Message-ID: <30989349.1075852800065.JavaMail.evans@thyme> Date: Wed, 3 Oct 2001 18:38:26 -0700 (PDT) From: chris.dorland@enron.com To: mike.grigsby@enron.com Subject: RE: Shut - In costs Cc: keith.holst@enron.com, frank.ermis@enron.com, jay.reitmeyer@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: keith.holst@enron.com, frank.ermis@enron.com, jay.reitmeyer@enron.com X-From: Dorland, Chris X-To: Grigsby, Mike X-cc: Holst, Keith , Ermis, Frank , Reitmeyer, Jay X-bcc: X-Folder: \KHOLST (Non-Privileged)\Deleted Items X-Origin: Holst-K X-FileName: KHOLST (Non-Privileged).pst Grigs, I talked to Lambie (our resident produciton and reserve expert) about this and he thought it was highly unlikely that producers would shut in eastern rocks production for a couple of reasons. Apparently, if you shut in coal bed methane production there is a serious risk that the well will "water out" either ruining the well or causing 6 months to a year of production delays. Also, it seem logistically unlikely due to the small production volumes associated with each individual well (100-500 mm/d). In Chris's opinion coal bed methane would be some of the last production we would ever see shut in. Hope this helps. Let me know if you learn anything further. Chris -----Original Message----- From: Grigsby, Mike Sent: Tuesday, October 02, 2001 3:30 PM To: Dorland, Chris; Cowan, Mike Subject: Shut - In costs I am guessing that you guys have market knowledge of shut-in costs for western Canada. We have heard all of the typical low price rumors of Rockies shut-ins at a dollar. I am going to put Steve South and Paul Lucci in charge of presenting a shut-in analysis by field in the Rockies and san juan. What do I need to have these guys look at in terms of variable costs. Is it as simple as gathering and processing? Let me know your thoughts. Thanks, Grigsby