DRA Pigging

A conf. call was held Thursday afternoon to further discuss the pigging tim=
eline of the San Juan Lateral. Obviously there is concern with regards to =
delaying the pigging project and how that might relate to line eff and ther=
efore capacity impacts. A request was made to re-apply the DRA asap or by =
April. It seems that after the last pig run the line eff. held it's own fo=
r two weeks and then started to drop off significantly. The major concern =
is, will we be able to continually bring the eff back to acceptable levels =
with dry pigging? An agreement was reached to postpone any pigging efforts=
until May or June while in the mean time we increase our pigging frequency=
of the lateral and continue to monitor eff. results and cycle times. In o=
ther words when we pig, how long before the eff. starts to drop significant=
ly. Although it may be a long shot, if we can insure that by pigging on a =
two or three week cycle the eff. of the lateral can be maintained to accept=
able levels we may be able to postpone the DRA application until after Tarr=
iff months (July & Aug.). Once through the hot tariff months we have an op=
portunity to make it through the remainder of the year. $320,000 is on the=
table for this project and that's why we really need to take whatever step=
s are necessary to delay as long as we do not jeopardize throughput....

Rick and I would be appreciate hearing your view points or concerns with th=
is plan but, in the mean time the following actions need to be taken:

1) Send a sample of liquids and/or solids from the last pig run to Ben Asa=
nte for analysis. (Gallup Team)

2) Send a sample of solids from the inlet of Bloomfield to Ben Asante for =
analysis. (San Juan Team) This sample may have to come from a seal gas fi=
lter or fuel gas filter or??? Let me know if there are problems collecting=
a sample in the next few days and we will put our heads togeather)

3) Start pigging on a two week cycle. Darryl S. agreed on the conf. call =
to take whatever steps are necessary to work with everyone on the pigging. =
Please do not exceed 15 days between pig runs. (Gallup and San Juan Teams=
)

4) Collect valve data on the same cylcle time as the pig runs whenever man=
power and/or work loads permit. (Gallup and San Juan Teams)

5) Collect a sample of the liquids in the tank at Gallup and send in to Ti=
m Sweeny for analysis. (Will you need to stir the tank before this is done=
?) The reason for this step is we may have the opportunity to re-use the o=
ld DRA. (Gallup Team) Rick, you may want to contact Tim and insure he can=
run this analysis for us. (713-569-7973) By the way, how many gallons do=
we have in the tank at Gallup? We will need 4000 to 5000 for a reapplicat=
ion...

6) If the sample of the old DRA at Gallup determines that the solution is =
not fit for furhter use, work with Larry Campbell on disposing and insure t=
he tank is available for a May/June timeframe of re-applying the DRA. (Gal=
lup Team)

7) Gear up for an May/June timeframe to reapply the DRA if necessary. (Ga=
llup and San Juan Teams) Get togeather and pick two or three dates that wi=
ll work for you all and let Rick and I know.

8) Currently all the project dollars reside in the San Juan Team's plan. =
Advisors need to get with Vera and determine what distribution needs to mad=
e of those dollars to the Gallup Teams plan to insure overages are covered.=
(Rick, Tiny and Vera) =20