ML022520166

Fourth Supplemental Employment Declaration of Martin S. Schenker Regarding Cooley Godward Llps Employment as Special Counsel to the Debtor and Debtor-in-Possession

ML022520166
Person / Time
Site:	Diablo Canyon
Issue date:	08/30/2002
From:	Schenker M Cooley Godward, LLP, Pacific Gas & Electric Co
To:	Office of Nuclear Reactor Regulation, US Federal Judiciary, Bankruptcy Court, Northern District of California
References
01-30923 DM, 94-0742640
Download: ML022520166 (6)

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.U COOLEY GODWARD LLP STEPHEN C. NEAL (170085)

MARTIN S. SCHENKER (109828),,

J. MICHAEL KELLY (133657)

One Maritime Plaza, 20th Floor San Francisco, CA 94111-3580 Telephone- (415) 693-2000 Facsimile: (415)951-3699 Special Counsel for Debtor PACIFIC GAS and ELECTRIC COMPANY UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION In re PACIFIC GAS and ELECTRIC COMPANY, a California Corporation

Debtor, Federal I.D. No. 94-0742640 Chapter I I Case No 0 1-30923 DM FOURTH SUPPLEMENTAL EMPLOYMENT DECLARATION OF MARTIN S. SCHENKER REGARDING COOLEY GODWARD LLP's EMPLOYMENT AS SPECIAL COUNSEL TO THE DEBTOR AND DEBTOR-IN-POSSESSION No Hearing Requested I, Martin S. Schenker, declare:

1.

I am an attorney at law, duly qualified and admitted to practice before this Court. I am a partner of Cooley Godward LLP ("Cooley").

I have personal knowledge of the facts stated herein and if called as a witness I could and would testify competently thereto BACKGROUND

2.

Pacific Gas and Electric Company, the debtor and debtor-in-possession herein

("Debtor"), originally retained Cooley as special counsel pursuant to that certain Order entered on May 8, 2001 ("Original Order"), approving that certain Application For Authority To Employ 775359 vIY)F FouRTH SUPPL. DECL. OF MARTIN S. SCHENKCER OMNN0llDOC RE: EMPLOYMENT OfCOOLEYGODWARD LLP I.

CAsENo 01-30923DM I

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I Cooley Godward LLP As Special Counsel to Debtor and Debtor-In-Possession ("Original 2

Application"), filed herein on April 26, 2001. The Original Application was supported by my 3

declaration filed on that same date. Pursuant to that certain Debtor's Supplemental Application 4

For Amended Order Authorizing Expanded Employment Of Cooley Godward LLP ("First 5

Supplemental Application") filed on August 31, 2001, the declaration of my fellow Cooley partner 6

Samuel M. Livermore in support of the First Supplemental Application filed on that same date, 7

and that certain Amended Order Authorizing Employment Of Cooley Godward LLP As Special 8

Counsel To Debtor And Debtor-In-Possession filed on September 13, 2001 ("First Amended 9

Order"), Cooley was, among other things, additionally authorized to be employed by Debtor 10 pursuant to Section 327(e) and, to the extent applicable, Section 327(a) of the Bankruptcyl Code, to II perform the additional services described in therein!t Pursuant to that certain Debtor's Second 12 Supplemental Application For Amended Order Authorizing Expanded Employment Of Cooley 13 Godward LLP filed on March 15, 2002, my second supplemental declaration filed on that same 14 date, and that certain Second Amended Order Authorizing Employment of Cooley Godvad LLP 15 As Counsel To Debtor And Debtor-In-Possession filed on March 25, 2002 ("Second Amended 16 Order"), Cooley was, among other things, authorized to be employed by Debtor pursuant to 17 Section 327(e) and/or Section 327(a), as applicable, to perform the additional services as described 18 therein. Finally, on May 20,2002, we filed that certain Third Supplemental Declaration of Martin 19 S. Schenker Regarding Cooley Godward LLP's Employment As Special Counsel To The Debtor 20 And Debtor-In-Possession, in which we made certain additional disclosures that came to our 21 attention pursuant to certain supplemental investigations.

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This declaration supplements our prior declarations in support of our employment 23 herein. Pursuant to Bankruptcy Rule 2014, I make this declaration to disclose to the Court, the 24 United States Trustee, and other interested parties an additional connection with the Debtor which 25 26

'Also, we filed that certain Supplemental Declaration of Martin S. Schenker Regarding Cooley Godward LLP's Employment As Special Counsel To The Debtor And Debtor-In-Possession on 27 August 22, 200 1, detailing certain services Debtor had requested Cooley provide which Debtor and we believed were covered by the Original Order, and the Court made a finding to this effect in 28 the First Amended Order.

