fw megs pluto sale update bad news fyi call jean original message miller kevin sent wednesday november 28 2001 4 08 pm mrha jean druzbik lisa hodge jeffrey sole iii carlos cc sherman cris melendrez jesus josey scott keel allan subject megs pluto sale update bad news importance high met morning stephen noe director handling potential transaction duke energy field services purpose meeting discuss outstanding due diligence items attempt get duke raise non binding 14 1 mm offer however first thing stephen offer apology duke found significant bust valuation model already enough bad news today duke overstated depreciation deduction resulted tax credit project depreciation schedule apparently left previous evaluation addition duke conducts evaluation tax basis resulting corrected evaluation 10 5 discount factor tax basis yields minimum value 11 5 mm upside included evaluation meeting called lisa druzbik run enron model tax basis using 7 year macrs depreciation enron model confirmed tax duke evaluation recall guaranteed payments represent bulk value deal side note believe duke make honest mistake trying trade deal stephen discussed upside potential project enron ran case hypothetical tieback 2009 10 mmboe using 25 discount factor tieback 1 9 mm npv stephen run similar case evaluation process informed stephen duke original 14 1 mm offer lower side enron expectation duke need include much upside possible get offer enron could seriously consider stephen aid dependent upon upside included duke might could get 12 5 13 0 mm range told stephen sure enron would view offer range best could also discussed pha duke may willing move forward without seeing pha order option ratifying later marathon choose keep everyone informed would welcome comments regarding proposed transaction thanks kevin