Questar filed a motion at FERC earlier this week requestingauthority to construct, own and operate facilities that coulddeliver up to 250 MMcf/d into the Kern River system near Elberta,UT.

The filing is related to an $80.8 million, 272,000 Dth/dpipeline loop project Questar filed plans for last month. NamedMainline (M.L.) 104, the proposed pipeline would run fromnortheastern Utah to north central Utah, extending from acoal-seam reserve in the area of Price, UT to interconnections withthe its own Payson Citygate and Kern River. The project would loopa portion of Questar’s M.L. No. 40 and the entirety of its mainlineNo. 41. Questar has asked FERC to make a ruling on this project byAugust.

M.L. 104 could also serve western markets, Questar argued, bytransporting volumes delivered to it by CIG Resources from the CIGUinta Basin Lateral to Kern River. CIG is a partner in the project.

Another reason for M.L. 104, according to Questar, is theburgeoning production of the Price area reserve. The field is nowproducing 150 MMcf/d as compared to 4 MMcf/d in 1993. Questarestimated that production could reach 250 MMcf/d by 2002. M.L No.40 and No. 41 are both running at full capacity and Questarbelieves additional facilities are needed to satisfy “the presentand projected demand” for additional transportation capacity.

An open season was conducted in early 1999 to determine thepossible market demand for the overall project. Eight customersdemonstrated interest, the company said. Questar has forged fourfirm transportation agreements with three customers for virtuallyall of the capacity in the project. Of those agreements, two arewith its affiliate, Questar Gas, one is with CIG Resources andanother with Texaco Natural Gas . The agreements range in lengthbetween five and 10 years.

©Copyright 2000 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.