Message-ID: <3812002.1075860883901.JavaMail.evans@thyme> Date: Wed, 26 Sep 2001 08:03:45 -0700 (PDT) From: maurice.gilbert@enron.com To: kevin.hyatt@enron.com Subject: RE: Salt storage Cc: morgan.gottsponer@enron.com, ron.matthews@enron.com, dennis.alters@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: morgan.gottsponer@enron.com, ron.matthews@enron.com, dennis.alters@enron.com X-From: Gilbert, Maurice X-To: Hyatt, Kevin X-cc: Gottsponer, Morgan , Matthews, Ron , Alters, Dennis X-bcc: X-Folder: \Kevin_Hyatt_Mar2002\Hyatt, Kevin\Projects\Sun Devil X-Origin: Hyatt-K X-FileName: khyatt (Non-Privileged).pst Kevin: Thanks for the information and 5000 feet of halite if it is one uniform bed is certainly similar to Gulf Coast salt domal opportunities. If you decide to move forward with this effort, issues of water can be evaluated based upon Arizona rules and regulations for fresh water use and salt water disposal. I have spoken with Morgan regarding a Fall 2001 Meeting, 7-10 October, 2001, Albuquerque, NM, USA of the Solution Mining Research Institute which might have some information regarding developing salt storage in Arizona. I would certainly like to support your efforts as you move forward. Maurice -----Original Message----- From: Hyatt, Kevin Sent: Wednesday, September 26, 2001 8:54 AM To: Gilbert, Maurice Cc: Alters, Dennis; Gadd, Eric Subject: RE: Salt storage Below are the answers to your questions regarding the proposed Crystal Gas salt cavern storage for the west side of Phoenix. After you have reviewed the answers, I would be interested to hear your opinion / comments regarding the feasibility of the storage facility. If the cavern does not get built, we will likely change some of our plans regarding the Sun Devil pipeline project. thanks for your input kh -----Original Message----- From: Gilbert, Maurice Sent: Friday, August 31, 2001 4:58 PM To: Alters, Dennis Cc: Hyatt, Kevin; Gottsponer, Morgan Subject: Salt storage Dennis: some questions regarding salt storage: Is the salt layer, bedded or domal? [Hyatt, Kevin] Bedded What is the thickness of the salt layer at the development site? [Hyatt, Kevin] over 5000 feet What is the chemistry of the salt, i.e. is the salt halite, gypsum/anhydrite calcium sulfate), sodium sulfate [Hyatt, Kevin] 95 -99% halite Has any drilling been done at the site, coring, rock mechanics evaluation? [Hyatt, Kevin] Are any geological reports available for the site? [Hyatt, Kevin] Test wells have been drilled. I'm not confident I can get report copies. What restrictions exist (rules and regulations) regarding storage development in Arizona? [Hyatt, Kevin] water & water disposal What is the availability for water to solution mine the a cavern? [Hyatt, Kevin] water is available, disposal of the brine solution will be an issue Just a few thoughts, I apologize that I cannot be with you on Wed. and if I need to travel to Arizona to meet with technical staff, I certainly can make arrangements after my trip to Wichita next week. Regards, Maurice [Hyatt, Kevin] The storage cavern will be built in 3 phases, 3.3 Bcf working gas per phase, 330mmcfd withdrawal, 165mmcfd injection 30 day / 12 turn capability. Compression will likely be 8-9000 hp per cavern (electric units). Leaching time will be 1-2 years. Brine disposal test scheduled for November. There is a Morton Salt plant adjacent to the cavern site. Morton will likely take some of the brine, but not enough (too much salt will depress the maket price for the commodity). First cavern to be available late 2004 / early 2005, 2nd cavern late 2006.