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Open Season Begins for Capacity on Proposed Texas Gas Laterals

Boardwalk Pipeline Partners LP's Texas Gas Transmission LLC is conducting a binding open season through Jan. 24 for capacity on its proposed Fayetteville and Greenville laterals that would provide transportation for producers operating in the Fayetteville Shale play in Arkansas.

The proposed Fayetteville lateral will receive gas at multiple points in the Fayetteville Shale play in central Arkansas and will deliver the gas to new and existing markets served by Boardwalk's existing and planned pipelines, as well as to multiple interstate pipeline interconnects on the proposed Greenville lateral. The laterals would provide Fayetteville Shale producers with the ability to access markets on Texas Gas as well as markets (Midwest, Southeast and Northeast, along with Henry Hub) served by interconnecting pipelines.

Both laterals are expected to be in service in early 2009. The Federal Energy Regulatory Commission already has begun an early review of Texas Gas Transmission's proposed Fayetteville and Greenville laterals under the agency's pre-filing process of the National Environmental Policy Act (see Daily GPI, Jan. 3). The Boardwalk Pipeline subsidiary, in asking to participate in the pre-filing process, said it planned to file an application in late June seeking FERC approval of the proposed laterals by May 2008.

Construction of the laterals is supported by a precedent agreement for firm transportation with Southwestern Energy Services Co., a wholly owned subsidiary of Southwestern Energy Co., a leading developer of the Fayetteville Shale.

The Fayetteville lateral will be a 167-mile, 36-inch diameter pipeline with an initial design capacity of 800,000 MMBtu/d and a maximum capacity of 1.1 Bcf/d. It will originate in Conway County, AR and will proceed east through the Bald Knob, AR area to an interconnect with the Texas Gas pipeline in Coahoma County, MS. The Greenville lateral will be a 98-mile pipeline with an initial design capacity of 750,000 MMBtu/d. It will originate at Texas Gas' mainline near Greenville, MS and proceed east to the Kosciusko, MS area.

During the open season, Texas Gas said it also is considering an expansion of its delivery capacity to various pipelines, including, but not limited to, the addition of compression at or near Whitesville, KY, to facilitate deliveries to Midwestern Gas Transmission and the addition of compression at or near Eunice, LA, to provide additional deliveries to markets in South Louisiana, including Transcontinental Gas Pipe Line, Florida Gas Transmission and the Henry Hub.

Shippers seeking more information on the laterals or open season materials should contact Kathy Kirk at (713) 544-6190 or (270) 688-6900; David Moseley at (270) 688-6818; David Lytle at (713) 544-6081; or Bobby Mason at (713) 544-6034. Information about the open season also is available on Texas Gas' website at http://www.gasquest.txgt.com.

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