Subject: bullets 9 / 15
pnm - the ferc accepted tw ' s new tariff filing for purchasing capacity on
pnm ' s blanco to rio puerco line ! ! ! the acceptance is conditioned by tw being
limited to acquire this off - system capacity to the apr - oct period and we must
file a report with the commission at the end of the 2 year period detailing
what impact , if any , this proposal has had on the market .
el paso blanco mis - measurement - el paso pipeline called this week and agreed
with tw that they had been erroneously calibrating their blanco meter for the
last several years and did in fact owe tw gas volume . they would like to
offset the balance owed tw against volume nng owes el paso . market services
is verifying the net volume figures . the settlement volume proposed by el
paso is 91 % of everything we requested . we will attempt to take the
approximately 651 , 000 mmbtu back at window rock over a 30 day period
beginning in october .
arizona public service - we have re - negotiated their ft agreement prior to
the rofr being triggered at the end of september . aps will renew its 8 , 000
mmbtu / d permian to needles agreement at the max rate for one year as well as
the provision if they release the capacity at greater than max rate , tw and
aps will share the upside 50 / 50 .
red cedar gathering - we received the signed letter agreement from red cedar
which commits them to full reimbursement of the capital expense necessary to
increase the arkansas loop meter from 200 , 000 mmbtu to 300 , 000 mmbtu / d . we
expect this meter increase to be completed and flowing in excess of the
current 200 , 000 mmbtu / d by january 1 , 2001 .
system expansions - we have updated our cost estimates and raroc for
expansions of the i - b link , blanco to thoreau and mainline segments of the
pipe . we will follow up with pnm today on cost comparisons . the tw
expansion appears to be more cost effective than pnm ' s .
the bp amoco / vastar merger is set for completion today . amoco will begin
marketing vastar ' s equity gas beginning 11 / 1 / 00 . amoco has expressed a high
level of interest on the remaining capacity from ignacio to blanco and from
red cedar to blanco for 2001 . they will provide a firm offer to tw next week .
line outages :
the september 13 th allocation due to compressor failure in tw ' s west of
thoreau area allowed for 42 , 0000 mmbtu of it volumes to flow from pg & e topock
to socal needles . revenue generated at max rate equaled $ 10 , 500 to partially
offset the commodity and fuel loss .
eog resources - eog executed the interconnect and operating agreement for the
15 , 000 mmbtu / d we expect from their new well . transwestern has initiated
landowner notifications which takes at least 30 days . we continue to
negotiate with eog on becoming a new shipper and taking firm transport on tw .
burlington resources val verde plant - tw ' s ability to accept the contracted
volume from the plant on a consistent basis continues to be an issue . high
temperatures and volume flow in the san juan region have reduced our
capacity . br is requesting relief to offset the monetary impact of gas that
was shut in or sold at lesser margins in other locations . we are working
with facility planning to determine what capital / equipment may be necessary
to meet our contractual demand .