	316B PHASE III RULE

 TELEPHONE LOG

Name of Caller: 	John Sunda, SAIC

Date: 			June 10, 2008

Company Name: 	Blue Stream Services

Street Address:		

City/State/ZIP:	New Iberia, LA

Person Contacted:	Richard Brister 

Title:			Cooling Tower Specialist		

Telephone #:		504-400-0093

E-Mail: 		rabrister@bellsouth.net                                       
                                                                        
                  

Called to inquire further about technical requirements and costs of
modular cooling towers.

He has previously sent me modular 3,000 ton tower monthly rental costs
for a minimum of 4 months/yr. The intent is to provide supplemental
cooling or flow volume to plants that need it for only a portion of the
year – often just 4 months.  These costs include the units, piping,
and pumps. They represent a relatively simple engineering job without
extremely long pipe runs. They do not include freight and installation
labor since these costs are very site-specific especially freight. They
also do not include any site preparation costs.  As an example he said
freight could cost $3,000 to $4,000 per unit each way but is highly
variable due to distance and recent changes in freight costs.  Thus, the
costs do not cover mobilization and demobilization activities. However,
the units may remain onsite for the remainder of the year at no extra
cost. So if a multi-year contract is used the mobilization and
demobilization costs can be amortized over the length of the contract. 
The rental costs also include all maintenance costs. The vendor will
replace and repair all equipment such as pumps, etc. The systems are
monitored and controlled using computers so no additional operational
labor is needed.

The costs do not include power supply equipment. He said that since the
client being a power company they will likely be able to provide this
component themselves so he only provided the me power requirements. He
noted that the power requirements provided were on the high side
especially for larger systems.

Regarding space requirements, he said that in some cases if space is a
problem they have installed cooling units and/or pumps on barges.

He also noted that rentals are an easier option for power plants because
they can be paid for using the operating budget as opposed to funding as
a capital expenditure which requires all sorts planning, approvals, etc.
 

