Mark:

I had a message from Jennifer Greenwell wanting to know the status of the Cost estimate.  I probably did't make myself clear in the memo below, but I thought you were going to call her back.  Let me know if you need me to contact her.  Our usual procedure is to contact the client only when clarification is needed, otherwise all transactions are between you and them.

PT  3-0667

 -----Original Message-----
From: 	Frazier, Perry  
Sent:	Thursday, October 18, 2001 9:01 AM
To:	Alters, Dennis; McConnell, Mark
Cc:	Abdmoulaie, Mansoor; Chanley, Earl
Subject:	RE: TW Well Connects

Mark:

I called Tommy Edwards(713-209-1112) with Cima yesterday morning and talked with him about his plans for the new interconnect he has proposed.  They have completed 1 well and will drill up to 4 more development wells, in the near future.  The location he verified is Sec. 31, T19S, R21E, Eddy County, New Mexico.  He called us wanting an I/C, because the old map he was using indicated that Enron owned the lines.  The problem is that these were the gathering lines that we sold to Agave 5-6 years ago.  We still own the Atoka #1, 2 & 3 gathering compression units and the main branch lines,  but these wells will have to be connected to the Agaves Gathering system.  I spent some time looking at this yesterday afternoon and have not relayed this information to him.   Please call me to discuss any concerns, before you call Tommy.

Perry Frazier
713-853-0667

 -----Original Message-----
From: 	Frazier, Perry  
Sent:	Thursday, October 11, 2001 12:38 PM
To:	Alters, Dennis; McConnell, Mark
Cc:	Abdmoulaie, Mansoor; Chanley, Earl
Subject:	RE: TW Well Connects

Mark:  
I have talked with Jennifer Greenwell about the Nadel & Gussman, Buffalo Hunt # 21 well to be drilled starting on or around October 15, 2001.  The target is the Atoka Morrow formation with expected volumes of about .5 to 1.0 mmbtu/d with a working pressure of 600 psig.  The well location is about a mile off of our 24" WTX Lateral at Mile Post 28.5 south of Station # 9.  N&G will have to set a small compressor to get into TW, because the line pressures are in the range of 750 - 950 psig.  The alignment sheets do not indicate an existing tap on either of our lines, a new hot tap will be required for connection. The volumes are so small that it appears it might be more cost effective to lay the 5 mile of line pipe to Agave.  The following are the results of a discussion I had with the Earl (E&C) on the costs required to connect to our system.

Hot Tap and EFM	 $75,000	
H2S & H2O		 $24,000
Unknowns		 $30,000
Totals			$129,000

Basically, the range is around the $100K to $130K level.  I will need to verify with the Carlsbad Team about the project if it looks like a go.  Jennifer was going to use the numbers to figure her cost/benefit analysis for choosing TW or Agave.  My recommendation would be to go to Agave, if she can justify the costs for 5 miles of line.

Perry Frazier
713-853-0667

 -----Original Message-----
From: 	Alters, Dennis  
Sent:	Thursday, October 04, 2001 10:34 AM
To:	Frazier, Perry; McConnell, Mark
Cc:	Abdmoulaie, Mansoor
Subject:	TW Well Connects

Mark, Perry will be your direct contact on these projects. 

Perry,
Please provide location and avaliable tap information to Mark. I have left a message for 
Mark to see if he will need Planning to provide Level A Cost estimates. It is OK to contact the 
producers directly.  

Well # 1 - Cima - Contact  Tommy Edwards 713 209 1112
500-1000 MMBtu/d Approx. 600 psig
T19S R21E Section 31- Eddy or Chaves County, Tx
15 Miles S/SW of Hope

Well # 2 - Nadel and Gussman - Contact Jennifer Greenwell 918 583 3333
500 - MMBtu/d Approx. 200 to 300 psig
T13S R27E Section 21