I would like to pursue as quickly as possible the option of adding the coolers to get the incremental 10,000/d. Please proceed with developing a more exact cost estimate and determining from a materials standpoint what  the timing of the project might be. Thanks.

	Steve

 -----Original Message-----
From: 	Matthews, Ron  
Sent:	Wednesday, January 16, 2002 1:42 PM
To:	Harris, Steven; Watson, Kimberly; Lindberg, Lorraine; Asante, Ben; Alters, Dennis; Keller, John R.
Cc:	Eisenstein, Arnold L.; Centilli, James
Subject:	San Juan Expansion Options - Small Volume

Marketing requested Planning to review any and all possibilities to achieve small volume expansions through the San Juan lateral.  Several facility scenarios were investigated by Planning which are in the attached Excel spreadsheet.  Most if not all are too costly to justify installing.  However, there is another option that is not listed in the attached that was a late entry.  Discussions with Engineering have determined that by cooling the inlet air to the turbines would increase the available horsepower.  That in turn would increase the station's overall throughput.  Preliminary studies indicate that approximately 10 MMcf/d of additional throughput could be realized if inlet air cooling is installed.  The + 30% estimate for two units would be $600,000.  BIG bargain compared to the options in the attached file.  The facility installation is not a major job but the FERC approval to utilize additional horsepower could take 6 - 9 months.  Other considerations to review would be the air quality permit for the increase in horsepower, and potential environmental clearances to do construction.  Let me know what you think about this suggestion.  Please feel free to call.

Ron Matthews


 << File: SJLEXP01.XLS >>