Title: Brent E. Kitchen
1- Brent E. Kitchen
- Wyoming Pipeline Authority Meeting
- May 25, 2004
2Piceance to Kanda Expansion
3In the Heart of the Rockies
Questar Pipeline
TransColorado
4Northern System
Kanda
Clay Basin
Greasewood
Southern System
Piceance to Kanda Expansion
5Piceance to Kanda
- Open season from Friday, April 30 until noon MDT
on Wednesday, June 2, 2004 - Capacity options from 300,000 to 450,000 Dth/d
- Autumn 2006 anticipated in-service date
6Planned Facilities
- 170 miles of 24-inch pipe
- Compression between 7,000 to 52,000 HP
- Depending on suction pressures and requested
volumes - Open Season results will determine optimal design
7Electronic Route Maps Available on Request
Please contract your QPC Marketing Rep
8Rates
300,000 Dth/d
450,000 Dth/d
Please contact your QPC Marketing Rep. with
questions regarding these rates
9Potential Northern System Receipt Points
- West of Kanda
- Any points, including but not limited to Green
River and Overthrust Basin production - East of Kanda
- Any points, including but not limited to
Desolation Flats and Dripping Rock - May require additional pipe and/or compression
10Potential Southern System Receipt Points
- West of Greasewood
- Any points, including but not limited to Ferron
Coal bed Methane area, Uintah and Piceance Basin
production - East of Greasewood
- May require additional pipe and/or compression
11Principal Producing Basins
Questar Pipeline System
WYOMING
Principal Basins Overthrust Green River Skull
Creek Sand Wash Uinta Piceance Ferron Secondary
Basins Powder River Wamsutter Big Horn Wind
River San Juan
OVERTHRUST
GREEN RIVER
SKULL CREEK
SAND WASH
UINTA
PICEANCE
FERRON
UTAH
COLORADO
12Potential Delivery Points
- Kern River Gas Transmission Company
- Northwest Pipeline Corporation
- Colorado Interstate Gas Company
- Southern Star Pipeline
- Wyoming Interstate Gas
- TransColorado Gas Transmission Company
- Overthrust Pipeline Company
13Potential Delivery Points Contd.
- Local Distribution Companies
- Questar Gas Company
- Public Service Company of Colorado
- Rocky Mountain Natural Gas
- Greeley Gas Company
- Clay Basin Storage
- Several existing and planned power plants
14Advantages to Wyoming
- Enhances Kanda as hub and pricing point
- Promotes the production of Wyoming gas for
delivery into this new pipeline - Encourages the development of new facilities in
Wyoming (for example, Questars storage projects) - Provides access to additional gas supplies for
southwest Wyoming gas consumers
15Submission of Bids
- Bids are binding
- Must include the following
- Volume (Dth/d) with desired receipt and delivery
point(s) - Max reservation rate that shipper will pay
- Usage, ACA, FGRP, and other applicable charges
will be additional - Minimum 10-year term
- Must meet Questars economic hurdle rates
- Must be received by noon MDT on Wed., June 2, 2004
16Bid Review Process
- Bids ranked based on present value calculation
(PVC) as follows - (Monthly Reservation Charge) x 1-(1 i)-n
Present Value - ( Per Unit )
i Per Unit - Where i interest rate per month, i.e.,
overall rate of return divided by 12
months - n term of the agreement, in months
17Review and Notification Process
- Priority given to bids that optimize capacity and
operating efficiency - If equal PVC, capacity will be allocated based on
date (not time) of bid receipt - Bids received on earlier dates will receive
priority over bids received on later dates - Later bids get any remaining capacity
- Award determination and notification to bidders
by July 15, 2004
18 Marketing Team
- Lynn Arnold (801) 324-2941
- Brent Kitchen (801) 324-2117
- Tom Myrberg (801) 324-2978
- Mary Kay Olson (801) 324-5873
- Martin Anderson (801) 324-2017
- Brad Markus (801) 324-5663
19QUESTIONS ?
20Thanks for your business!