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