The Federal Energy Regulatory Commission last Wednesday gave Questar Pipeline the go-ahead to sell pipeline facilities in Wyoming to affiliate Overthrust Pipeline for an estimated $6.07 million.
The abandonment and certificate order cleared the way for Questar to sell to Overthrust its Tie Line 90 (TL 90) facilities, which consist of a 20.3-mile, 20-inch diameter pipeline that extends from its Eakin Compressor Station to an interconnection with Kern River Gas Transmission’s Muddy Creek Compressor Station in Wyoming, as well as a 10-inch diameter lateral that runs from the Kern River interconnect at the end of Line TL 90 to the Western Market Center interconnection. The facilities, which were built in 1995, are located in Uinta and Lincoln counties, WY.
With the acquisition of these facilities, Overthrust said it plans to install new delivery and receipt points between Questar and Kern River under its blanket certificate to permit Questar and its shippers to access markets at the Opal trading hub in Wyoming. Questar said that the transaction will help to alleviate constraints on certain segments of its system.
“The abandonment will increase Questar’s system flexibility and provide access to new markets. Likewise, Overthrust will use the acquired lines to increase its system capacity, improve operating flexibility and access additional markets. The proposal will allow both interstate pipelines to improve their operational efficiencies without constructing new facilities. Therefore, it is in the public interest to approve the proposal,” the FERC order said [CP06-395].
Questar provides transportation service to 10 firm capacity shippers with primary delivery points on Line TL 90. Following the transfer, Questar’s customers will continue to receive gas transportation services using Questar capacity on the Overthrust system without incurring additional charges, according to the order.
Questar is required to notify FERC of the transfer of the facilities within 10 days of the action taking place.
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