The project can not be justified, if you have the capital cost of the pigging facilities.  On a stand alone basis without the pigging facilities we can justify the project.

James

 -----Original Message-----
From: 	Geaccone, Tracy  
Sent:	Monday, October 15, 2001 3:48 PM
To:	Centilli, James
Subject:	FW: LaPlata DRA Application Cost Estimate

Have you had a chance to run this?  If not, when do you think you will?

Thanks

 -----Original Message-----
From: 	Sturn, John  
Sent:	Monday, October 15, 2001 2:24 PM
To:	Geaccone, Tracy
Subject:	RE: LaPlata DRA Application Cost Estimate

Tracy,

Have you made any progress on the economic analysis?

Thanks,


John

---------------------- Forwarded by John Sturn/ET&S/Enron on 10/15/2001 02:22 PM ---------------------------
From:	John Sturn on 09/17/2001 07:18 AM
To:	Tracy Geaccone/ENRON@enronXgate
cc:	Rich Jolly/ET&S/Enron@ENRON, Earl Chanley/ENRON@enronXgate, Ben Asante/ENRON@enronXgate, Gary Choquette/ENRON@enronXgate, Kim Kouri/ENRON@enronXgate 

Subject:	RE: LaPlata DRA Application Cost Estimate   << OLE Object: StdOleLink >> 

Tracy,

10,000 MMBTU/D of incremental capacity from LaPlata to Gallup.

This is the working assumption from our initial conference call.  Like the +/- 30% cost figures below, it may vary with further evaluation, but I suggest it be used for this initial analysis.

Thanks,


John



From:	Tracy Geaccone/ENRON@enronXgate on 09/16/2001 01:25 PM
To:	John Sturn/ET&S/Enron@ENRON
cc:	Rich Jolly/ET&S/Enron@ENRON, Earl Chanley/ENRON@enronXgate, Ben Asante/ENRON@enronXgate, Gary Choquette/ENRON@enronXgate, Kim Kouri/ENRON@enronXgate 

Subject:	RE: LaPlata DRA Application Cost Estimate

How much additional capacity/volumes will I get?

 -----Original Message-----
From: 	Sturn, John  
Sent:	Friday, September 14, 2001 5:50 PM
To:	Geaccone, Tracy
Cc:	Jolly, Rich; Chanley, Earl; Asante, Ben; Choquette, Gary; Kouri, Kim
Subject:	LaPlata DRA Application Cost Estimate

Tracy,

Below are the rough cost estimates to apply drag reducing agent to the LaPlata to Bloomfield line.

	Facility modifications			$1,665,000

	Cleaning & application			   $165,000

	Re-application every 6 months		   $165,000


The facility modifications include a launcher at LaPlata, receiver at Bloomfield and a filter separator at the El Paso Blanco delivery.  The cleaning & application and re-applications costs include cleaning pig runs with methanol and surfactant as well costs for the actual DRA application.

For analyzing sensitivities, all costs are +/- 30%.  The re-application time period is also uncertain.  You may want to look at the economics of re-apply as often as every three months and as infrequently as every 12 months.

Please let me know of anything else you need.

Thanks,


John