Major producers have asked FERC for an immediate injunction and expedited technical conference to bar Rockies Express Pipeline (REX) from carrying out hydrostatic testing on its line in September, a move that could shut in half of the Rockies natural gas flowing on the pipeline at the height of hurricane and storage injection seasons.

Citing a news report, ConocoPhillips, Shell North America LP and Yates Petroleum Corp. told the Federal Energy Regulatory Commission that “analysts have estimated the REX test could affect 900,000 Mcf/d out of 1.25 Bcf/d flowing on the pipeline.” And while a portion of the displaced gas could be rerouted, analysts calculate that about 500,000 to 800,000 Mcf/d would be stranded in the Rockies, they said.

“This will short the U.S. natural gas market by approximately 18 Bcf during the peak of the hurricane season” if the REX test occurs as planned between Sept. 3 and Sept. 26, the producers said. They urged FERC to respond to their request by the proposed Sept. 3 shutdown date [CP08-460].

“The Indicated Shippers [producers] believe that the devastating impact on the REX shippers and the natural gas industry can effectively be eliminated by delaying the testing for a period of 60 to 90 days. The proposed September time period coincides with the peak of the hurricane season in the Gulf of Mexico, and with the storage injection season for most LDCs [local distribution companies].” The delay proposed by the shippers would put the downtime in the heating season when at least some of the excess gas could be used locally in the Rockies..

The REX pipeline plans to conduct the hydrostatic testing on a segment of its mainline between Steele City Compressor Station in Gage County, NE, and Turney Compressor Station in Clinton County, MO. REX said the 26.6-mile leg of the pipeline did not get tested at a high enough pressure to allow for the maximum allowable operating pressure of 1,480 psig. It added that this will be necessary when the REX-East segment of the line is placed in service to Lebanon, OH, in January 2009.

Hydrostatic testing will require all of the natural gas to be removed from the pipeline, after which the pipe is filled with water, at a designated pressure, for additional testing.

“During the testing period, no service will be available at either the ANR [Pipeline] Brown or the [Panhandle Eastern Pipe Line] Audrain delivery points. REX allowed shippers holding primary capacity at these points to permanently redesignate their primary rights to other points…But this provided only minimal relief because it was dependent on capacity being available at those other points…The net effect was only to reduce the impact on shippers from 950,000 Mcf/d down to 750,000 Mcf/d,” or about 50% of the REX mainline capacity, the producers said.

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