Thanks Joe and Sherry. I am also sending this to Jo Williams for consideration. sj

 -----Original Message-----
From: 	Forbish, Sherry  
Sent:	Tuesday, November 20, 2001 10:06 AM
To:	Blair, Lynn; January, Steve; Spraggins, Gary; Buchanan, John; Mercaldo, Vernon; Kowalke, Terry
Subject:	Hobbs System Conversation -- Gas Control Meeting, 11/20

Joe was visiting with Crystal Hand and Sam Rhodes, Oxy Permian, the operator for Altura Gaines (POI #78023), this morning.  

They again expressed interest in increasing their capability to flow more volume at the above by increasing the orifice plate at the meter station.  They also have included estimated costs in their upcoming budget to increase the capacity at the processing plant to accommodate increased production anticipated in the first to second quarter of 2002.  If this plate change occurred, Altura could theoretically flow up to 30,000 dths/d into NNG.  They are projecting 40,000 dths/d.  

They are also talking with Mustang at the 26"Plains i/c since they could deliver volume back to Mustang which could then flow to NNG or EPNG -- this might relieve the volume in the Hobbs System where other producers could increase their volumes.  However, Mustang doesn't want to pay the transport.  We understand Aquila owns Mustang.

Sherry has visited with Matt Chance, Dynegy, along with Debra Tower, scheduler who monitors the volumes at Warren Eunice (POI #6751).  Matt has expressed concern regarding the frequent allocation of the Hobbs System -- severely affects Dynegy's equity volumes.

Joe and I are passing along this information for your consideration in addition to the GPM Linam Ranch point.

Joe and Sherry