,Oo-,,U, u.775959 v1/SF FOUmRH SumL. DECL. OF MARTIN S. SCHENKER x w ANNOII DOC RE: EMPLOYMENT OF COOLEY GODWARD LLP

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CASE NO. 01-30923 DM

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CASE NO. 01-30923 DM Ii recently came to our attention pursuant to our supplemental investigation of parties in interest who have filed objections to the Debtor's piroposed plan of reorganization (the "Plan Objecting Parties"). Part of Cooley's approved expanded employment by the Debtor pursuant to the Second Amended Order involves assisting with litigation in connection with the Debtor's plan of reorganization and/or opposition to other proposed plans. Accordingly, Cooley is now assisting the Debtor on matters which may be adverse to positions held by the Plan Objecting Parties. The following disclosure relates to a Plan Objecting Party as to which we have a connection that has not previously been disclosed.

ADDITIONAL DiscLosURE

4.

U.S. Bank, N.A., as successor by merger to U.S. Bank Trust, N.A. (collectively, "U.S. Bank") is a Plan Objecting Party, having filed limited objections to both the Debior's plan and the opposing plan, and is also a current client of Cooley in matters unrelated to the Debtor or these proceedings.

U S. Baiik was not on any prior list of interested parties investigated by Cooley, and therefore we only recently determined this connection in connection with our supplemental investigation as to the Plan Objecting Parties. However, while U.S. Bank is a Plan Objecting Party and Cooley is performing services on behalf of the Debtor in connectioAI with the Debtor's plan and the opposing plan, we are not and will not be involved in any aspect of either plan specifically relating to the objection by U.S Bank. Moreover, while we intend to continue to represent U.S. Bank in unrelated matters, we have not and will not during the pendency of our employment herein represent U.S. Bank in any matter relating to the Debtor or these bankruptcy proceedings.

5.

We do not believe that this connection precludes Cooley's authorized employment by the Debtor under either Section 327(e) or 327(a) of the Bankruptcy Code, and I believe that Cooley still satisfies any applicable Bankruptcy Code requirements for such employment.

However, if the Court, the representative of the United States Trustee, or other interested parties

,have any concerns about this additional disclosure, we invite any comments or requests for hearing, and we will set a hearing on this matter as soon as practicable if so requested I/I 2'

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10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 FOURTH SUPPL. DELl. OF MARTIN S. SOCHNKER Re:

EMPLOYMENT OFCooLEYGODWARD LiP 4

CAs-No. 01-30923 DM I declare under the penalty of perjury under the laws of the United States of America and the State of California the foregoing is true and correct.

Executed at San Francisco, California on August L 2602.

Martin S. Schenker

"-.7 775859 vl/AF OMKN0 I DC

I COOLEY GODWARD LLP J. MICHAEL KELLY (133657)

ROBERT L. EISENBACH (124896)

GREGG S. KLEINER (141311) 3 One Maritime Plaza, 20th Floor San Francisco, CA 94111-3580 4

Telephone-(415) 693-2000 Facsimile:

(415)951-3699 5'

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Special Counsel to Debtor 6

PACIFIC GAS AND ELECTRIC COMPANY 7

8 UNITED STATES BANKRUPTCY COURT 9

NORTHERN DISTRICT OF CALIFORNIA 10 SAN FRANCISCO DIVISION 11 In re Chapter I I 12 PACIFIC GAS AND ELECTRIC Case No. 01-30923 DM COMPANY, a California corporation, 13 COOLEY GODWARD LLP'S FOURTEENTH Debtor.

COVER SHEET APPLICATION FOR ALLOWANCE 14 AND PAYMENT OF INTERIM COMPENSATION Federal ID No. 94-0742640 AND REIMBURSEMENT OF EXPENSES FOR TIlE 15 PERIOD JULY 1, 2002 - JULY 31, 2002' 16

[No Hearing Scheduled]

17 Cooley Godward LLP (the "Firm") submits this Fourteenth Cover Sheet Application (the 18 "Application") for Allowance and Payment of Interim Compensation and Reimbursement of 19 Expenses for the Period July 1, 2002 - July 31, 2002 (the "Application Period").

