Colorado

Evergreen Resources, the largest producer in the Raton Basin ofColorado, got a lot larger yesterday. The company bought 153 Bcf ofcoal-bed methane reserves in the basin from a subsidiary of KansasCity Power & Light for $176 million, or about $1.15/Mcf.

Renowned hurricane forecaster Dr. William Gray and his team ofsoothsayers at Colorado State University have scaled back theirforecast made in early June for the 2000 hurricane season, butstill expect it to be more active than average.

Renowned hurricane soothsayer Dr. William Gray and his team atColorado State University have scaled back their forecast for thehurricane season but still expect the season to be more active thanaverage. Seven rather than eight hurricanes are expected now andonly three of them are expected to be intense rather than the fourexpected in the group’s prior forecast on June 7. In round numbers,the August forecast is for three named storms, two hurricanes, andone intense or major hurricane.

Public Service Co. of Colorado will limit production behindBaxter Point to 3 MMcf/d April 24-May 7. Affected producers arebeing notified.

Public Service Co. of Colorado and Cheyenne (WY) Light Fuel andPower will continue to refuse imbalance payback gas at leastthrough today’s gas day. If operational constraints from warmregional weather continue, the two utilities said, the paybackrestriction will be extended.

Questar Pipeline Co. and Colorado Interstate Gas (CIG) havesigned an agreement to jointly own a proposed 75-mile interstatenatural gas pipeline extending from the Price Area in eastern Utahto a proposed interconnect with Kern River Gas Transmission Co.(Kern River) near Elberta, UT. The line would have a minimumcapacity of 250,000 Dth/d and would begin service in winter20001-2002.

Questar Pipeline Co. and Colorado Interstate Gas (CIG) havesigned an agreement to jointly own a proposed 75-mile interstatenatural gas pipeline extending from the Price Area in eastern Utahto a proposed interconnect with Kern River Gas Transmission Co.(Kern River) near Elberta, UT. The line would have a minimumcapacity of 250,000 Dth/d and would begin service in winter2001-2002.

Public Service Co. of Colorado and Cheyenne (WY) Light Fuel& Power will implement Operational Balancing Procedures in allareas effective Saturday and Sunday. The effect is to requireshippers to cut nominations to a level that does not exceedestimated daily consumption taken from a previous “Model Day” (inthis case July 4, 1999). Imbalance paybacks will not be allowedduring the OBP period.

Complementing its integrated operations in Northeast Utah andwestern Colorado, Coastal Field Services, Coastal’s midstreamdivision, bought the Bluebell and Altonah gathering systems andprocessing plants located in the Duchesne and Uintah counties ofUtah. Financial terms were not disclosed.