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Entrega Gas Pipeline Project

Entrega Gas Pipeline Project. Wyoming Natural Gas Pipeline Authority - August 24, 2004. 42-inch. 36-inch. Project Description. 327 miles of new interstate pipeline facilities, including 136 miles of 36-inch and 191 miles of 42-inch pipe

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Entrega Gas Pipeline Project

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  1. Entrega Gas Pipeline Project Wyoming Natural Gas Pipeline Authority - August 24, 2004

  2. 42-inch 36-inch

  3. Project Description • 327 miles of new interstate pipeline facilities, including 136 miles of 36-inch and 191 miles of 42-inch pipe • In Wyoming, approximately 50 miles of 36-inch, 183 miles of 42-inch • Runs from Meeker Hub in Rio Blanco County, CO through Wamsutter to the Cheyenne Hub near Rockport, CO • Runs through Sweetwater, Carbon, Albany, and Laramie Counties in Wyoming • Future compression includes two stations in Wyoming near Wamsutter and Arlington in the I-80 corridor. • 22 Main Line Valves with 14 in Wyoming

  4. Project Description (continued) • FERC Application capacity request of 1.5 Bcf/day (2 phases) • Phase One approximately 725 MMcf/d (free flow) • Phase Two incremental 775 MMcf/d (compression) • Further economic incremental expansion of 500 MMcf/d Wamsutter to Cheyenne Hub • Phase One receipts at Meeker Hub and delivery points at Wamsutter and Cheyenne Hub • Design anticipates both receipt and delivery capability at Wamsutter • Future Receipt/Delivery points to be determined with potential shippers

  5. Project Description (continued) • Entrega intends to be an “Open Access” Pipeline • Entrega will offer both firm (FT) and interruptible (IT) transportation services • Estimated Initial Rates are approximately: • Phase One Recourse Rates $ 0.39 (FL&U 0.15%) • Phase Two Recourse Rates $ 0.22 (FL&U 0.90%) • Estimated Project Costs are: • Phase I = $575 MM • Phase II = $75 MM

  6. Milestones Achieved • Preliminary work began in summer of 2003 to scope out the requirements and get a head start on the regulatory requirements • FERC assigned Entrega a pre-filing docket March 19, 2004 • Open Houses and separate local government meetings held on March 30, 2004 to April 6, 2004 at 4 locations in Wyoming (Cheyenne, Laramie, Rawlins and Wamsutter) • Open season held June 4 to June 25 resulted in sufficient commitment to advance the project. • Draft of application for FERC certificate nearing completion in anticipation of August 2004 filing

  7. Upcoming Milestones • FERC Draft Environmental Impact Statement is issued and comments expected by 1Q, 2005 • Anticipate FERC Certificate for the facilities from Meeker to Cheyenne Hub by 2Q, 2005 • Expect to begin construction in summer 2005 with target in service dates of 4Q 2005 for phase 1 and 2Q 2007 for phase 2 • Present plans are to utilize at least four construction spreads with approximately 450 construction and inspection staff per spread • Construction period expected to be 3-5 months.

  8. Benefits to Wyoming • Access to pipeline capacity exiting Wyoming to market hub at Cheyenne and major downstream markets • Should support future Rockies export pipeline from Cheyenne Hub to be built • Additional Ad Valorem tax revenue • New construction jobs and full time jobs • Equipment and materials purchased from Wyoming suppliers • Minimal environment impact • Route: over 90% adjacent to existing rights of way

  9. Summary • The Entrega Gas Pipeline Project is good for Wyoming • Revenue benefits • Job benefits • Minimal Environmental impact • Your support in our applications with FERC, BLM, and the local agencies will enhance agency understanding of project benefits

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