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Bluewater Begins Open Season for MI Storage Facility

Bluewater Gas Storage LLC (BGS), which was authorized by FERC last year to sell interstate natural gas storage services, is conducting an open season for firm capacity beginning April 1 at its St. Clair County, MI, facility. BGS owns two gas storage reservoirs there, Columbus III and Kimball 27, which have an aggregate working capacity of 26 Bcf.

The storage facilities are connected by a common header system that spans 36 miles and has seven interconnects with an industrial customer, several utilities and three interstate pipelines that serve, directly or indirectly, various markets in the Upper Midwest and northeastern portions of the United States and Eastern Canada.

BGS, headquartered in Houston, is an indirect subsidiary of PAA/Vulcan Gas Storage LLC, in which Plains All American Pipeline LP owns a 50% stake. It was authorized by the Federal Energy Regulatory Commission (FERC) last year to sell unlimited interstate storage services at market-based rates (see Daily GPI, Oct. 31, 2006). Previously, the Michigan facility was subject to regulation by the Michigan Public Service Commission. BGS has also obtained a waiver of FERC's "shipper must hold title" policy, which allows the company to bundle off-system capacity and offer storage to other market centers, including Chicago and Dawn.

For information on the open season, contact Richard Tomaski at (713) 652-3669 or rstomaski@bluewatergasstorage.com.

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