As part of an asset sales program, CMS Energy Corp. subsidiaryCMS Field Services sold 49% of its formerly 100% interest in theNorthern Header gathering system to affiliates of Enron Corp. andNorthern Border Partners. CMS, Enron and Northern Border Partnersplan to expand the gathering system, renamed Bighorn Gas GatheringLLC, to serve a broad area of northeastern Wyoming’s Powder RiverBasin. CMS Field Services will retain a majority interest inBighorn and act as project manager.

CMS sold 49% of the system for $65 million. Northern Borderbought 39%, and Enron bought 10%.

Bighorn, which began service in December, serves the northernpart of the Powder River Basin and is capable of gathering morethan 250 MMcf/d of coal bed methane gas. It connects to the FortUnion Gas Gathering System and other U.S. market areas viainterstate pipelines connected to Fort Union. Bighorn consists of60 miles of large-diameter pipe with 40 additional miles underconstruction. It currently has gathering agreements with CMS Oiland Gas Co. and Pennaco Energy Inc.

“We’ve embarked on a program to sell at least $500 million worthof assets by the end of the first quarter to improve our balancesheet,” said CMS spokesman Kelly Farr. “The Northern Header reallyis a strong asset in a growth area of the company, so we limitedthis asset sale to 49% because we want to retain a strong presencein one of the hottest natural gas production plays in the country.We think that we’ve strengthened the Northern Header with theaddition of Enron and Northern Border, which will provide not onlya broader ownership base of the gathering system but access to moreproducers in the Powder River Basin.”

Dave Presley, president of CMS Field Services, said the PowderRiver Basin is “one of the most exciting new gas supply basins inthe U.S.”

“This venture will enhance Enron’s existing gathering, marketingand financing capabilities in the southern region of the PowderRiver Basin and allow us to expand our services to producers in thearea,” said Cliff Baxter, Enron North America CEO. “In addition,our participation in this system will strategically position Enronto take advantage of future opportunities in one of the most activeproducing basins in the U.S.”

Farr said this asset sale is the second of more sales to comethat will total at least $500 million. “The first was a Michiganland sale, which we did not announce, which happened in December.

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