20 This Application is made pursuaht to the Order Establishing Interim Fee Application and 21 Expense Reimbursement Procedure that was entered on or about June 26, 2002, as amended 22 November 8, 2002, and amended again as of March 18, 2002 ("Interim Fee Order"). Paragraph 4 23 of the Interim Fee Order contemplates that Pacific Gas and Electric Company (the "Debtor") shall 24 pay a portion of its professionals undisputed fees and all costs after the fifteenth day of the month 25 following the filing and service of the Application ("Interim Compensation")

26 In support of this Application, the Firm respectfully represents as follows:

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The Firm is Special Counsel to the Debtor. The Firm hereby applies to the Court 28 for allowance and payment of interim compensation for services rendered and reimbursement of

• Co*OoIu 697273 vt2/PS COOLEY GODWARD LLP's NOTICE

, y'0p 121 DOC OF 14" COVER SIIEET APPLICATION CASE NO. 01-30923 DM t,

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tutL expenses incurred during the Application Period.

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The Firm billed a total of $443,750 67 in fees and expenses during the Application Period. The total fees represent approximately 1,406 80 hours9.259259e-4 days <br />0.0222 hours <br />1.322751e-4 weeks <br />3.044e-5 months <br /> expended during the period covered by this Application. These fees and expenses break down as follows:

SPERIOD FEES

, EXPENSES TOTAL July I to July 31 _2002

$431 53400

$12,21667

$443.75067

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, -Accordingly, the Firm seeks allowance of interim compensation in the amount of a total of $379,020.57 at this time. This total is comprised as follows: $366,803.90 (85%) of the fees for services rendered' plus $12,216 67 (100% of the expenses incurred)_..

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For the post-petition period, the Firm has been paid to date as follows:

SAPPLICATION PERIOD

, -AMOUNT APPLIED DESCRIPTION AMOUNT PAID FOR 04/06/01-07/31/01 (I'post-petition

$305,20504 100%offeesand I

$305,205 04' interim fee application period) expenses 08/01/01-l1/30/01 (2"post-pettion

$981,48345 100 % of fees and

$981,48345 interim fee application period) expenses 12/01/01 -03/31/02 (3" post-petition

$781,965.23 100% of fees and

$781,86523 Interim fee application period) expenses 04/01/02 - 04/30/02 (April Cover

$217,26261 85% of fees and 100%

$217,26261 Sheet Application Period) of expenses 05/01/02 - 05/31/02 (May Cover

$211,29987 85% of fees and 100%

$211,29937 Sheet Application Period) of expenses 06/01/02 - 06/30/02 (June Cover

$155,768 15 85% of fees and 100%

$155,768.15 Sheet Application Period) of expenses TOTAL:

$2,652,384.35 S2,652,894.35

5.

To date, the Firm is owed as follows (excluding amounts owed pursuant to this Application):.

Payment of this amount would resuhl in a"holdback" of $64,730 10 All except $29,434.90 was paid from the Firm's prepetition retainer.

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CA WARD LLP's NOTICE SHEET APPLICATION ASE No. 01-30923 DM

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APPLICATION PERIOD --

AMOUNT DESCRIPTION 04/06/01-07/31/01 (1" post-petition S-0 Interim fee application period) I "-

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03/01/0i - 11/30/01 (2" post-petition interim fee application period).

I 12/01/01 - 03/31/02 (3& postipetitton

$-0 interim ree application ýIenod) "1 I_

04/01/02-04/30/02 (April Cover

$36,133 42 15% of fee holdback Sheet Application Period) r:

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I 05/01/02-05/3i/02 (May Cover

$33,697.12 15% of fee holdback SheetApplicationPeriod)

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1 DOC COOLEY GODWARD LLP's NOTICE OF 14TM COVER SHEET APPucATION CASE No 01-30923 DM I'

06/02/02 -06/30/02 (June Cover

$26,654 85 I I5% of fee holdback Sheet Application Period)

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STOTAL: I S96,485.39

6.

With regard to the copies of this Application served on counsel for the Committee, counsel for the Debtor and the Office of the United States Trustee. attached as Exhibit 1 hereto is the name of each professional who performed services in connection with this case during the period covered by this Application and the hourly rate for each such professional; and (b) attached as Exhibit 2 are the detailed time and expense statements for the Application Period that comply with all Northern District of California Bankruptcy Local Rules and Compensation Guidelines and the Guidelines of the Office of the United States Trustee

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The Firm has served a copy of this Application (without Exhibits) on the Special

'Noiice List in this case.

