Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Ryan Rosenthal with Sidoti & Company please proceed.
Ryan Rosenthal – Sidoti & Company
Good morning everyone.
Unidentified company representatives
Hey Ryan, how are you?
Ryan Rosenthal – Sidoti & Company
Good, Wanted to catch up - questions here on the wholesale storage business, specifically if you could discuss the improvement in year-over-year storage operating revenue that the company forecasts for the '09, 2010 winter season. Reviewing the NYMEX futures curve, it appears that it did improve for the storage curve later in the cycle. I was wondering if you held off on locking in some of your gains until later on than usual?
Douglas N. Schantz
Ryan, this is Doug Schantz, and obviously the spread did move out as we kind of got into the third quarter and there was kind of some storage box dynamics. We did capture- again our salt, we kind of delayed injection on which had higher spreads. The reservoir, because of the limits on the ratchets and injections, we had to kind of space over the summer. So we didn't pre-shape as much margin gain as we did on our salt storage. But, yes, no doubt the storage spreads are materially above last year at this time and, of course, that's what's behind the $35 million roll out schedule.
Ryan Rosenthal – Sidoti & Company
Okay, thanks. In terms of thinking about it – in terms of the future, would you suggest that you can wait later in the cycle to, if margins are improving over time or is there a certain amount you look to lock in up front in terms of percentage of your raw storage?
Douglas N. Schantz
Ryan, I would pay attention again to the split between our salt and reservoir because our salt we can wait on, because you can fill the capacity of salt storage typically in 20 days versus reservoir which has to be spread over, 5, 4 or 5 months so, clearly, we're going to hold back on our salt as we look at the dynamics on the storage box, but the reservoir we have to earlier and spread it out evenly. And then the same thing when you come out, we'll take advantage of salt opportunities based on real time dynamics, while the reservoir storage has to come out evenly. And most of all I'm sure you're looking out in the first quarter part of the roll out schedule for 2010 is reservoir. We just can't come out as quickly as we can on the salt.
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