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Kaiser-Frontier Midstream Ready to Place Final Segment of Silo Pipeline Project Into Service

Kaiser-Frontier Midstream (KFM), a unit of Tulsa-based Kaiser-Francis Oil Co., has asked FERC for authorization to place into service the southern segment of its three-segment Silo Pipeline Project in Wyoming and Colorado.

The project's northern segment, a 6.8-mile, six-inch diameter pipeline extending south from the Silo Gas Processing Plant in Laramie County, WY, and the middle segment, a 9.9-mile, six-inch diameter pipeline extending south from the terminus of the northern segment, were both placed into service on April 21, KFM said.

The southern segment is a new eight-inch diameter pipeline extending 14.5 miles from the terminus of the middle segment to an interconnection in Weld County, CO, with facilities of Kinder Morgan Inc.'s Wyoming Interstate Co. Construction of the southern segment and hydrostatic testing have been completed, and rehabilitation and restoration activities are under way, the company said.

KFM asked the Federal Energy Regulatory Commission to grant authorization effective on June 27.

FERC approved the pipeline project last August [CP15-26] (see Daily GPIAug. 24, 2015).

KFM owns and operates approximately 75 miles of non-FERC jurisdictional gathering pipelines carrying its unprocessed gas from the Silo Field wellheads east of Laramie. Kaiser-Francis owns various oil and gas-producing wells in the Silo Field.

Most of the gas handled by KFM is from its parent's operations, and the company told FERC it does not intend to transport third-party gas in the new lateral, so it was granted waivers to various usual FERC requirements, such as firm and interruptible transportation services, since those services relate only to open-access pipelines.

In its FERC application, KFM said that production in the Silo Field is expected to increase beyond the needs of its main current customer, local utility Cheyenne Light, Fuel & Power.

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