Subject: Re: Salt storage project
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Thu, 5 Oct 2000 07:41:00 -0700 (PDT)

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" <[email-masked]> on 10/05/2000 09:47:42 AM
To: <[email-masked]>
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