In response to the “urgent” need for additional gas supplies toserve California’s electric generation markets this summer, KernRiver Gas Transmission has announced an emergency open season for135,000 Dth/d firm transportation service expected to be availableby July 1.

“It would mean the fast track through FERC and getting all theenvironmental permits in three-and-a-half months,” said spokeswomanBev Chipman. “It would be quicker than ever before. We’ve alreadyspoken with FERC. They are very interested, and we are veryinterested to entertain this possibility.”

FERC Chairman Curt Hebert told the House Energy and Air Qualitysubcommittee last week that the Commission was committed to movingrapidly on any projects designed to move gas to California.

Williams, which already has one expansion on file and another onthe way, is proposing this project as an emergency solution toCalifornia’s power crisis. The $81 million project would befinalized by April 2 based on whether the necessary permits andlicenses for construction have been obtained. Williams could cancelthe project if expansion capacity is not fully subscribed.

A portion of the emergency facilities may be incorporated intoWilliams’ 2002 California Expansion Project, which is currently onfile at FERC, or its 2003 New Generation Expansion Project, whichrecently underwent an open season. Several temporary facilityinstallations would be removed once the other two permanentexpansions were in place and in service.

“In response to FERC and to the state of California we havelocated available compression equipment that we could have on sitenearly immediately, and we’ve come up with a proposal to placethose compression units on the very same sites we will be using forour permanent expansions,” said Kirk Morgan, director of businessdevelopment for Williams Gas Pipeline West. “FERC already has anapplication in front of them that deals with the site locations.These are different units so there are different air qualityimpacts, but we’re hoping that those sites can be permitted veryexpeditiously….” Williams said the facilities would includemodifications to three existing compressor stations, installationof three new compressor stations and expansion of a meter station.

The open season only runs through noon Thursday. There are twoblocks of capacity that will be available starting July 1: one for110,000 Dth/d that runs through April 30, 2002 and another for21,000 Dth/d that runs through April 30, 2003. Shippers interestedin service should submit a request for service that includes theshipper’s commitment to accept and Williams’ commitment to providefirm transportation service that includes, among other things, anexecuted binding precedent agreement and a statement confirming theability to meet Williams’ creditworthiness in its FERC gas tariffand policy. Other requirements can be found on the web site athttps://www.williams.com or by contacting Bev Chipman at (801)584-7048.

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