the below is from the attached letter from dan reinecke...

The line pressure in the San Arroyo field continues to be the cause of &less 
than expected8 production.  The field consists of 36 wells that have 16 day 
meters located at each well site.  Wildhorse gathers the gas to their 
compressors located at the San Arroyo Plant and then moves the gas to an 
interstate pipeline.  Wildhorse owns all the gathering system from the well 
site gas meters to their compressors at the Plant to the interstate pipeline 
connection.  Wildhorse has not made lowering the line pressure in the San 
Arroyo field a high priority.  Line pressure currently is 140 psi at the SA 
#16.  This well is the closest well to the Plant on Route 1.  All wells 
behind the #16 will have a higher line pressure to overcome.  
The line pressure on Route 2 is in the 120 psi range.  We have two field 
compressors on Route 2, a 90 Hp Ajax and a 80 Hp Ajax, they are both running 
at this time.  They were designed to have a suction pressure of 50 psi and a 
discharge of 100 psi.  Due to the high pressure at the discharge, 120 psi, 
the suction pressure has been 75 to 80 psi.  In order to place more field 
compressors in strategic locations we would need the cooperation of Wildhorse 
in order to use their line.  In the past this has taken months to obtain. 
 We will be installing a small 50 Hp compressor on the SA #16 on Dec 13.  
This compressor will have the capability of 20 psi suction and 250 psi 
discharge.  The capacity of this unit is 300 mcfpd.  This compression test 
will be done at the well head on selected wells.  If an economical increase 
in gas volume is realized, then we can decide how to implement this procedure 
field wide.
 It is still my opinion that Wildhorse is much more interested in moving 
large amounts of gas from up North through the Plant to Northwest pipeline 
for 13% of resale price than they are in moving our gas for $0.25 per mcf.  
The high volume of gas from the north packs the line and increases the back 
pressure on the San Arroyo field.  The high revenue generated for Wildhorse 
from 13% fee, causes the Wildhorse field people to pay much more attention to 
that operation than to the gathering of gas in the San Arroyo field.


---------------------- Forwarded by Arvel Martin/HOU/ECT on 12/05/2000 01:18 
PM ---------------------------


Dreineke@aol.com on 12/05/2000 11:04:15 AM
To: Arvel.Martin@enron.com
cc:  
Subject: Line Pressure Update


 - San Arroyo Pressure.doc