William,

Attached is a revised PDVSA freight cost comparison for delivery to Empire versus delivery to ProCaribe. The analysis incorporates the data provided by Miguel Maltes that is shown below. This new analysis indicates that port costs are lower than previously assumed but vessel costs are higher. The net impact is virtually NO CHANGE. Please call me if you have any questions.

Paul

 
 -----Original Message-----
From: 	Maltes, Miguel  
Sent:	Friday, June 01, 2001 10:39 AM
To:	Y'Barbo, Paul
Subject:	Port Costs

Paul,

The information that follows was provided by Luis Ayala Col?n Sucrs., Inc, the PDVSA shipping agency in Puerto Rico.  These are actual port costs using the LPG/C Nelly Maersk which is the vessel servicing Empire Gas Company this year.  

The following are the port costs estimates (quite close):

	1.  Barrels discharge per trip at CORCO - 30,000 bbls., Tropigas - 24,000 bbls., Liquilux - 20,000 bbls.,  One trip is three 	     ports and another trip is two ports per month.

	2.  Discharge rates were given to us on an hourly basis and the agents took the average time per docking:  CORCO -                          	    48 hours or 625 bbls/hr., Tropigas - 28 hours or 857 bbls/hr., Liquilux - 20 hours or 1,000 bbls/hr., 

	3.  Port costs at: 

		Tallaboa $18,000
		CORCO $18,000
		Tropigas $13,000
		Liquilux $17,000

	    Liquilux port costs are per the Port of Ponce tariffs which are different from the Puerto Rico Ports Authority tariffs 
                    which apply to Tallaboa, Guayanilla and San Juan.  At San Juan (Tropigas) the tug boats cost less due to the fact 
                    that all tug boats companies are docked within the San Juan bay.

	4.  Port costs are not included in the vessel costs.  

	5.  Port costs includes dockage, wharfage, harbor pilots, tug boats, and harbor fees.  ProCaribe charges the 
                     dockage and warfage to the shipping agent.  All these costs are charged by the shipping agent to the owner of the  	     vessel, the owner of the vessel then charges the charter party.

	6.  Other costs:  Crudita - $4/barrel., Customs - $610.00 (Custom entry service $125, Custom duty deposit $485)., 
                     Laboratories - $135/test (3 - 5 per ship)., Inspectors - $0.1780 per long ton., Loss Control Agent - $0.35 per MT., 

	7.  Days steaming from Jose Venezuela to Puerto Rico and in between island ports:  

	              Jose to Puerto Rico (Ponce, Guayanilla and Tallaboa) - 36 hours
	              San Juan to Jose - 46 hours
	              CORCO to Ponce - 2 hours
	              Ponce to San Juan - 14 hours
       	              CORCO to San Juan - 14 hours

	     These timings are from dock to dock.

	8.  ProCaribe annual expenses:

	            Year				2000		2001 (1CE)
	            Payroll				$554M		$525M
	            O + M				$1,447M	$1,534M	
	            Depreciation			$475M		$492M
    	           Taxes other than income		$211M		$250M
        	           Other expenses			$160M		$86M

I hope this figures can help you in your model.  If you have any questions please call me.

Saludos