El Paso Expands Uinta Basin Gas Transportation Capacity

Wyoming Interstate Company, a subsidiary of El Paso Corporation says the Uinta Basin Expansion Project, which will provide additional natural gas transportation capacity for increasing production in eastern Utah's Uinta Basin. Kerr-McGee, a major producer in the Rockies with growing Uinta Basin volumes, has signed an agreement outlining the commercial terms under which it will contract for firm transportation to anchor the expansion project.

"Our Colorado Interstate Gas (CIG) subsidiary has been one of the early transporters out of the Uinta Basin, and this project reinforces our strategic development in this high-growth region," said James J. Cleary, president of El Paso's Western Pipelines. "Not only will this critical expansion provide Uinta producers, marketers, and other shippers a critical, direct link to important Rockies trading points, it will give customers across the country additional access to Uinta Basin gas supplies."

The project will add a 128-mile, 20- or 24-inch pipeline from processing facilities near CIG's Natural Buttes Plant in Uintah County, Utah, to Kanda, an interconnection point with the Overthrust Pipeline and WIC in Sweetwater County, Wyoming. The new pipeline, which will add capacity of between 250,000 to 350,000 dekatherms per day, will also provide interconnects with Northwest, Questar, Questar's Clay Basin Storage, and CIG. In addition, WIC will expand its mainline system from Kanda, east to Wamsutter, Wyoming, to accommodate additional volumes.

WIC is holding a binding open season for the Uinta Basin Expansion Project and will use the results to determine the final capacity needed for the project. The anticipated in-service date is January 2008. The binding open season began November 4, 2005 and will end on November 30, 2005.