Redrock Permit Issue, Requested Information ,
 Joe, presented below is the first memo I sent out concering the air permit 
issue:

[Yesterday evening I phoned both the state of Arizona ( agency for stations 1 
and 2) and Region 9 EPA ( agency for stations 3 and 4) concerning the status 
of when the air permits would be issued by both agencies for the Redrock 
expansion.  I was surprised to find out that both agencies stated a 2-4 month 
delay prior to issuance.  They cited back log of other permits, public 
comment periods, and workload as being the main reasons.  I am particularily 
disappointed because there were pre meetings with both agencies identifying 
what was to be included in each application package, and even after the 
applications were submitted in March of this year, each agency came back and 
asked for different information that from what was discussed at each meeting.

I have a call into the state of Arizona ( construction is to begin at Station 
2 and they have jurisdiction for this station) to see if we can initiate  
some construction activities  such as laying pipe and building foundations 
prior to receiving the permit.  I have been given these types of approvals 
from other agencies in the past, but these types of approvals are extremely 
narrow and restrictive.   If this flys I am sure that they will require us to 
make sure the turbine is not brought on site until the permit has been 
issued.  I know this will require written approval from the agency, but this 
may allow us to proceed on schedule and avoid any delays.  Ill keep you 
apprised of this issue.]

I spoke with the ADEQ after our conference call and they directed me to 
another group (compliance) in the air permit section.  They strongly 
suggested that I contact the compliance group before contacting Nancy Wrona, 
Director of the ADEQ.  I left a message with the supervisor of the ADEQ 
compliance section, Kathy McConnell (?) 602-207-2328, but have not heard back 
from her.  Either Bill Kendrick or I will  be touching base with her again, 
tomorrow.

Arnold has given me the following list of construction items he would like to 
have the ADEQ grant us permission/waiver to do in leau of receiving the air 
permits:

 all earthwork
 trench construction and piping tie ins
 all foundation and building construction
 installation of ancillary equipment

This list is probably too aggressive and falls out of what the agency may 
allow us to do.

The EPA contact for the Sta. 3 and 4 air permits: permit engineer  Roger 
Cohn      (415) 744-1238
      Supervisor  Geraldo Rios    (415) 744-1259

The ADEQ contact for Sta. 1 and 2 air permit permit engineer  Shudeish 
Mahadev (?)   (602) 207-2323
      Director   Nancy Wrona
joe.hartsoe@enron.com, william.kendrick@enron.com, 