In a sauce pan, sweat the shallots and broken up chiles in butter. Deglaze pan with white wine and tarragon vinegar. Reduce the liquid by one third of its original volume. Add the Sauce Espagnole. Reduce the sauce until it coats the back of a spoon. Strain the sauce through a China Cap or fine mesh collander. Adjust the seasoning with salt and pepper - if needed.
This sauce may be "lifted" with two Tbl of cold butter immediately prior to service.