Wild Goose Storage, California’s first merchant natural gasstorage facility, is set to begin operations April 1, at the sametime the state’s second merchant storage project gets a publicairing of its 18 Bcf proposal.

The California Public Utilities Commission (CPUC) is scheduledto act March 18 on market-based tariffs for Wild Goose Storage. Theproject’s Canadian backers are being cautious in their publicdiscussion about the numbers of customers and volumes they haveunder contract for the field, which is using part of a depleted drygas field 50 miles north of Sacramento.

“Everything is looking very good,” said Ben Ledene, marketingvice president for Alberta Energy Corp., backer of the new storagefield. “We’re very pleased from what we have seen from thereservoir and the facilities. We’re in the process of providingtraining sessions for our customers so they understand all theservices available.

“We really haven’t had any surprises. It has gone much betterthan anybody could have thought it would. It is working out atleast as well as expected if not better.”

Nevertheless, Ledene hinted that the facility isunder-subscribed for its initial months of operation, but hestressed that they want to make sure they provide high qualityservice to all of their customers during the initial months ofstart up and “working out the bugs.” Ledene described it as”contracting a bit conservatively” for the first year.

Offering services to a variety of utilities, marketers, shippersand large industrial customers, Wild Goose provides 14 Bcf ofinventory, with firm withdrawal capability of 200 MMcf/d andinjection of 80 MMcf/d through four wells (one vertical and threehorizontal). An 18-inch-diameter, four-mile pipeline links thefacility to Pacific Gas and Electric Co.’s transmission pipeline inthe area. The new, permanent compressors have been installed andare expected to be started by mid-March, Ledene said. Temporarycompressors used this winter to test injection and withdrawal arenow being removed. Metering, dehydration and water removalequipment all will be tested this month in preparation for theopening.

“We expect that customers will have us injecting gas during thefirst three or four months,” Ledene said. “They probably won’t haveus withdrawing gas at first, but you never know.”

Ledene added Wild Goose is looking at other possible sites inCalifornia and elsewhere in the U.S. We’re looking around, andthere are lot of opportunities.”

For the $80 million Lodi storage facility sponsored by WesternHub Resources, the CPUC is holding public meetings this week tosettle environmental issues. This second merchant storage facilityfor California will use a depleted underground natural gas field,located five miles northeast of Lodi, to store 18 Bcf. It alsoplans to build a compression station. The proposed storage facilitywould have a 6 Bcf working capacity and 200 MMcf/d injection andwithdrawal capacities. All of those numbers may double if there issufficient customer interest between now and when the project gainsCPUC approvals, Western Hub said.

The company set Oct. 1 as its goal for the facility’s CPUCcertification. The commission said it is too early to give atimetable. One contentious issue is the planned 24-inch-diameter,30-mile pipeline intended to hook in with PG&ampE’s gastransmission operations. It will run through private property, andmany landowners have objected.

Rich Nemec, Los Angeles

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