Enron Mail

From:james.centilli@enron.com
To:tracy.geaccone@enron.com
Subject:RE: LaPlata DRA Application Cost Estimate
Cc:
Bcc:
Date:Wed, 17 Oct 2001 07:04:09 -0700 (PDT)

The project can not be justified, if you have the capital cost of the pigging facilities. On a stand alone basis without the pigging facilities we can justify the project.

James

-----Original Message-----
From: Geaccone, Tracy
Sent: Monday, October 15, 2001 3:48 PM
To: Centilli, James
Subject: FW: LaPlata DRA Application Cost Estimate

Have you had a chance to run this? If not, when do you think you will?

Thanks

-----Original Message-----
From: Sturn, John
Sent: Monday, October 15, 2001 2:24 PM
To: Geaccone, Tracy
Subject: RE: LaPlata DRA Application Cost Estimate

Tracy,

Have you made any progress on the economic analysis?

Thanks,


John

---------------------- Forwarded by John Sturn/ET&S/Enron on 10/15/2001 02:22 PM ---------------------------
From: John Sturn on 09/17/2001 07:18 AM
To: Tracy Geaccone/ENRON@enronXgate
cc: Rich Jolly/ET&S/Enron@ENRON, Earl Chanley/ENRON@enronXgate, Ben Asante/ENRON@enronXgate, Gary Choquette/ENRON@enronXgate, Kim Kouri/ENRON@enronXgate

Subject: RE: LaPlata DRA Application Cost Estimate << OLE Object: StdOleLink <<

Tracy,

10,000 MMBTU/D of incremental capacity from LaPlata to Gallup.

This is the working assumption from our initial conference call. Like the +/- 30% cost figures below, it may vary with further evaluation, but I suggest it be used for this initial analysis.

Thanks,


John



From: Tracy Geaccone/ENRON@enronXgate on 09/16/2001 01:25 PM
To: John Sturn/ET&S/Enron@ENRON
cc: Rich Jolly/ET&S/Enron@ENRON, Earl Chanley/ENRON@enronXgate, Ben Asante/ENRON@enronXgate, Gary Choquette/ENRON@enronXgate, Kim Kouri/ENRON@enronXgate

Subject: RE: LaPlata DRA Application Cost Estimate

How much additional capacity/volumes will I get?

-----Original Message-----
From: Sturn, John
Sent: Friday, September 14, 2001 5:50 PM
To: Geaccone, Tracy
Cc: Jolly, Rich; Chanley, Earl; Asante, Ben; Choquette, Gary; Kouri, Kim
Subject: LaPlata DRA Application Cost Estimate

Tracy,

Below are the rough cost estimates to apply drag reducing agent to the LaPlata to Bloomfield line.

Facility modifications $1,665,000

Cleaning & application $165,000

Re-application every 6 months $165,000


The facility modifications include a launcher at LaPlata, receiver at Bloomfield and a filter separator at the El Paso Blanco delivery. The cleaning & application and re-applications costs include cleaning pig runs with methanol and surfactant as well costs for the actual DRA application.

For analyzing sensitivities, all costs are +/- 30%. The re-application time period is also uncertain. You may want to look at the economics of re-apply as often as every three months and as infrequently as every 12 months.

Please let me know of anything else you need.

Thanks,


John