 ,
 I think he just solved your problem.

STEVE.THOMAS ASKS (POSTED ON 10/18/2001 10:35 A.M.)
The NNG Storage group is working on a potential project at the Redfield Storage facility that has 30% rate of return over 10 years. This project involves expense dollars rather than capital dollars to fund the project. The problem is that there is a negative EBIT during the first 3 years of the project that affects cash flow in a range from $1,000,000 to $2,000,000 each year. Starting in year 4, going forward, the annual revenue will be $2,000,000 plus. What is your view of long term positive projects versus the negative impact on short term annual revenue targets?

STAN HORTON REPLIES 
Good morning, Steve. This particular project has not been presented to me for approval. I can tell you this, I like projects that have 30 percent rates of returns. I don't think I've turned one of these down! I look forward to reviewing this project with Danny and Dave and the NNG Storage team.


Rod Hayslett
EB4054
713-853-6178
danny.mccarty@enron.com