Powder River Basin gas producers may be about to get a moredirect route to Midwest markets. Northern Border Pipeline hasreleased plans to build a new 325-mile greenfield pipeline fromMcCabe, MT, to Gillette, WY, to tap the rapidly growing productionin the Powder River, which is estimated to hold between 10 and 30Tcf of gas.

The basin’s rapid production growth has captured the attentionof the industry, with numerous proposed pipelines, includingseveral new interstate plans that would bring gas to theMidcontinent gas grid. Northern Border’s project, called the BisonPipeline, would add a new route out of the basin for between375,000 and 500,000 MMBtu/d of production starting in November2003. The pipeline is holding an open season on the proposalthrough Dec. 5.

Receipt points are proposed with Bighorn, Fort Union GasGathering, MIGC and Thunder Creek Gas Services. A bi-directionalinterconnect accessing Williston Basin Interstate Pipeline’s Bakerstorage field also is proposed.

The connection with Northern Border will provide Powder Riverproducers with direct access to several local distributioncompanies, including Montana-Dakota, Alliant Interstate Power,MidAmerican Energy, Nicor Gas, People Gas and Nipsco. It alsoprovides access to ANR Pipeline, Midwestern, NGPL, Northern andVector.

The projected recourse rate is 26 cents/Dth/d, but a negotiated10-year demand rate cuts 4 cents off that. The pipeline is offering”mileage-sensitive rates,” which are expected to allow a shipper totailor supply access and optimize transportation value.

Northern Border plans to hold a briefing on the project inDenver on Nov. 14. For more information, contact project directorPaul Miller in Omaha, NB, at (402) 398-7758 or James Hoff in Denverat (303) 575-6475, or see the pipeline’s Web site atwww.northernborderpartners.com.

Rocco Canonica

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