Wyoming Interstate Co. (WIC), a pipeline subsidiary of El Paso Corp., said Thursday it has received binding bids for 350,000 Dth/d of transportation capacity on its proposed Piceance Lateral expansion project as part of a recent open season, and is seeking to determine whether there is additional shipper interest that would warrant increasing the scope of the project.

The project calls for the construction of a 143-mile, 24-inch diameter pipeline from the Piceance Basin in northwestern Colorado to WIC and Colorado Interstate Gas (CIG) near Wamsutter, WY. Natural gas eventually would be delivered to the Cheyenne Hub in northeastern Colorado, where it could flow into pipelines taking Rocky Mountain supplies eastward, including the 380-mile, 560,000 Dth/d Cheyenne Plains pipeline that is now under construction.

“The Piceance Lateral expansion represents the much-needed development of critical infrastructure for one of the most prolific natural gas supply sources in the United States,” said James Cleary, president of El Paso’s Western Pipeline Group.

“This expansion and the Cheyenne Plains pipeline project demonstrate our commitment to providing transportation solutions for producers developing natural gas supplies in the Rocky Mountain region.”

CIG’s $425 million Cheyenne Plains pipeline, when completed, will provide a direct route to Midcontinent markets for rapidly growing Powder River Basin coalbed methane production, gas supply from the Jonah Field in the Green River Basin in western Wyoming and other production from the Piceance Basin. The project has been targeted for in-service in August 2005.

WIC said it already has begun the pre-filing process at the Federal Energy Regulatory Commission for its proposed lateral project, during which the company will work with the Commission to address environmental, permitting and other issues before it formally files its application. The pre-filing process will pave the way for expedited review of WIC’s application, which it plans to file this October, it said.

The company said it expects to begin construction of the lateral in September 2005, and have it in service by December 2007. Parties interested in obtaining capacity on the lateral can contact Craig Coombs at (719) 520-4387.

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