Chevron Files for Underground Natural Gas Storage Facility in Colorado

Chevron Global Gas, a division of Chevron U.S.A. Inc., has filed an application with the Federal Energy Regulatory Commission (FERC) as part of the permitting process to build an underground natural gas storage facility to provide critical infrastructure necessary to meet the growing demand for natural gas in the United States.

The project, named Windy Hill, includes the construction and operation of an underground natural gas storage facility in northeastern Colorado near the town of Brush in Morgan County. Windy Hill will include four salt storage caverns with total working natural gas capacity of 6 billion cubic feet.

John Gass, president of Chevron Global Gas, said, "Today's announcement underscores our focus on business opportunities to build upon our already strong position as a natural gas supplier in the United States. Our priority is to finalize the federal and local permitting process necessary for us to begin activities as early as possible.

"As the first bedded-salt gas storage facility in Colorado, the Windy Hill project is strategically positioned to add critical high deliverability storage capacity for producers in the Rockies and to help maintain reliable supplies of natural gas for the growing Denver market," Gass added. "Natural gas represents one of the energy industry's greatest growth opportunities. Natural gas is expected to outpace demand for crude oil over the next two decades and is fast becoming the fuel of choice for homes and industry."

Chevron filed the Windy Hill application with the FERC on Nov. 2, 2005. Construction of the first two storage caverns is anticipated to start as early as 2006, or as soon as the project receives authorization from the FERC. The company anticipates providing service from the first two storage caverns beginning in 2008, and the third and fourth storage caverns in 2010.