Subject: Red Rock Weekly Report
From: [email-masked]
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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: Fri, 9 Mar 2001 16:14:13 -0800 (PST)

1.	ACTIVITIES:

	a.	Completed site visit to all stations and evaluation of existing facilities

	b. Discussions with TW on critical items in order to finalize FERC application:

			Navajo Environmental has requested a Threatened & Endangered Species (T&E) and Archeological studies on stations 3 and 4.  Following completion of the survey (next week) The reviewing agency has 30 days to make determination.  Regulatory has determined that the FERC submittal is to be delayed until receipt of determination.

			ECS is preparing a proposal for electric compression at Station 1 to be delivered Tuesday 3/13.  This needs to be evaluated quickly if any interest exists.  This proposal should have a $5 mm decrease to project capital with increased operational flexibility.  FERC Project description will require amendment if interested.

			Turbine Compressor selection evaluation is underway with proposals received from Rolls Royce and GE/NP.  Project Team and GSS will complete recommendation by 3/16/01

			Project Environmental	 has scheduled meetings with Air Permit agencies and expect no issues.  Permit is expected in a 5 - 7 month time frame.

			Existing Noise Survey results have been received.  Recommendations for new facilities is being revised to accurately reflect Nearest Sensitive Receptor's (NSR) at individual stations.

			Plot Plans and Scope of Work are being revised based on site visit.  

c.		Change Requests and justifications are being prepared for review by marketing for items not in original Scope of Work.

			Station Scrubbers were originally estimated to be revised in place for increased flow and efficiency.  The current scrubbers cannot be modified and will be evaluated for flow increase.  Based on projected increases in flow (future planned expansion), a scrubber upgrade now would alliaviate higher pressure drops and additions to scrubbers later.  It is recommended that a new high efficiency scrubber be considered for immediate installation based on increased efficiency and arrest of liquid migration due to increased flows.  Installation under separate workorder would allow tie-ins to the pipeline to be made at our conviencence without large effect on pipeline thruput for 3 days.  Resultant Station tie-in would result in a 2 day outage of the station vs 5 days currently scheduled.  Estimated cost is $1 MM

			Electrical Generation was evaluated for capacity and reliability. Units at station are 40 years old and in need of renewal prior to increased loading due to gas cooler addition for new station.  Stations 1,2, and 4 will require augmentation to current electrical service.  Station 3 recent load test does not meet project reguirements.  Simplify tie-in to utilities and demarkation of old/new station facilities could be accomplished  by utilizing correctly sized new units.  This would become the weak link in reliable project operations should this not be approved.  Estimated cost is $1 MM.

			Station recycle valves were requested by planning and Gas control to be added to the Scope of Work to increase flexibility.  Turbines have limited turndown.  The spare horsepower based on turbine selection limits turndown further.  Estimated cost is $1 MM.

2.	OBJECTIVES FOR NEXT WEEK:

a.	await TW Marketing evaluation of electrical compression option for station 1

b.	Pre Award meeting with T/C vendor scheduled for bid and delivery clarification.  

c.	Recommend Turbine/Compressor vendor.

d.	Submit Change Requests to Marketing for approval

e.	Complete Engineering Scope of Work and solicit bids

3.	OLD ISSUES:

	none

4.	Areas of Concern:

Station Overhead rates were originally evaluated as 11% in the original estimates.  Sebsequent evaluations by TW (Jim Saunders) changed the rate to 2%.  Additional correspondence indicates a 2 to 4% overhead rate is adequate. 

Change Requests are being evaluated by the project team to make the "best overall" decision for the project and future operations.  Capital dollars are offset by tie-in downtime and simplicity.

Details of future expansion plans are required to evaluate impact to existing facilities and equipment selections.