Brent E. Kitchen
Wyoming Pipeline Authority Meeting
May 25, 2004
Piceance to Kanda Piceance to Kanda ExpansionExpansion
In the HeartIn the Heart
of the Rockiesof the RockiesIDAHO
UTAH
WYOMING
COLORADO
Evanston
Preston
OVERTHRUST
GREEN RIVER
UINTA
Rock SpringsSKULL CREEK
SAND WASH
PICEANCE
SAN JUANPARADOX
Long Beach
NEVADA
CALIFORNIA
Other pipeline system
Principal producing basins
Questar Pipeline system
Questar Gas system
Questar Gas cities served
Salt Lake City
Southern Trails
Overthrust
Eastern SectionWestern Section
Questar Pipeline
TransColorado
Piceance to Kanda Expansion
Northern System
Southern System
Clay Basin
Kanda
Greasewood
Piceance to KandaPiceance to Kanda
Open season from Friday, April 30 until
noon MDT on Wednesday, June 2, 2004
Capacity options from 300,000 to 450,000
Dth/d
Autumn 2006 anticipated in-service date
Planned FacilitiesPlanned Facilities
170 miles of 24-inch pipe Compression between 7,000 to 52,000 HP
– Depending on suction pressures and requested volumes
Open Season results will determine optimal design
Electronic Route Maps
Available on Request
Please contract your QPC
Marketing Rep
RatesRates300 MMCFD 450 MMCFD
ASSUME 1,000PSI SUCTION AT
GREASEWOOD
ASSUME 600SUCTION AT
GREASEWOOD
ASSUME 1,000 PSI
SUCTION AT
GREASEWOOD
ASSUME 600 PSI
SUCTION AT
GREASEWOOD
LEVELIZED
RESERVATION
RATE
($/DTH/MONTH)
$8.28337 $9.43920 $7.06670 $8.19212
100% LOAD
FACTOR RATE 1/($/DTH)
$0.275 $0.313 $0.235 $0.272
OTHER USAGE CHARGE, ACA, FUEL REIMBURSEMENT AND ANY OTHER APPLICABLE
CHARGES WILL BE IN ADDITION TO THE RESERVATION RATE.
1/ This rate includes Questar's usage fee of $0.00267 per Dth
Any additional questions regarding the necessary economic hurdle rates for the projectshould be directed to the marketing representatives listed above.Please contact your QPC Marketing Rep. with
questions regarding these rates
300,000 Dth/d 450,000 Dth/d
Potential Northern System Potential Northern System Receipt PointsReceipt Points
West of Kanda
– Any points, including but not limited to Green
River and Overthrust Basin production
East of Kanda
– Any points, including but not limited to
Desolation Flats and Dripping Rock May require additional pipe and/or compression
Potential Southern System Potential Southern System Receipt PointsReceipt Points
West of Greasewood
– Any points, including but not limited to Ferron
Coal bed Methane area, Uintah and Piceance
Basin production
East of Greasewood
– May require additional pipe and/or compression
OVERTHRUST
GREEN RIVER
UINTA
SKULL CREEK
SAND WASH
PICEANCEFERRON
Principal Basins OverthrustGreen RiverSkull CreekSand WashUintaPiceanceFerronSecondary BasinsPowder RiverWamsutterBig HornWind RiverSan Juan
Questar Pipeline System
Principal Producing Basins
UTAH
WYOMING
COLORADO
Potential Delivery PointsPotential Delivery Points
Kern River Gas Transmission Company Northwest Pipeline Corporation Colorado Interstate Gas Company Southern Star Pipeline Wyoming Interstate Gas TransColorado Gas Transmission Company Overthrust Pipeline Company
Potential Delivery Points Potential Delivery Points Cont’d.Cont’d.
Local Distribution Companies
– Questar Gas Company
– Public Service Company of Colorado
– Rocky Mountain Natural Gas
– Greeley Gas Company
Clay Basin Storage
Several existing and planned power plants
Advantages to WyomingAdvantages to Wyoming
Enhances Kanda as hub and pricing point
Promotes the production of Wyoming gas for
delivery into this new pipeline
Encourages the development of new facilities in
Wyoming (for example, Questar’s storage
projects)
Provides access to additional gas supplies for
southwest Wyoming gas consumers
Submission of BidsSubmission of Bids Bids are binding Must include the following:
– Volume (Dth/d) with desired receipt and delivery point(s)
– Max reservation rate that shipper will pay Usage, ACA, FGRP, and other applicable charges will be
additional– Minimum 10-year term
Must meet Questar’s economic hurdle rates Must be received by noon MDT on Wed., June
2, 2004
Bid Review ProcessBid Review Process
Bids ranked based on present value calculation (PVC) as follows:
(Monthly Reservation Charge) x [1-(1+ i)-n ] = Present Value
( Per Unit ) [ i ] Per Unit
Where: i = interest rate per month, i.e., overall rate of return divided by 12 months
n = term of the agreement, in months
Review and Notification ProcessReview and Notification Process
Priority given to bids that optimize capacity and operating efficiency
If equal PVC, capacity will be allocated based on date (not time) of bid receipt– Bids received on earlier dates will receive priority over
bids received on later dates– Later bids get any remaining capacity
Award determination and notification to bidders by July 15, 2004
Lynn Arnold (801) 324-2941
Brent Kitchen (801) 324-2117
Tom Myrberg (801) 324-2978
Mary Kay Olson(801) 324-5873
Martin Anderson (801) 324-2017
Brad Markus (801) 324-5663
Marketing TeamMarketing Team
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