urgent pastoria update water reached agreement kern water bank detailed term sheet backup water supply azurix assisted process part definitive agreement kern water bank says definitive agreement done month think might take longer slow calpine negotiations big issue condition precedent closing related water agreement want attach kern water bank term sheet say definitive agreement must materially similar term sheet calpine want precise big issue natural gas transport need calpine commit taking transport regardless credit support kern requires assignment tycholiz working kern nail kern original credit proposal wanted 40 mm letter credit backstop transport purchase price adjustment 0 10 mm based water bank deal minimum gain enron 30 mm plus upside upside provision purchase sale agreement allows ena pursue contract dwr price contract greater 56 mwh implied spark spread bona fide gas offer greater 11 400 based rockies plus transport ena gets 0 50 per mwh could worth 10 mm minor stuff transition agreement work together share risk signing closing development continues calpine needs work ge site owner cec etc timing expect sign march 13 close soon water bank deal done later april 30 2001 natural gas transport march 15 must commit kern expansion capacity project hairy without transport project get gas transport without project big potential liability 40 mm looking 100 000 day 15 years tycholiz working try limit liability project put l c dont think kern accept recommend commit transport clear put calpine concurrent closing project sale reason project sale calpine close permitted ca project equipment gas supply wanted break project assets would remarket capacity potential significant loss approvals two dashes circulating divestiture ii ongoing development costs commitment kern divestiture dash gives us authority sell calpine second dash seeks approval additional development kern transport rac still debating form dash daily var estimate transport 5 mm 45 day liquidation period var 34 mm enron board directors second dash requires approval executive committee ene board scheduled meet conference call monday march 12 three page presentation meeting due rebecca carter friday