FERC has issued a favorable environmental assessment of Blue Sky Gas Storage LLC‘s proposal to build a natural gas storage project in Logan County, CO, with proposed interconnects with the Rockies Express, Trailblazer and Kinder Morgan Interstate pipelines and access to Cheyenne Hub by backhaul on Trailblazer. The Blue Sky storage facility, which would be located north of Sterling, CO, would have working capacity of 4.4 Bcf, with the potential for expansion subject to approval by the Federal Energy Regulatory Commission and market demand. It would be capable of delivering gas at a rate of 100 MMcf/d and receiving gas for injection at a rate of 100 MMcf/d. The central Rockies currently lacks sufficient storage capacity and the Blue Sky project would be an important addition to the market, said Blue Sky, an affiliate of Linear Energy Management LP, a privately owned midstream pipeline company.

The U.S. Department of Energy (DOE) and the Interstate Oil and Gas Compact Commission (IOGCC) have signed an agreement aimed at improving cooperation and collaboration in the areas of oil and natural gas supply, delivery, and climate change mitigation. The memorandum of understanding provides the platform for DOE and the IOGCC to jointly: identify issues of mutual interest; champion actions to enhance energy security and environmental protection; facilitate the exchange of information and expertise on technological advancements and national energy programs and policies; enhance communication; and create an ongoing means of consultation. The IOGCC is a 38-state oil and natural gas compact. The agreement “forges critical linkages necessary for enabling the responsible development of the nation’s oil and natural gas resources and the timely deployment of advanced technologies to capture and permanently store carbon emissions from power plants and other large industrial sources that may contribute to global climate change,” said DOE Assistant Secretary for Fossil Energy James Markowsky.

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