Line Pressure Update

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

The line pressure in the San Arroyo field continues to be the cause of =01&=
less=20
than expected=018 production. The field consists of 36 wells that have 16 =
day=20
meters located at each well site. Wildhorse gathers the gas to their=20
compressors located at the San Arroyo Plant and then moves the gas to an=20
interstate pipeline. Wildhorse owns all the gathering system from the well=
=20
site gas meters to their compressors at the Plant to the interstate pipelin=
e=20
connection. Wildhorse has not made lowering the line pressure in the San=
=20
Arroyo field a high priority. Line pressure currently is 140 psi at the SA=
=20
#16. This well is the closest well to the Plant on Route 1. All wells=20
behind the #16 will have a higher line pressure to overcome. =20
The line pressure on Route 2 is in the 120 psi range. We have two field=20
compressors on Route 2, a 90 Hp Ajax and a 80 Hp Ajax, they are both runnin=
g=20
at this time. They were designed to have a suction pressure of 50 psi and =
a=20
discharge of 100 psi. Due to the high pressure at the discharge, 120 psi,=
=20
the suction pressure has been 75 to 80 psi. In order to place more field=
=20
compressors in strategic locations we would need the cooperation of Wildhor=
se=20
in order to use their line. In the past this has taken months to obtain.=
=20
We will be installing a small 50 Hp compressor on the SA #16 on Dec 13. =
=20
This compressor will have the capability of 20 psi suction and 250 psi=20
discharge. The capacity of this unit is 300 mcfpd. This compression test=
=20
will be done at the well head on selected wells. If an economical increase=
=20
in gas volume is realized, then we can decide how to implement this procedu=
re=20
field wide.
It is still my opinion that Wildhorse is much more interested in moving=20
large amounts of gas from up North through the Plant to Northwest pipeline=
=20
for 13% of resale price than they are in moving our gas for $0.25 per mcf. =
=20
The high volume of gas from the north packs the line and increases the back=
=20
pressure on the San Arroyo field. The high revenue generated for Wildhorse=
=20
from 13% fee, causes the Wildhorse field people to pay much more attention =
to=20
that operation than to the gathering of gas in the San Arroyo field.

---------------------- Forwarded by Arvel Martin/HOU/ECT on 12/05/2000 01:1=
8=20
PM ---------------------------

Dreineke@aol.com on 12/05/2000 11:04:15 AM
To: Arvel.Martin@enron.com
cc: =20
Subject: Line Pressure Update

- San Arroyo Pressure.doc