FERC yesterday granted certificates, subject to conditions, toCentral New York Oil and Gas Co. (CNYOG) to proceed with theconstruction of its Stagecoach storage project and to Tennessee GasPipeline to build a lateral connecting its system with the storagefacility.

The certificate gives CNYOG the go-head to develop itsStagecoach Storage Field Project at an existing gas-producing fieldlocated in Tioga County, NY, and Bradford County, PA. The storageproject will have an initial working gas capacity of up to 13.6Bcf, and will be capable of supporting withdrawals of up to 500MMcf/d and injections of up to 250 MMcf/d. The maximum storageinventory in the Stagecoach Storage Field cannot exceed 16.75 Bcfwithout prior FERC approval.

The project calls for the construction and operation of up to 24storage injection/withdrawal wells, and two new observation wells;a 25,000 horsepower compressor station; 14 meter stations andisolating valves along the gathering pipeline system; a 4.7-mile,12-inch diameter gas pipeline (Twin Tier Lateral) to an electricgeneration plant; and a 1.5 mile non-jurisdictional 115 kilovoltelectric transmission line to a point of interconnection with aline owned by New York State Electric & Gas Corp.

FERC approved CNYOG’s request for market-based rates for firmand interruptible storage services provided by the Stagecoachproject. However, it said the rates were subject to reexaminationin the event CNYOG expands its storage capacity beyond the amountauthorized by the Commission.

In the same order, the Commission also gave a thumbs-up toTennessee to construct its companion project — a 23.7-mile,30-inch diameter lateral line that would connect the storageproject to its 300-Line. The so-called Stagecoach Lateral will havea capacity of 500 MDth/d. The estimated cost of the project will be$81.3 million, the pipeline said.

FERC directed Tennessee to execute firm contracts for amountsequal to those in its precedent agreements before it can beginconstruction of the proposed lateral. It further allotted bothTennessee and CNYOG one year to complete the construction of theirprojects.

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