One of the responses by Constellation/Pace to the Firm Transportation Draft 
is the volume stipulated in Article 3.1.  Our position in the draft was that 
we had the right to refuse receipt of gas into the new lateral that is below 
5,000 MCF/D.  The number was based upon our belief that the ultasonic meters 
that would be installed in the new pipeline had this value as its lower limit 
of accuracy.  Upon further investigation, however, we have discovered that 
the value is actually higher.

Tom Cathy of Hanover Measurement indicates that HPL is willing to accept a 
pipeline velocity that is significantly below what most would consider 
standard industry practice for ultrasonics.  We would accept a minimum flow 
rate of 3 feet per second.  At 3 fps the minimum flow rate would be: 8,200 
MCF/D @ 600 psig, 9,500 MCF/D @ 700 psig and 10,800 MCF/D at 800 psig.  

Cathy points out, however, that the industry standard velocity would be 10 
fps.  At 10 fps the minimum acceptable flow rate for our ultrasonic 
measurement would be: 27,000 MCF/d @ 600 psig, 31,900 MCF/D @ 700 psig and 
36,400 MCF/D @ 800 psig.

Our hydraulics indicate that to meet the Rio Nogales Power Plant minimum 
inlet pressure of 540 psig, the minimum receipt pressure at Prarie Lea (to 
meet full load requirements from either HPL or Oasis) would need to be 778 
psig.  At PG&E it would be 622 psig.

Based upon the above facts, I recommend that we change our requirement in 
Article 3.1 to be 36,400 MCF/D @ 800 psig.

Please review and comment.