Enron Mail

From:john.sturn@enron.com
To:tracy.geaccone@enron.com
Subject:LaPlata DRA Application Cost Estimate
Cc:rich.jolly@enron.com, earl.chanley@enron.com, ben.asante@enron.com,gary.choquette@enron.com, kim.kouri@enron.com
Bcc:rich.jolly@enron.com, earl.chanley@enron.com, ben.asante@enron.com,gary.choquette@enron.com, kim.kouri@enron.com
Date:Fri, 14 Sep 2001 15:49:40 -0700 (PDT)

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