ML023080048

Declaration of Michael Schonherr in Support of Third Motion for Authorization to Incur Miscellaneous Implementation Expenses

ML023080048
Person / Time
Site:	Diablo Canyon
Issue date:	10/18/2002
From:	Schonherr M Howard, Rice, Nemerovski, Canady, Falk & Rabkin, 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: ML023080048 (4)

Text

1 JAMES L. LOPES (No. 63678)

JANET A. NEXON (No. 104747) 2 JULIE B. LANDAU (No. 162038) "

HOWARD, RICE, NEMEROVSKI, CANADY, 3 FALK & RABKIN A Professional Corporation 4 . Three Embarcadero Center,,7thFloor San Francisco, California 94111-4065 5 Telephone:, ',,415/434-1600 Facsimile: 415/217-5910 6' -"

Attorneys for Debtor and Debtor in Possession 7 PACIFIC GAS AND ELECTRIC COMPANY 8 - ° 9 UNITED STATES BANKRUPTCY-COURT 110 NORTHERN DISTRICT, OF CALIFORNIA" 11 . , SAN FRANCISCO DIVISION 12 In re -,]Case No. 01-30923,DM HCWVD 13 . PACIFIC GAS AND ELECTRIC Chapter 11 Case COMPANY, a California corporation, CNEq, 14, " Date:! No~vember 8, 2002

&RAr Debtor. Time: 1:30 p.m.

z - 15 ,-Place: . 235 Pine-Street, 22nd Floor Federal I.D. No. 94-0742640 San Francisco, California 16 17 .. - DECLARATION OF MICHAEL SCHONHERR 18 _. IN,SUPPORT OF, THIRD MOTION FOR AUTHORIZATION.TO INCUR MISCELLANEOUS IMPLEMENTATION EXPENSES 20 , . . . .-.

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DECLARATION OF MICHAEL SCHONHERR

1 I, Michael Schonherr, declare:

2 1. I am a Manager in the Building andLand Services Department for Pacific 3 Gas and Electric Company ("PG&E"), a position I have held since September 2001. I have 4 worked in various managerial capacities for the Building and Land Services Department for 5 over 14 years. I make this declaration in support of the Third Motion for Authorization to 6 Incur Miscellaneous Implementation Expenses (the "Motion"). Defined terms used herein 7 shall have the meanings set forth in the Motion. This Declaration is based on my personal 8 knowledge, except where indicated otherwise. If called as a witness, I could and would 9 testify competently to the facts stated herein.

10 2. PG&E previously obtained authority to incur land-related expenses (the 11 "Land Motion"). The Land Motion described expenses to be incurred in connection with 12 title review and analysis, and survey work, for a total estimated cost of $5,500,000. This HCZAM 13 work arises out of PG&E's large portfolio of real estate assets, including approximately RIM 14 250,000 acres of land, more than six million square feet of support service space (service

&PAMN A.*.*,. 15 centers, offices, and warehouses) and hundreds of real property leases (collectively, the 16 "Land"), along with thousands of related real property rights, including: rights-of-way and 17 easements, prescriptive rights, possessory interests, unrecorded rights and other land-r'elated 18 agreements, and associated maps and drawings (collectivel},, the "Land Rights"). This work 19 is necessary to prepare for the transfers of Land and Land Rights to the New Entities in 20 connection with the implementation of the Plan.

21 3. Since the Land Motion was filed, PG&E has identified additional land 22 related work that needs to be completed in advance of the Plan Effective Date, as described 23 below. These new tasks are similar in nature to the work described in the Land Motion and 24 will be completed by the same contractors identified in the Land Motion. However, PG&E 25 estimates that the completion of these new tasks could add up to $750,000 in additional.

26 expenses to be paid to the various contractors performing the work.

27 4. Additional Land and Land Rights Analysis and Reconciliation. This 28 category of work includes title work in connection with the review, analysis and DECLARATION OF MICHAEL SCHONHERR I reconciliation of all Land Rights, including field verification of information, assignment of 2- the Land and Land Rights to the New Entities, and analyzing new and modified rights to be 3: acquired. Contractors performing this work are as follows: .

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• EDB Data Resources

• PhillipLongo 5 *. Charles McClue -,-',

• ParagonPartners,Ltd.

6 . Kenneth Sorensen.

• Willbanks Resources Corporation

5. The additional work arises out of the transfer of gas transmission facilities to GTrans. In connection with the title review and analysis associated with these gas "transmissionrights, it is necessary to analyze and reconcile data delineated on approximately 10, 12,000 gas system maps. Additional title review and analysis is also.necessary in connection with the distribution feeder mains (i.e., local gas transmission facilities) to be transferred to 12.

HOWARD GTrans. The foregoing projects have become necessary since the previous Land Motion was 13F

. RKEa filed, based on the further development of the asset transfer process and the identification of

_____ specific asset transfers to take place between PG&E and GTrans.

6. Additional Land Surveying. This category of work includes land surveys, 16 preparation of the deeds and maps related to the possible subdivision, lot line adjustments, 17 , .

and/or transfer of fee properties to the New Entities, work necessary to ensure compliance 18 with local rules and regulations, and preparation of easement reservations and new easement 19 grants. The contractor performing this work is Towill, Inc.

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7. The additional survey work arises out of communications and 21 telecommunications-related transfers that will occur as part of Plan implementation.' PG&E 22 requires Towill's services in preparing exhibit maps and legal descriptions in connection 23 with the following agreements to be executed in connection with the Plan: (i) the Master 24 Communications Easement Agreement, which will provide for easements by and between 25 PG&E and each of the New Entities related to the ongoing maintenance and operation of 26 communications facilities; this agreement will allow PG&E and each of the New Entities to 27 have the mutual benefit of existing communications facilities that may be located on 28 DECLARATIONOF MICHAEL SCHONHERR 1 property owned by PG&E, for example,, following the'Plan Effective Date; and (ii) the 2 Telecommunications Services Agreement, which will provide for telecommunications 3 services to be provided by ETrans to PG&E and the other New' Entities, including the 4 transfer of certain Land Rights related to telecommunications facilities.

5 8. The foregoing survey projects have become necessary since the previous 6 Land Motion was filed, based on the further development of the asset transfer process with 7 respect to communications and telecommunications facilitie§ that will bd part of the Land 8 and Land Rights to be transferred by the Plan EffectiveDate.

9 9. PG&E's standard contractual provisions in place with the land-related 10 contractors described above do not guarantee future work or any minimum amount of 11 revenue. PG&E also maintains the right to terminate the work at any time without cause, in 12 which case PG&E is liable. only for work performed to the date of termination plus costs HOWARD 13 reasonably incurred by the consultant in terminating. any work in progress.

RIMepV -'

CrAuv 14 I declare under penalty of perjury under the laws of the United States of America" 15 that the foregoing is true and correct and that this Declaration is executed this 18th day of 16 October, 2002, at San Fiahcisco, California.., .

17, "18 "  ; "- i ICHA S.,HONHERR 9wD 101702/I-141i9905/1036523/41 .

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- DECLARATION OF MICHAEL SCHONHERR