FERC last week ruled that KN Wattenberg Transmission LLC’s entire interstate pipeline system is gathering in nature and thus exempt from Commission jurisdiction.

It also gave its blessing to the sale of KN Wattenberg, a wholly-owned subsidiary of Kinder Morgan Inc., to Kerr-McGee Rocky Mountain Corp., although its approval was not required. Kerr-McGee, a key producer and gatherer in the Denver-Julesberg Basin, has signed a purchase agreement to buy all of Kinder Morgan’s interest in KN Wattenberg, which has pipeline facilities in the basin.

KN Wattenberg’s system consists of 6.3 miles of 12-inch diameter pipe, 11.9 miles of 16-inch diameter pipe, 33.5 miles of 20-inch diameter pipeline, 6.3 miles of 24-inch diameter pipe and five compressor stations that have a combined 38,932 horsepower of compression.

KN Wattenberg delivers 193 MMcf/d of wet gas to processing plants owned and operated by BP-Amoco, North American Resources Co. and Duke Energy Field Services LP.

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