Questar

Kim
Monday I will be on vacation.
I have listened to the message from Questar and it seems like that the Morongo Valley area ( with R.O.W issues) is a few miles away
from the SOCAL interconnect.
The distance from Needles to SOCAL interconnect is approximately 90 miles. The horse power requirements to handle up to
100 mmcf/d from Needles to SOCAL is around 2,500 hp.

Based on the above, and also assuming that SOCAL has the capacity to handle up to 100 mmcf/d at a pressure of 850 psig
at this location, the conversion/ compression cost is as follows:

Conversion costs for 90 miles: $9,000,000

Compression cost: $6,000,000

Total costs $15,000,000

Note: As we have discussed before this cost is based on EE&CC cost estimate of 1997 plus 5% escalation for each year.

Mansoor