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Wyckoff Gets FERC Nod to Revamp Storage Project

FERC last Tuesday issued an order to Wyckoff Gas Storage Co. LLC, a subsidiary of Greyhawk Gas Storage Co., to amend the company's 2003 FERC certificate to build and operate a 6 Bcf working gas storage facility in western New York state.

The Wyckoff project received FERC approval to relocate a compressor station, consolidate the surface locations of six new injection/withdrawal (I/W) wells, eliminate laterals associated with the six new wells, modify laterals that are associated with three existing production wells to be converted to I/W wells, and to slightly revise the routes of the North and South Laterals [CP03-33-002]. The changes would consolidate the project facilities within a 15-acre parcel owned by Wyckoff, the company said.

Wyckoff now plans to phase the construction of the storage project, noting that it has found that half of the approved 9,470 horsepower (hp) of compression and one of two approved dehydration units will not be required initially, as well as the 7.7-mile South Lateral. Phase I will consist of initially installing only 4,740 hp of compression and a single dehydration unit; converting three existing wells to I/W wells and two existing production wells to observation wells; constructing the six new I/W wells at the new surface location and associated pipeline; and building a 3.6-mile, 16-inch diameter North Lateral pipeline.

With the phasing in of the storage project, Wyckoff said the facility's average injection capability initially will be reduced to 125 MMcf/d from the 250 MMcf/d that was originally contemplated. Wyckoff noted that the approved changes would not affect storage capacity, reservoir pressure, deliverability, withdrawal capability, storage services and the market-based rates that FERC approved in 2003.

"Wyckoff indicated that all of the originally authorized compression and dehydration may be needed within a few years of operations, if market demand develops as anticipated. Thus, in Phase II, Wyckoff would install the remaining 4,730 hp of compression, the second dehydration unit, and construct the 7.7-mile South Lateral," the order said.

The original Wyckoff storage project was to be completed in October 2006, but the FERC order gives the company three additional years to complete the facilities. Wyckoff's parent, Greyhawk, is owned by SemGas LP, a privately held midstream energy services company based in Tulsa, OK.

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