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Pursuant to this Court's Interim Fee Order the Debtor is authorized to make the payment relueist-ed herein withiut a further hearing or order of this Court unless an objection to this Applicati6n is filed with the Court by the Debtor, the Committee or the United States Trustee and served by the fifteenth day of the month following the service of this Application. Ifsuch an objection is filed, Debtor is authorized to pay the amounts, if any, not subject to the abjection The Firm is informed and believes that this Application was mailed by first class mail,lipstageprepaid, on or about August 30,2002.

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The interim compensation and reimbursement of expenses sought in this Application is on account and is not final. Upon the conclusion-of these cases, the Finr will seek fees and reimbursement of the expenses incurred for the totality of the services rendered in the case Any interim fees or reimbursement of expenses approved by this Court and received by the Firm (along with the Firm's retainer) will be credited against such final fees and expenses as may be allowed by this Court.

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The Firm represents and warrants that its billing practices comply with all Northern District of California Bankruptcy Local Rules and Comjerisition Guidelines and the Guidelines of the Office of the United States Trustee. Neither the Firm nor ary members of the Firm has any 2

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J. Mi-iael Kelly Special Ciel to Debtor PACIFIC IAS AND ELECTRIC COMPANY agreement or understanding of any kind or nature to divide, pay over or share any portion of the fees or expenses to be awarded to the Firm with any other person or attorney except as among the members and associates of the Firm.

WHEREFORE, the Firm respectfully requests that thi Debtoi pay compensation to the Firm as required herein pursuant to and in accordance with the terms of the Interim Fee Order.

Dated. August 30, 2002 COOLy GODWA LLP By:________k'L 3.

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Via Messenger to:

Debtor Harriet Fotis Pacific Gas & Electric Company 77 Beale Street Mail Code B30A Room 3193 San Francisco, CA 94105 Via Federal Express to:

Counsel to the Unsecured Creditors Committee Robert Jay Moore Paul S. Aronzon Milbank, Tweed, Hadley & McCloy LLP 601 South Figueroa Street Los Angeles, California 90017 Debtor's Counsel Counsel to the Unsecured Creditors Committee Janet A. Nexon Daniel M. Pelliccioni James L. Lopes Julia W. Brand Jeffrey L. Schaeffer Katten Muchin Zavis Howard, Rice. Nemerovski, Canady, Falk & Rabkin 1999 Avenue of the Stars, Suite 1400 Three Embarcadero Center, 7th Floor Los Angeles, California 90067 San Francisco, CA 94111 Counsel to the Unsecured Creditors Committee US Trustee John Robert Weiss Office of the U.S. Trustee Katten Muchin Zavis Attn: Stephen Johnson 525 West Monroe Street, Suite 1600 250 Montgomery Street, Suite 1000 Chicago, IL 60661 San Francisco, CA 94104-3401 XX (BY FEDERAL EXPRESS) I am personally and readily familiar with the business practice of Cooley Godward LLP for collection and processing of notices and other papers to be sent by overnight delivery service. Pursuant to that business practice, envelopes and packages are placed for collection at designated stations and in the ordinary course of business are that same day 706766 vIiSF PROOF OF SERVICE FSC#I0i CASE No. 01-30923-DM PROOOrOSERVICE 1, Kris Tsao Cachia, hereby declare:

I am employed in the City of San Francisco, County of San Francisco, California in the office of a member of the bar of this court at whose direction the following service was made. I am over the age of eighteen years and not a party to the within action. My business address is Cooley Godward LLP, One Maritime Plaza, 20th Floor, San Francisco, Califomia 94111-3580.

On August 31. 2002, 1 served the foregoing document(s) described as:

Cooley Godward LLP's Fourteenth Cover Sheet Application for Allowance and Payment of Interim Compensation and Reimbursement of Expenses for the Period July 1, 2002 - July 31, 2002 (Served with exhibits, except to the Court, which has explicitly requested no exhibits) on the interested parties in this action by placing a true copies thereof, on the above date, enclosed in sealed envelopes for service and prepared for processing in the manner indicated below, addressed as follows or as stated on the attached service list:

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deposited in a box or other facility regularly maintained by such express service carrier or delivered to an authorized courier or driver authorized by such express service carrier to receive documents, in an envelope or package designated by such express service carrier, with delivery fees paid or provided for.

XX (BY MESSENGER SERVICE) I am readily familiar with my office's practice for collection and processing of correspondence for hand delivery by messenger service.

Correspondence so collected and processed is picked up that same day by a messenger service known by this office based on past experience to be reliable, with instructions to be delivered by hand that same day to the offices of the addressee(s) listed above or on the attached service list.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct, and that this declaration was executed on August 31, 2002 at San Francisco, California

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