Burlington, ECT to Build Wind River Gathering
Burlington Resources has joined forces with Enron Capital &
Trade Resources Corp. in a gas gathering partnership that will
serve the Wind River Basin in Wyoming, where processing and
transportation constraints have held back production in recent
years. The two companies have formed Lost Creek Gathering Co.
L.L.C. to build a new 124-mile, 24-inch diameter wet gas gathering
header from the Madden Field in central Wyoming to a processing
plant located near Wamsutter, WY.
The processed gas will be delivered into Colorado Interstate
Gas' and Wyoming Interstate Co.'s mainline transportation systems.
First deliveries are expected in the first quarter of 2000.
Burlington will retain a 65% operating interest in the partnership,
while ECT will hold the remaining 35% share.
"This project will provide increased gathering flexibility in
central Wyoming. It is of particular interest to BR because it
complements and enhances our future development plans at the Madden
Field," said Burlington CEO Bobby Shackouls.
Over the next year, sharp production growth is expected out of
the Wind River, particularly the Madden Field. Gas coming out of
Madden is expected to rise to 240 MMcf/d by year-end from only 130
MMcf/d in 1998 and about 105 MMcf/d in 1997, according to
Burlington spokesman. Burlington holds about 37% of that gas, most
of which is coming from the deep Madison formation and the
shallower Lower Fort Union and Lance formations. The gas coming out
of the deeper formations requires removal of carbon dioxide and
hydrogen sulfide at the Lost Cabin Gas Plant, which Burlington
plans to expand to handle 130 MMcf/d of gas by the fourth quarter.
Kevin Hannon, president and COO of Enron Capital & Trade said
the partnership is a "unique opportunity to combine the strengths
of the largest natural gas marketer in the U.S. and one of the
largest independent gas producers in the U.S. We look forward to
working with natural gas producers in the Wind River Basin to
provide this much needed gathering service and access to
competitive markets." Enron will be responsible for marketing all
the capacity on the gathering system that is not used for
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