Subject: TW-West Texas Expansion Level "A" release cost estimate 4/5/2001
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Thu, 5 Apr 2001 09:24:06 -0700 (PDT)

This is in response to your request of 3-26-2001 regarding the expansion of TW pipeline system in West Texas.
Current Facility Capacity Summary
Compression capacity at WT-1= 420 mmcf/d
Compression capacity at WT-2= 550 mmcf/d
Pipeline capacity from WT-1 to Station-9= 550 mmcf/d
Pipeline capacity from WT-2 to WT-1 flowing north= 250 mmcf/d ( when WT-1 operates at 950#).
Pipeline/ compression capacity at WT-2 flowing south 550 mmcf/d

Two scenarios have been considered in order to increase the capacity of WT-1 and WT-2 from 550
to 750 mmc/fd flowing north to Station  #9 and west to Station #8.

Scenario-1:
The following assumptions have been made for this scenario:
 
Gas supply availability                         
WT-1 	307 mmcf/d ( i.e.Atoka=150, Maljamar=45, GPM Zia=30 mmf/d 
                                                                                and Crawford =82 mmcf/d).                              
Elpaso				90 mmcf/d 
NGPL Eddy 				40 mmcf/d
From WT-2 to WT-1 	          250 mmcf/d 									
Duke (WT-1 discharge)	            63 mmcf/d
Total				       750 mmc/d
Criteria used for hydraulic modeling were:
Suction pressure at WT-1          =615   psig
Zia pressure                                 =650   psig.
WT-1 discharge                           =950   psig.
WT-2 discharge                           =1030 psig.
Suction pressure at Station-9   =750   psig.
Station-8 Ps=725 psig and Pd  =1000 psig

Facility requirements and the associated costs ( level "A" release 30%?):
Loop the existing 24" (discharge side of WT-1) with 18.50 mi of 36". 	$20,000,000		
Add a 4000 hp booster unit on 36"/24" 23 miles north of WT-1. 		$5,000,000
Add a 4000 hp at Station-8 (current capa=590 mmcf/d). 			$5,000,000  

Total cost of scenario-1						         $30,000,000

Scenario-2:
Assumptions:
Available supply at WT-1			307 mmcf/d
NNG-Waha area to WT-2			443 mmcf/d 
Total					          750 mmcf/d	

Criteria used for hydraulic modeling were:
Suction pressure at WT-2 		= 710   psig.
NNG-Waha pressure 		= 870   psig.
Discharge pressure at WT-2 	= 1032 psig
Suction pressure at WT-1 		= 615   psig
Discharge pressure at WT-1 	= 900   psig
Suction pressure at Station-9 	= 735   psig
Sation-8 Ps=725 and Pd 		=1000  psig

Facility requirements and the associated costs ( level "A" release ?30%):

10 miles of 24" looped with 12"-Halley lateral and				$     800,000 
 interconnect facilities at TW/NNG Halley interconnect.	 			
10.44 miles of 30" looped with 24" discharge side of WT-2. 			$   9,000,000
Add a 6000 hp booster unit on 36"/24" 23 north of WT-1. 			$   7,500,000
18.50 miles of 36" looped with the existing 24" (WT-1 discharge)		$ 20,000,000
Add 4000 hp at Station-8 (current capa= 590 mmcf/d) 			$   5,000,000	

Total cost of scenario-2						        $42,300,000

Note:  This is a preliminary scope and cost estimate and no discussions on the facility specs were
           made to other internal or external units at this time.              

If you have any questions please call me at #33158.