Subject: Sun Devil Fuel
From: [email-masked]
To: [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Wed, 7 Nov 2001 14:06:19 -0800 (PST)

Ben and Ron--
	Following up on our meeting today, I need to know what my negotiation parameters are regarding the fuel charge for our Sun Devil Project.  How much (if any) can I discount the fuel charges for Sun Devil shippers, based on the following assumptions, 

Project cost $911mm
Include all compression adds/mods from Doug Cebryk engineering scope dated 9/28/01
Incremental Volume MMBtu/d: 780,000 San Juan, 810,000 Mainline, 500,000 to Phoenix, 310,000 to Cal Border
Of 1,520,000 total capacity to Cal Border and 500,000 to Phoenix, assume 390,000 has to come from East of Thoreau
Assume load factors in 10% increments from 50% west flow up to 100%.
Assume fuel collection of 5% from shippers

In theory, we all agreed in the meeting that with the additional loop line installed for Sun Devil, and the new compressors at stations 1-4 are more efficient, then the actual fuel use should be less.  Please verify this for the load factors above.  If we can keep the same net fuel retainage, but collect less because our actual fuel use is less, then this is a win-win for both TW and the Sun Devil shippers.

Is an answer possible by Tuesday 11/13?

thanks
kh
x35559