Natural Gas Pipeline Company of America has proposed expanding a portion of its existing system capacity in southeastern New Mexico to increase deliveries to California. Natural wants to add new compression on a leased basis to its Indian Basin Lateral and other facilities to make deliveries of up to 42,000 Dth/d by the fourth quarter of 2001 through Transwestern Pipeline in Eddy County, NM.

Eligible receipt points would include the Indian Basin Gas Plant and all other physical points upstream of Natural’s interconnection with Transwestern. Potential shippers on the project would be responsible for making their own arrangements for transportation on Transwestern.

Natural plans to move “promptly” on the proposal, following the Federal Energy Regulatory Commission’s recent order [Docket No. EL01-47-000] regarding “Removing Obstacles to Increased Electric Generation and Natural Gas Supply in the Western United States.”

Open season began April 5 and will close at 5 p.m. Central Time on April 19. Shippers interested in securing firm transportation capacity on the project have to complete an executed Precedent Agreement. The maximum reservation rate for the Permian receipt zone to Permian delivery zone transport is $3.35/Dth. Bids with a rate of less than $2.48/Dth will not be accepted. The term is for a minimum of three years unless there is sufficient shipper demand for terms of more than three years.

Potential shippers may submit Offer Sheets with executed Precedent Agreements by registered or certified mail, courier, fax or hand delivery. For more information, contact Duane Kokinda at (713) 369-9409 or send a fax to (713) 369-9365.

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