FERC on Friday approved a short natural gas interstate pipeline from Wyoming to Colorado for an interconnection with Kinder Morgan's Wyoming Interstate Co. (WIC) pipeline in Weld County, CO.
Privately held Tulsa-based Kaiser-Francis Oil Co.'s Kaiser-Frontier Midstream LLC unit received the certification from the Federal Energy Regulatory Commission. It now turns its three-segment gas gathering system in the Denver-Julesburg Basin east of Cheyenne into a 34.5-mile federal jurisdictional pipeline. Kaiser-Frontier gained authorization to add a 14.5-mile, eight-inch diameter lateral to the southern segment of its Silo Pipeline.
The FERC order cited Kaiser's plan to use the pipeline to transport its own gas from its Silo Gas Processing Plant at the Silo Field in Laramie County, WY, to the interconnection with WIC. As part of the upgrade, it will replace part of the original 10.5-mile, four-inch diameter northern segment with 6.8 miles of six-inch diameter gas pipeline. The middle segment of the Silo system will remain unchanged.
Kaiser-Frontier owns and operates approximately 75 miles of non-FERC jurisdictional gathering pipelines carrying its unprocessed gas from the Silo Field wellheads east of Laramie. The parent company, Kaiser-Francis, owns various oil and gas-producing wells in the Silo.
Most of the gas handled by Kaiser-Frontier are from its parent's operations, and the company told FERC it does not intend to transport third-party gas in the new lateral, so it was granted waivers to various usual FERC requirements, such as firm and interruptible transportation services since those services relate only to open-access pipelines.
In its FERC application, Kaiser-Frontier maintained that production in the Silo Field is expected to increase beyond the needs of the main current customer, local utility Cheyenne Light, Fuel & Power.