revised bullets 8 / 25 el paso field services - epfs has agreed to go forward on a new interconnect
with tw in eddy county , nm . the size of the new interconnect will be 40 , 000
mmbtu / d . epfs has agreed to pay $ 165 , 000 towards the cost estimate of
$ 280 , 000 as well as commit 12 , 500 mmbtu / d throughput for a period of 2
years . facility planning is opening a new work order and we have begun
drafting the interconnect agreement and the oba for the new point . the point
should be active in 60 - 90 days .
arizona public service - has still not signed the transport request for the
14 , 000 mmbtu / d april - october 2001 capacity . the current spread is $ 0 . 375 -
$ 0 . 40 .
red cedar - has finally decided on their transport volume under our new 5
year agreement . contract documentation is being prepared .
sempra - has again exercised their option under their gallup contract for
21 , 500 mmbtu / d permian to california for 1 year starting 11 / 1 / 01 . the
contract rate is $ 0 . 30 plus fuel .
texaco is moving up to 100 , 000 mmbtu / d from pg & e topock to mojave starting
8 / 21 through 10 / 31 / 00 . tw collected an incremental $ . 025 / mmbtu for this move
or approximately $ 160 , 000 .
el paso outage -
current reports are the office of pipeline safety is demanding el paso hydro
test , x - ray and ultrasonic test all 330 miles of pipe that is currently out
of service due to last weekend ' s explosion . it appears the 1 bcf / d capacity
to california may be off - line for up to one month .
related developments
- - socal released capacity on el paso for october 2000 to dynegy at a
reservation charge of $ 1 . 00 / mmbtu .
- - volume on various tw interconnect points has picked up on the east end
including the new ngpl winkler point .
- - we are receiving incremental volume from el paso at window rock and
collecting a portion of the market premium .
transport options - a working group meeting with customers has been scheduled
for thursday august 31 . the objective will be to get everyone comfortable
and build a coalition of support behind our new options tariff filing .
burlington resources - we held a conference call with john hinton , marketing
director , regarding the current operation of the val verde plant . our data
indicates with the exception of a few t - 5 temperature limit days , tw has been
able to accept over 98 % of the gas nominated by the plant . in addition , for
the last 2 years , the plant has been delivering gas with co 2 in excess of our
specs . we agreed our latest amendment draft could use some stronger language
in terms of tw ' s obligations beyond a " best efforts " basis . john indicated
a willingness to work together as they were trying to schedule a delivery of
215 , 000 mmbtu to us for hub delivery . we agreed to talk again next week
once the volume test was complete .
socal windowing - a conference call was held with mike nelson , rich jolly ,
steve january , terry galassini , darrell schoolcraft , ray smith , gary choquet ,
and david roentsch regarding tw ' s pressures and delivery capability at socal
needles . analysis indicates we have 35 pounds of pressure drop from our
needles measurement station to the socal station across the river
( approximately two miles ) . socal maintains that if we can give them 830 psi
at their station , they can take the full 750 , 000 mmbtu under the contract
( this translates to 870 psi at tw ' s meter with our current situation ) . our
problem has been if we lose volume out of san juan or a unit on the west of
thoreau leg , then we lose line pack and then pressure at the border . socal
acknowledges they have a motor out of service at needles but plan to have it
back on line in october . but they maintain this won ' t help resolve the
situation . operations has agreed to look at a number of things including
changing the type of meter at needles , looking at some station valve
replacement , and mechanical condition of stations 1 through 4 . marketing
agreed to estimate the revenue impact of the pressure drop and lower volume
delivery to help justify any capital expenditures .
revised bullets 8 / 25
el paso field services - epfs has agreed to go forward on a new interconnect
with tw in eddy county , nm . the size of the new interconnect will be 40 , 000
mmbtu / d . epfs has agreed to pay $ 165 , 000 towards the cost estimate of
$ 280 , 000 as well as commit 12 , 500 mmbtu / d throughput for a period of 2
years . facility planning is opening a new work order and we have begun
drafting the interconnect agreement and the oba for the new point . the point
should be active in 60 - 90 days .
arizona public service - has still not signed the transport request for the
14 , 000 mmbtu / d april - october 2001 capacity . the current spread is $ 0 . 375 -
$ 0 . 40 .
red cedar - has finally decided on their transport volume under our new 5
year agreement . contract documentation is being prepared .
sempra - has again exercised their option under their gallup contract for
21 , 500 mmbtu / d permian to california for 1 year starting 11 / 1 / 01 . the
contract rate is $ 0 . 30 plus fuel .
texaco is moving up to 100 , 000 mmbtu / d from pg & e topock to mojave starting
8 / 21 through 10 / 31 / 00 . tw collected an incremental $ . 025 / mmbtu for this move
or approximately $ 160 , 000 .
el paso outage -
current reports are the office of pipeline safety is demanding el paso hydro
test , x - ray and ultrasonic test all 330 miles of pipe that is currently out
of service due to last weekend ' s explosion . it appears the 1 bcf / d capacity
to california may be off - line for up to one month .
related developments
- - socal released capacity on el paso for october 2000 to dynegy at a
reservation charge of $ 1 . 00 / mmbtu .
- - volume on various tw interconnect points has picked up on the east end
including the new ngpl winkler point .
- - we are receiving incremental volume from el paso at window rock and
collecting a portion of the market premium .
transport options - a working group meeting with customers has been scheduled
for thursday august 31 . the objective will be to get everyone comfortable
and build a coalition of support behind our new options tariff filing .
burlington resources - we held a conference call with john hinton , marketing
director , regarding the current operation of the val verde plant . our data
indicates with the exception of a few t - 5 temperature limit days , tw has been
able to accept over 98 % of the gas nominated by the plant . in addition , for
the last 2 years , the plant has been delivering gas with co 2 in excess of our
specs . we agreed our latest amendment draft could use some stronger language
in terms of tw ' s obligations beyond a " best efforts " basis . john indicated
a willingness to work together as they were trying to schedule a delivery of
215 , 000 mmbtu to us for hub delivery . we agreed to talk again next week
once the volume test was complete .
socal windowing - a conference call was held with mike nelson , rich jolly ,
steve january , terry galassini , darrell schoolcraft , ray smith , gary choquet ,
and david roentsch regarding tw ' s pressures and delivery capability at socal
needles . analysis indicates we have 35 pounds of pressure drop from our
needles measurement station to the socal station across the river
( approximately two miles ) . socal maintains that if we can give them 830 psi
at their station , they can take the full 750 , 000 mmbtu under the contract
( this translates to 870 psi at tw ' s meter with our current situation ) . our
problem has been if we lose volume out of san juan or a unit on the west of
thoreau leg , then we lose line pack and then pressure at the border . socal
acknowledges they have a motor out of service at needles but plan to have it
back on line in october . but they maintain this won ' t help resolve the
situation . operations has agreed to look at a number of things including
changing the type of meter at needles , looking at some station valve
replacement , and mechanical condition of stations 1 through 4 . marketing
agreed to estimate the revenue impact of the pressure drop and lower volume
delivery to help justify any capital expenditures .