Western Gas Resources-California last week applied to theCalifornia Public Utilities Commission to operate a Californiautility. Western-California, a subsidiary of Western Gas Resources,has acquired an option to buy the Steelhead Pipeline System andportions of the Sacramento River Gas System in northern Californiafor an undisclosed sum. Western is seeking to change the systems’status from proprietary to public utility.

The pipelines would be operated on an open-access basis. Westernsaid the pipes are well positioned to serve some of the largeincremental gas loads required for proposed power generationprojects in Contra Costa County, CA. Western is considering addingcompression and an interconnection with Pacific Gas &Electric’s backbone system to increase throughput to fully utilizethe systems. An open season is planned for next month. If Westernchooses to acquire the pipes, closing is expected in early 2000.

©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.