Believing in the saying that “if at first you don’t succeed, tryagain,” El Paso began a new open season Friday to solicit interestin firm service agreements to move gas on an expansion of theBondad Line in the San Juan Basin. A previous attempt at a Bondadexpansion ultimately broke down after FERC rejected some of thetariff provisions last year, leading the primary expansion shipperto withdraw from the project and FERC to vacate its projectcertification (see Daily GPI, Jan. 7, 1998; Oct. 19, 1998; Dec. 11,1998; and Jan. 18, 1999).

El Paso still plans on replacing turbines at Bondad Station andadding in the neighborhood of 116 MMcf/d capacity to Blanco, JerryStrange, director of transportation marketing, told Daily GPI Friday. But under last year’s proposal, the incremental capacitywas earmarked only for the shippers who agreed to pay forconstruction costs.

In the new plan, El Paso is still seeking agreements forunderwriting the expansion, but sponsoring shippers must share theincremental capacity with other firm shippers on a pro rata basis,Strange said. That meets FERC’s primary objection to the originalproject, he said. A new wrinkle in the current open season is thatEl Paso also is offering access to Northwest Pipeline at Ignaciofor shippers who desire that, he added.

The Bondad Line, which runs from the Northwest terminus atIgnacio in southwest Colorado to the Blanco Hub in northwest NewMexico, has an existing capacity of 567.7 MMcf/d. The line hasoften been over-nominated in the past, leading some San Juan Basintraders to refer to it sarcastically as “Bondage.”

The current open season will run through March 12. Subject totimely FERC approval of the new project, El Paso expects tocomplete it by the second quarter of 2000. Call Strange at (915)496-3139 for information.

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