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Exhibit 6: Slow Buildup Strategy Trailers Required Customer Demand (MMcf) Time (one way) Trailers Needed Coalinga 100 13 1.81 Palo Alto 200 12 3.33
Exhibit 6: Slow Buildup Strategy Trailers Required Customer Demand (MMcf) Time (one way) Trailers Needed" Coalinga 100 13 1.81 Palo Alto 200 12 3.33 Susanville 100 8 1.11 Vernon 100 17 2.36 Island Energy 100 10 1.39 Long Beach 600 18 15.00 PG&E 2,300 7 22.36 SDG&E 800 SoCalGas 1,600 Southwest Gas 400 Tuscarora 100 2565n 20 22.22 15 33.33 16 8.89 0.69 Total *112.50 Round up to 113. *Trailers required for a customer = (Demand/90 days) x (2 x Time)/16. Customer demand is filled into satellite tanks over a 90-day period. Each trailer travels for 16 hours per day. Source: Created by the authors. Profit Estimate Estimated Coos Bay tank capacity = Cost of Coos Bay tank (I Bcf capacity) = Cost of satellite tanks = | Bcf $9.5 million $79 million Number of trailers required = Trailer cost = Annual operating cost per trailer = Annual trailer + driver cost = Annual margin = 2 seasons x $2/Mcf x 6.4 million Mcf/season = Source: Created by the authors. 113 $5.65 million (= 113 0.05 million) $0.005 million $6.5 million $25.6 million
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