Kinder Morgan Inc. (KMI) is proposing to expand the capacity of its Oil Springs natural gas storage facility in eastern Carbon County, WY to 10 Bcf/year, which would allow cycling capability to third-party shippers, the company said Friday.

The field, owned and operated by KMI, currently is used to supply seasonal and peak-day needs for the company’s 68,000 retail distribution system customers in the state. If approved, the new capacity could be available by the summer of 2005, KMI said.

With approval from the Wyoming Public Service Commission as well as binding precedent agreements and engineering studies, the project would expand the field cycling capability by as much as 10 times to reach 10 Bcf/year, KMI said. Additional compression, dehydration equipment and new injection/withdrawal wells also would be installed.

The company also would construct a 22-mile pipeline from Oil Springs to the Interstate 80 utility corridor where the Wyoming Interstate Co., Colorado Interstate Gas and Southern Star pipeline systems are located. The proposed line also includes a new interconnect with the KMI system near Hanna, WY.

For information on the Precedent Agreements now being offered, contact Kathleen Logan at (303) 914-4765 or Kent Harris at (303) 914-7975.

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