Re: Gallup Mods

I agree with Danny's email that the key timetable issue for the incremental
10,000/day appears to be lead time on fabrication and delivery of the
15,000hp motor. It was my understanding that the long lead time items were
going to be ordered shortly (if they haven't been already) and that we'd take
the financial risk. If that is our approach, the regulatory approvals won't
be the critical path item they usually are. I've reviewed the FERC
application and we should be able to file it shortly, perhaps with a request
for temporary emergency certification if we decide that would expedite
things. Additionally, we are looking at transactions that would allow us to
avoid physically hauling the 20,000/day of fuel down the San Juan lateral.
If we could unload our fuel requirement from the San Juan, the additional
horsepower at Gallup might provide some additional flexibility or additional
capacity. I'll talk to Steve today to make sure we are doing everything
possible to expedite these efforts. DF

Stanley Horton
12/19/2000 07:25 AM
To: Danny McCarty/ET&S@Enron .
cc: Drew Fossum/ET&S/Enron@ENRON, Phil Lowry/OTS/Enron@ENRON

Subject: Re: Gallup Mods

I believe that Phil Lowry is looking at ways to get some additional capacity
out of the system as well. We want to expedite these efforts too.. I would
like to see an application filed filed by January 31st to get 30 to 50
MMCF/D.

Steve Harris and Phil Lowry should have the lead to get this done. I am
willing to construct at risk but want to see the financials as well.