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Unocal Conducts Open Season for Storage Facility in Colorado

Unocal Windy Hill Gas Storage LLC is conducting a nonbinding open season through May 18 for 6 Bcf of future natural gas storage capacity at a facility planned on its Windy Hill property in Morgan County, CO. The new facility would be the first bedded salt underground gas storage facility in Colorado.

According to Unocal Midstream & Trade (UMT), a 6,500-foot test well was drilled at the facility site last October to assess the thickness, quality, quantity and mechanical properties of the salt. Following the test well, UMT obtained the technical confirmation needed to move the project forward.

"Given the positive results of the test well and the need for high-deliverability storage services in the Rockies,we are optimistic about taking this project to the next stage," said Joe Blount, UMT's COO. "Through this open season, we'll engage potential customers in the area to see how we can best meet their gas storage need."

Located near Brush in northeastern Colorado, Windy Hill's initial 6 Bcf would be developed in two phases with a maximum withdrawal rate of 400 MMcf/d and an injection rate of 135 MMcf/d. Phase I, expected to be in operation by early 2008, would offer 3 Bcf of working gas capacity. Windy Hill would ultimately provide up to 9 Bcf of storage capacity to shippers at the Cheyenne and Greensburg hubs, as well as Denver markets, via connections with Cheyenne Plains, CIG and Xcel's Public Service Company of Colorado.

The Unocal Corp. subsidiary plans to construct Windy Hill as an interstate facility, which will require permits from the Environmental Protection Agency and the Federal Energy Regulatory Commission.

Interested parties should contact Steve Hanshaw at (281) 287-5804 or stephen.hanshaw@unocal.com, or Rex Bigler at (281) 287-5513 or rbigler@unocal.com.

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