Patrick Wood III
                                                    Chairman of FERC


The Federal Energy Regulatory Commission (FERC) is the agency that will decide if Fall River / Somerset
are to host an LNG terminal. The Chairman of FERC, Patrick Wood III, plays a key role in the siting of this
and other LNG facilities. To understand Mr. Wood we must first look at his background and how he has
handled his chairmanship at FERC. As you read the following information ask yourself this question:
Do I
believe that FERC and Chairman Pat Wood III will protect the safety of my family and ignore the
wishes of the big and powerful energy companies and their attorneys?


Mr. Wood has a B.S. in Civil Engineering and a J.D. from Harvard Law School. He worked as an engineer for
ARCO Indonesia and then as an attorney for the Baker Botts law firm.
Yes, this is the same law firm
representing Weaver’s Cove Energy and HESS LNG! For more information on Baker Botts see “Follow
the Money” on this web site.


In 1994, Kenneth Lay of the infamous ENRON Corporation, asked then Governor George Bush of Texas to
name Mr. Wood to the Texas Public Utility Commission. Governor Bush followed through with the request.
Kenneth Lay said that Mr. Wood had a new vision, and that new vision was his desire to impose
deregulation saying that competition can do better than regulation in delivering customer benefits.

In 2000 Kenneth Lay then commended Pat Wood III to head up FERC as its Chairman. President Bush once
again followed through and nominated Mr. Wood to become chairman of the very powerful and influential
Federal Regulatory Commission.

California Energy Crisis: How Patrick Wood III treats other citizens of this nation.

During the years of 2000 and 2001 California and the West Coast went through an energy deregulation
nightmare. Energy prices skyrocketed and thousands of workers lost their jobs due to price increases. The
nation was told that California had itself to blame since they had not prepared for the increase in electrical
demand.

Today we are finding out that what we were not told the whole story. Several companies, ENRON being one,
actually manipulated the energy market and gouged the rate payers millions if not billions of dollars. FERC,
under the leadership of Patrick Wood III, had the power to block unreasonable rates but allowed energy
prices to soar 50 times normal levels.

During this time ENRON energy traders were illegally manipulating the market. Taped conversations
between ENRON employees have now surfaced.

ENRON Trader: “If the line’s not congested then I just look if I can congest it.”
ENRON Trader 2: “Right, right.”
Enron Trader: “So, like those hours, if you can congest it, that’s a money-maker no matter what, cause you’
re not losin any money to move it down that line.”

Another money making scheme for ENRON was to purchase power in California and send the electric to
Oregon. As this was done a utility company would be paid $5 per megawatt to disguise the origin of the
power. This same electrical power would then be sold back to California on an emergency “Out of Market”
basis for $750 a megawatt hour. This quick scheme netted $222,678.00 for the deal.

ENRON traders had nicknames for their schemes such as “Ricochet, Death Star, Ping Pong, and
Sidewinder”.

A public utility commission on the West Coast, Snohomish County Public Utility District, has already identified
$6.3 million in unjust ENRON profits and they estimate it could be at least $1.1 billion. Where was FERC and
Pat Wood III when all this was taking place? Where are they now?

Senator Maria Cantwell of Washington said, “It will be next to impossible for the ratepayers of the West to
get the justice they deserve if FERC continues to either ignore or suppress evidence demonstrating ENRON’
s intent to manipulate markets and gouge consumers”.

What kind of protection will the citizens of Fall River, Somerset, Swansea, etc. receive from FERC when on
the West coast they have been slow to protect the consumers? It is a well known fact that both Kenneth Lay
and his wife Linda donated 100’s of thousands of dollars to George Bush’s campaign and to a political party.
Do donations of this magnitude carry any weight?

A scathing letter was recently sent to Patrick Wood III from Douglas Heller, Executive Director, Foundation
for Taxpayers and Consumer Rights. Following are some excerpts from the letter:


We have received a copy of your June 7, 2004 letter to Senator Barbara Boxer and are appalled at your indifference to both
already established facts surrounding Enron’s gaming of California ratepayers and to the suffering of Californians due to
market manipulations perpetrated by companies that you regulate.”


“Most disturbing is the misstatement of conclusions already reached by your agency and that you show far more empathy for
the discredited positions of Ken Lay, who first recommended you as a utility commissioner to then-Governor Bush, than for
Californians. Despite the revelation by CBS News of taped conversations among ENRON employees revealing overtly
criminal behavior by Lay’s employees (and explicit acknowledgement that Mr. Lay himself was in on the schemes), you have
once again dismissed evidence of one of the largest crimes against consumers in our nation’s history.”


The letter goes onto to quote certain statements made by Mr. Wood and then counters those statements.

Wood: “the Commission found no evidence that there was market manipulation. . .”

Heller: “In fact, that conclusion contradicts the findings of your own agency. According to FERC’s “Final
Report on Price Manipulation in Western Markets” of March 26, 2003 the manipulated spot market prices
“significantly influenced” the energy prices agreed to in longer term contracts”

Here we have a FERC report saying one thing and then the Chairman, Pat Wood III, saying something else.
This is similar to the recent ABS LNG report commissioned by FERC. It had some devastating numbers
when it comes to the destruction an LNG spill could produce. Recently, Gordon Shearer of Weaver’s Cove,
said those numbers have been reduced. Do we really believe FERC and the new totals? Do we really think
that FERC will protect us?

The letter goes on for two pages and ends with this:

“There is no excuse for your unwillingness to confront the abhorrent economic crimes that gave way to the deregulation
disaster of 2000 and 2001. It is time that you stand up for consumers.”

This hands off approach by FERC and Pat Wood III is very similar to what is taking place in our backyard.
Rich McGuire of FERC told a crowd in Tiverton that the Weaver’s Cove project is not FERC’s project. This is
not true, in reality Weaver’s Cove and all other LNG projects are really FERC’s projects. FERC makes the
final decisions and continues to tell the states that they are the sole power when making the decision on
locating LNG facilities.

In California Michael Peevey, President of the California Public Utilities Commission (PUC) has been telling
FERC that they, the PUC, want a share in the jurisdiction when it comes to the safety and siting of an LNG
terminal in the state. FERC is trying to assert exclusive jurisdiction and they are attempting to preclude the
PUC and other state agencies from having any authority in siting the facilities.

After reading the above information do you trust FERC, Pat Wood III and the other Commissioners to protect
your safety and interest?

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