Enron Mail

From:john.sturn@enron.com
To:tracy.geaccone@enron.com
Subject:RE: 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:Mon, 17 Sep 2001 05:18:18 -0700 (PDT)

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