Message-ID: <11026978.1075860880807.JavaMail.evans@thyme> Date: Tue, 15 May 2001 21:00:33 -0700 (PDT) From: l..johnson@enron.com To: ben.asante@enron.com, e-mail <.max@enron.com>, e-mail <.will@enron.com>, earl.chanley@enron.com, e-mail <.michael@enron.com>, perry.frazier@enron.com, morgan.gottsponer@enron.com, kevin.hyatt@enron.com, steven.january@enron.com, darrell.schoolcraft@enron.com, e-mail <.peter@enron.com> Subject: TW - SJ Lateral MAOP Increase Cc: steven.harris@enron.com, shelley.corman@enron.com, l..johnson@enron.com, john.keller@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: steven.harris@enron.com, shelley.corman@enron.com, l..johnson@enron.com, john.keller@enron.com X-From: Johnson, David L. X-To: Asante, Ben , Max Brown (E-mail) , Will Burks (E-mail) , Chanley, Earl , Michael Crump (E-mail) , Frazier, Perry , Gottsponer, Morgan , Hyatt, Kevin , January, Steven , Schoolcraft, Darrell , Peter Stark (E-mail) X-cc: Harris, Steven , Corman, Shelley , Johnson, David L. , Keller, John X-bcc: X-Folder: \Kevin_Hyatt_Mar2002\Hyatt, Kevin\Projects X-Origin: Hyatt-K X-FileName: khyatt (Non-Privileged).pst I have tried to summarize where I think we are at this time. Is anything else needed to move ahead in developing a recommendation for Phil? If so, please let the rest of the group know immediately. If not, can we tune up the estimates and run the other numbers by early next week? I'll be back in the office Thursday. Thanks! Dave SAN JUAN LATERAL Capacity increase does not require increased takeaway capacity in CA as there is no mainline increase - we substitute San Juan gas for Permian gas Has a relatively high probability of being accepted by OPS (my estimate - 90%) MAOP Increases - 1250 (75% SMYS) from Bloomfield to Bisti 1330 (80% SMYS) from Bisti to Gallup Advantica study, report and presentation - some portion of the $250,000 total (est. $75,000) Minor, if any, additional inspection & testing Compression additions Either 4,000 hp at Bloomfield for 55 MMcf/d - $10 million Or 10,000 hp at Bisti for 90 MMcf/d - $15 million TOTAL (Bisti scenario) 90 MMcf/d $15.1 million ($168,000/MMcf/d) MAIN LINE Capacity increase does require increased takeaway capacity in CA Has a more moderate probability of being accepted by OPS (my estimate - 60%) MAOP Increase - 1100 (79% SMYS) from Station 5 to Needles Advantica study, report and presentation - balance of the $250,000 Inspection, including smart pigging, testing, material evaluation, valve replacement and High Consequence Area pipe replacement - $33 million Station 1 to Needles launcher and receiver $ 1 million Compression additions Red Rock 150 MMcf/d $93 million (works without the MAOP upgrade) 10,000 hp each at Stations 1-4 250 MMcf/d $60 million (requires the MAOP upgrade) Total 400 MMcf/d $153 million TOTAL (Red Rock + 1-4) 400 MMcf/d $185 million ($463,000/MMcf/d) TOTAL (Red Rock only) 150 MMcf/d $127 million ($847,000/MMcf/d) TOTAL (1-4 only) 250 MMcf/d $ 94 million ($376,000/MMcf/d) These summarize the system optimization studies. We would like Ben, Morgan, Perry Frazier, Earl Chanley and Kevin Hyatt to critically evaluate these scenarios, determine the economics, and provide the team and Phil with an overall feasibility evaluation. If favorable, we can release Advantica to begin work and we can brief OPS on the overall plan and direction.