working through problems with automated production and billing system.  Technical problems with cold mill startup have been discovered.  Alignment check scheduled for next week.
 | Kafus | [NAME] | Construction |  | 1) Construction risk at Lackawanna MDF plant.  Stone and Webster Engineers and Constructors did not pay subcontractors for 60 days so subs left on May 5.  Have met with CanFibre and closely monitoring their construction progress. 2) Riverside MDF plant - Production ramp-up outputquantity and quality not matching projections.  Brought in industry expert ([NAME] from Oregon State University Forest products) to assist in evaluation. 3) Kanaf - production ramp-up.  Evaluated new plant manager. 4) [NAME] ramp-up, review and monitoring. | 2000-07-20 00:00:00 | 1)  Lackawanna - Stone and Webstre is now off the property and CanFibre is managing the project directly. 2) Riverside - sales is not keeping up with production so the plant may be shut down for two weeks in August. 3)  [NAME] - production quality has improved markedly and now seems to be acceptable and stable. 4) [NAME] rejected material has been removed from building and they are now producing acceptable product.
 | City Forest | [NAME] | Construction |  | 1) Production ramp up not matching projection for outputquantity and quality.  Brought in industry experts ([NAME] and Associates) to assist in evaluation process.  Poor internal coordination between two divisions of the paper machine manufacturer (voith [NAME]) let to problems with Yankee dryer and headbox.  Weekly conference calls to review progress. | 2000-07-20 00:00:00 | Have a sheet wrinkle problem since last September which is still not completely understood.  It was learned in May that the Yankee had an incorrect face profile, which was reground in June.  Production is now up to over 60 tons per day but needs to come up another 20 tons per day.  [NAME]-up is still 6 months behind where it should be.
 | EcoGas | Maffet/Mays | Operational Review |  |  | 2000-08-03 00:00:00
 | NG Resources | [NAME] |  |  |  | 2000-07-20 00:00:00
East | [NAME] | Virgo
East QF | Linden 6 | [NAME] | Construction |  | 1) Construction risk - quarantees and liquidated damages with EPC contractor (NEPCO) 2) Machine - GE guarantees  East Coast Power has a capable project manager following this project. | 2000-07-20 00:00:00 | Orders have been placed for major equipment.
 | East Coast Power |  |  |  |  | 2000-08-03 00:00:00
 | MCN | [NAME] | O&M |  |  | 2000-07-20 00:00:00
 | [NAME] | [NAME] | O&M |  |  | 2000-07-20 00:00:00
 | Tenaska | [NAME] | O&M |  |  | 2000-07-20 00:00:00
Mexico | Vitro | Virgo | Development/ Construction |  | 1) Engineering and design of project - will assign an engineering manager to work with contract engineer during critical early stages of project. 2) Construction risk - will assign a construction manager from ENA to monitor project through completion. | 2000-07-20 00:00:00 | Hiring ENA engineering manager and will utilize ENA construction management team.  Core team will be complemented by EE&CC or other resources on specific issues.
HPL/LRC | Project Neptune |  | Development/ Construction |  |  | 2000-08-03 00:00:00
Coal | American Coal Company | Helfrich | Operational Review |  |  | 2000-08-03 00:00:00
 | Black Mtn Resources | Helfrich | Operational Review |  |  | 2000-08-03 00:00:00
 | DPR Holding Co | [NAME] | Reserves & Operational |  |  | 2000-08-03 00:00:00
 | Jupiter Holdings | Helfrich | Operational Review |  |  | 2000-08-03 00:00:00
Energy Capital Resources | Aspect Resources | Pruett | Operational Review |  |  | 2000-07-20 00:00:00
 | Bonne Terre Exploration | Pruett | Operational Review |  |  | 2000-08-03 00:00:00
 | Brighman Exploration | Neyman | Operational Review |  |  | 2000-08-03 00:00:00
 | CGAS | Pruett | Operational Review |  |  | 2000-08-03 00:00:00
 | Cypress Energy | Pruett | Operational Review |  |  | 2000-08-03 00:00:00
 | Juniper Energy | Pruett | Operational Review |  |  | 2000-08-03 00:00:00
 | Mariner Energy | Melendrez | Operational Review |  |  | 2000-08-03 00:00:00
 | Sapphire Bay | Pruett | Operational Review |  |  | 2000-08-03 00:00:00
 | Sacramento Basin   ([NAME]) | Neyman | Operational Review |  |  | 2000-08-03 00:00:00
 | Sierra Well Service | Neyman | Operational Review |  |  | 2000-08-03 00:00:00
 | Texland Ltd | Pruett | Operational Review |  |  | 2000-08-03 00:00:00
 | [NAME] | Pruett | Operational Review |  |  | 2000-08-03 00:00:00
 | WB Oil & Gas | Neyman | Operational Review |  |  | 2000-08-03 00:00:00
Other | Syntroleum | Vetters | Operational Review |  | Austrialian Synfuels project | 2000-08-03 00:00:00
 | Masada | Lydecker | Operational Review |  | Solid Waste Conversion | 2000-08-03 00:00:00