FERC yesterday gave Wyoming Interstate Co. Ltd. (WIC) thego-ahead to construct and operate the Medicine Bow Lateral thatwould connect its system to significant coal-bed methane gasreserves in Wyoming.

The project calls for the construction of a 149-mile, 24-inchgas transmission line with the capability to move about 260 MDth/dof gas reserves from the Powder River Basin in Wyoming and Montanato downstream markets. The lateral would connect WIC to a newgathering header in the basin, which is being built by a consortiumof five companies – including Colorado Interstate Gas, BarrettResources, CMS Continental, Western Gas Resources and Enron Capitaland Trade.

Before entering the WIC system, the unprocessed gas would betreated in a carbon dioxide extraction facility, which is beingbuilt by Western Gas Resources (WGR). The proposed lateral wouldconnect to the outlet of the treatment plant, making it an”integral and significant element” in the development of reservesin the region, WGR noted. The $78 million lateral project istargeted for completion by Dec. 1 of this year.

Powder River producers urged the Commission to approve theMedicine Bow Lateral at Wednesday’s meeting, saying that anyfurther delay would force them to shut in production, given thatall the existing lines out of the basin already were running atfull capacity.

The Commission approved the project despite the considerableenvironmental concerns of landowners.

©Copyright 1999 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.