Subject: San Juan Lateral 10 MM/d Expansion
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked]
Date: Mon, 28 Jan 2002 12:29:25 -0800 (PST)

I'm getting old!  Wondered why I couldn't find this is my sent folder.  Still in my draft folder.  Please review ASAP.

This will be sent to Steve Harris, Kim Watson, and Lorraine Lindberg once approved by the group.

Planning reviewed historical data and discussed with Gas Control this possibility of increasing the San Juan lateral south of Bloomfield by 10,000 MMbtu/d.  This would be accomplished by adding inlet air cooling to units #1 & 2 to reduce the ambient air to the turbine's combustion cycle which would increase available horsepower during the summer months.  This would allow TW to sell an additional 10,000 MMbtu/d year round.  However, there are a few issues to be addressed prior to Marketing making the decision of selling the 10,000 MMbtu/d on a long term firm basis.

1. This concept will only work during the hot months of the year (about 150 days).  Currently 10,000 MMbtu/d of LFT and/or IT is being sold during the cold months but the 
    inlet air coolers would allow for the capacity to be sold long term.
2. The additional volume through Bloomfield must come from the Hub.
3. There is currently an operational problem with the system efficiency from La Plata to the Blanco Hub which could have an effect on the total lateral capacity south of 
    Bloomfield.  A pigging project is scheduled for 2002 but may not be into operation before the inlet air coolers are in service.
4. Possibly would need to limit La Maquina flows during the overlap window from when the coolers are placed in service and the pigging project is complete (June - Aug.).

To reinforce the effect of the inlet air coolers, the conditions at Bloomfield now would be similar to this summer with the inlet air coolers with cooler ambient temperatures.  TW currently sells 10 MMbtu/d plus of LFT and/or IT.

The above is intended to give Marketing the necessary information to make a management decision to either approve or reject the proposed project.  Please inform Planning of your decision and we will release the appropriate group to proceed with the design and installation of the inlet air coolers.  A detailed cost estimate is being prepared along with the timing to install.  This information will be transmitted to the appropriate business units upon receipt and approval by Planning.

Ron Matthews