Subject: La Plata to Bloomfield Drag Reducing Agent Application Evaluation - Estimated Costs
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Tue, 20 Nov 2001 11:57:18 -0800 (PST)

I also wanted to pass on to you the estimated costs that were used:

Below are the rough cost estimates to apply drag reducing agent to the LaPlata to Bloomfield line.

	Facility modifications			$1,665,000

	Cleaning & application			   $165,000

	Re-application every 6 months		   $165,000

The facility modifications include a launcher at LaPlata, receiver at Bloomfield and a filter separator at the El Paso Blanco delivery.  The cleaning & application and re-applications costs include cleaning pig runs with methanol and surfactant as well costs for the actual DRA application.

For analyzing sensitivities, all costs are +/- 30%.

The re-application time period is also uncertain.  The probable window would be to re-apply as often as every three months and as infrequently as every 12 months.

John