Message-ID: <6858583.1075842504927.JavaMail.evans@thyme> Date: Thu, 5 Oct 2000 07:41:00 -0700 (PDT) From: drew.fossum@enron.com To: ajc@infohwy.com Subject: Re: Salt storage project Cc: morgan.gottsponer@enron.com, kent.miller@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit Bcc: morgan.gottsponer@enron.com, kent.miller@enron.com X-From: Drew Fossum X-To: "Tony Clark" X-cc: Morgan Gottsponer, Kent Miller X-bcc: X-Folder: \Drew_Fossum_Dec2000_June2001_1\Notes Folders\Sent X-Origin: FOSSUM-D X-FileName: dfossum.nsf 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" on 10/05/2000 09:47:42 AM To: 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