Questar filed a motion at FERC last week requesting authority tobuild a pipeline interconnection that could deliver up to 250MMcf/d into the Kern River system near Elberta, UT.

The Kern River interconnect is related to a proposed Mainline(M.L.) 104 loop project, an $80.8 million, 272,000 Dth/d proposedpipeline Questar filed plans for last month. M.L. 104 would runfrom northeastern Utah to north central Utah, extending from acoal-seam reserve in the area of Price, UT, to interconnectionswith the its own Payson Citygate and Kern River. The project wouldloop a portion of Questar’s M.L. No. 40 and the entire M.L. No. 41.Questar has asked FERC to make a ruling the looping project byAugust.

The main reason for M.L. 104, according to Questar, is theburgeoning production of the Price area reserve in the Uinta Basin.The field is now producing 150 MMcf/d as compared to 4 MMcf/d in1993. Questar estimated that production could reach 250 MMcf/d by2002. M.L No. 40 and No. 41 are both running at full capacity, andQuestar believes additional facilities are needed to satisfy “thepresent and projected demand” for additional transportationcapacity.

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.

In early 1999, Questar held an open season to determine thepossible market demand for the overall pipeline. 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.

John Norris

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