Totem Plans to Be CO's 1st Independent Storage
Brandt Energy, a former partner in the Wild Goose Storage
project in California, is planning the development of Colorado's
first independent gas storage facility. The Totem Gas Storage
Project is to be located about 12 miles east of the Denver Airport
in a depleted gas field in the J Sand reservoir of the Denver
Julesburg Basin. Brandt, Star Natural Gas, Renegade Oil & Gas
and Fairchild, Ancell & Wells make up the development team for
the project, which will target growing power generation load and
marketers serving customers along the Front Range.
There's a dearth of storage in the state and what is there is
either under contract or being used by the local utility, said
Brandt Energy President Michael G. Wright.
Totem will be one of only six storage fields in the state and
will have one of the highest deliverability rates of any of the
"We have pretty good permeability and porosity, and we're able
to come up with a deliverability of over 200 MMcf/d," said Wright.
"It will have to reach about half of the 9 Bcf of working gas
capacity before deliverability starts falling off. One of the
things we'll be able to do is to inject and withdraw gas on any day
at any point in the year, which is different than the other
reservoirs, which have active water drives. There's a requirement
that they have to get their gas out every year otherwise they may
lose it behind the water." He said Totem will have sufficient
injection capability to provide a minimum of two cycles per year.
There will be a greater need for the flexibility Totem will
provide as gas and electric competition heats up in the state,
Wright noted. "Any marketer, gas supplier or trader that plans on
supplying small commercial or residential loads is going to have to
have swing and balancing capabilities.
"In addition to that, the power market is continuing to grow in
Colorado," he noted. In response to a shortfall in power supply
last summer and resulting brownouts, Public Service of Colorado
issued a request for proposals for new generation capacity and a
number of peaking gas-fired plants are being developed and are
going to be in service in about a year.
Totem is expected to be in service in the second quarter of 2001
with connections to Colorado Interstate Gas and PSCo. Wright said
Totem has filed an application with the Colorado Oil and Gas
Conservation Commission for approval to convert the field into a
storage facility and will apply with the Colorado Public Utilities
Commission for market-based rates. Totem currently is holding an
informal open season. For details call Wright at (214) 954-1886, or
email him at email@example.com.
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