This excerpt taken from the EPD 8-K filed Aug 28, 2006.
Slide 80 South Texas NGL Facilities
We looked at Javalina whenever it came up. We saw what they were getting for C4+ and we saw things like Mont Belvieu less $0.04 and $0.05 per gallon. So what weve done with these plants is theyre all tied into our Shoup fractionator. And what weve now done is we converted that one pipeline that we had that we just used in batch service as kind of an overflow, pressure relief valve if you would. And last January first when our contract with that chemical company expired, we didnt renew it. We have converted that 8 pipeline to ethane service and we moved all 35 MBPD to Mont Belvieu.
Now weve got another big contract terminating at the end of this year and we, I mean you know we looked at Javalina. We, I may be from Shreveport but Im not totally dense, I figured out that the price is going to be a pretty good discount compared to where we were. So we bought a 16 pipeline that Bob mentioned that we closed on 2 weeks ago, and were extending that pipeline into Mont Belvieu. Now weve got options. Now weve got another corridor. Were going to take those liquids to Mont Belvieu. If we have to, were going to shut that frac down and were going to take all 70 to 75 MBPD to Mont Belvieu and that 8 line thats been transporting the ethane, were going to reverse it because theres still a heck of a local market down there that needs serving. But were not going to be looking at Belvieu less 2, 3, 4 or 5. Our sales are going to be Belvieu plus $0.025 or $0.03 because we can serve it and thats our alternative. Their alternatives are things like barges at $0.06 or railcars at $0.06, Dan? I dont know what a rail rate is, but thats what were doing in South Texas.
We have a corridor from the Rockies, strong production, a lot of volume and control with the local market at Hobbs and Conway. Now weve got a corridor from South Texas. We aggregate all of our volume. We move it up to the massive complex we have in Mont Belvieu and then we serve the local market. Were using that complex to help us enhance the total and then enhance at the margin.