Enron Mail

From:drew.fossum@enron.com
To:ajc@infohwy.com
Subject:Re: Salt storage project
Cc:morgan.gottsponer@enron.com, kent.miller@enron.com
Bcc:morgan.gottsponer@enron.com, kent.miller@enron.com
Date:Thu, 5 Oct 2000 07:41:00 -0700 (PDT)

Great to hear from you! I'll forward this to the smart guys and see if they
have any interest. Let me know which pipes you'll interconnect with and
we'll have a better sense of who else in the organization might be
interested. Kent and Morgan, when we get Tony's response on the
interconnects, can you think it through from Florida's perspective also?
Thanks. DF




"Tony Clark" <ajc@infohwy.com< on 10/05/2000 09:47:42 AM
To: <dfossum@enron.com<
cc:

Subject: Salt storage project



Hello Mr. Fossum, I thought I would drop you a line to say hello and let you
know we are still alive.? We are currently in the process of securing the
land and minerals to build a high deliverability storage project in Texas.
In several weeks we will be in a position to present the project to you if
there is any interest. SGR?will build the facility for a prospective buyer
and can arrange financing of the project to accommodate a buyers needs.?
Preliminary project specs are as follows:
?

?Two 8 bcf caverns total working gas capacity of 16 bcf facility.(Designed
to accommodate expansion while in operation)
?Bi-directional access to 4 interstate pipelines and 3 intrastate pipelines.
1.2 to 1.6 bcfpd?withdrawal and 400 to 600 mmcfpd of injection.
The facility will be designed to meet optimum flexibility to meet commercial
dispatch requirements.
The facility can commence commercial operations by fourth qtr 2002.
Preliminary costs estimates to build? $8 million per bcf of capacity. Recent
comps for storage facility sales transactions have sold for?$17 to $26
million per bcf of capacity.

?Let us know.
?
Take Care
T. Clark