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Mississippi Hub Eyes Development of New Gulf Coast Storage Site

Mississippi Hub LLC is seeking an exemption from Section 7 certificate requirements to conduct certain temporary activities to determine the operational feasibility of developing a natural gas storage facility in southern Mississippi.

Mississippi Hub, based in Lafayette, LA, was formed for the purpose of exploring the potential to site an underground storage facility in Simpson County, MS, on property owned by the company. The company wants the go-ahead to drill stratigraphic test wells to collect data confirming the suitability of the site as a storage facility location.

"An underground salt formation exists on the property owned by Mississippi Hub, and Mississippi Hub believes that this formation will support an underground natural gas storage facility," the company told FERC in its petition.

Mississippi Hub urged the Federal Energy Regulatory Commission to act on its petition by July 1 so it can immediately schedule a drilling rig. "Given the natural gas capacity demands in the Gulf Coast area, available drilling rigs are in very short supply. Mississippi Hub has been advised that a rig will be available Aug. 1, and if [it] does not contract for this rig to begin on that date, it is uncertain when another rig will be available."

Expedited approval of Mississippi Hub's request would be in keeping with the Commission's policy to "encourage the growth and development of storage facilities to meet increased demand for natural gas throughout the United States," the company said.

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