Gas Control looks at the 3 receipt/delivery points we have with Viking and net everything out at Pierze. Dependant on pressures on both sides at the Pierze point determines whether we have to run. We try to batch if we can on our side if it fits our operation. We may not always be able to do it if it does not work for them. In some ways there maybe a trade off between running Alex or Pierze.  Now that we are getting into winter months  we are going to want to keep our pressure up higher for Benson,  There may have been times that we may have lost a opportunity to not run Pierze, but sometime it may look like a opportunity but all the pieces may not fit for everyone. Gas Control will continue to try shut Pierze down when they can and with the cooler temperatures Viking may run with higher pressure which would allow us to free flow more often. Is there a economic difference between running Pierze vs. Alex? We are always open for suggestion or ideas so if you see something operational that would make for a better operation please give us a call.

Thanks, 
Gary
 -----Original Message-----
From: 	Rice, Tom  
Sent:	Thursday, October 18, 2001 3:29 PM
To:	Spraggins, Gary
Cc:	Willmar, Team; Odneal, Dave
Subject:	Pierz Compressor

Gary,

I think we have discussed this issue a bit at a Winter OPS meetings, but I was in Willmar the other day and took the to do to bring it up again.

When we run the Pierz Compressor, it is about $300 a day in electric bills.  That in and of itself, is not a big deal if there was no other way to operate the system.  It appears to us if the pressures on Viking's system stay at a good level, we can free-flow nearly twice as much gas into our system through valving and save the cost of running horsepower.  There were times over the past months where we operated like that for extended periods and we realized a huge savings in O&M $$.  It did not seem to be a big deal to keep the unit idle. 

We will not claim to understand all the "ins and outs" of the system.  We see our little part of the world, and it appears to us at least on the surface, that there may be a much more economical and more efficient way to run one of our facilities.  We ask you to take some time and provide us with some of Houston's background thinking on the operation of the Pierz Compressor Station.

Thanks, 
Tom