Kern River Announces Open Season
Kern River Gas Transmission Company announced today it is holding an open season through Jan. 11, 2008, to determine shipper interest for firm year-round transportation service to Utah, Nevada or California. New expansion service resulting from this open season would be available Nov. 1, 2010.
Kern River will determine the capacity, scope and cost of a proposed expansion based on the results of this open season. The estimated size of the expansion is between 200,000 and 500,000 dekatherms per day. Construction of a system expansion is subject to approval from the Federal Energy Regulatory Commission.
“We believe the timing is right to once again expand the Kern River system,” said Micheal Dunn, president. “Based on the increasing level of Rockies gas production, and the increasing demand in the market area along our pipeline system, this proposed expansion will be in service at the right time to serve customer needs.”
Shippers interested in firm year-round transportation service must execute a binding precedent agreement during this open season reflecting their commitment to accept either a 10- or 15-year firm transportation service agreement. Based on the commitments and regulatory approval, Kern River will proceed to construct pipeline, compression and associated facilities to increase the capacity of its system at incrementally priced transportation rates.
Existing firm shippers interested in permanently relinquishing capacity on a year-round basis must execute a separate precedent agreement. Relinquished capacity may be utilized in lieu of constructing facilities or in the final design of the new expansion project.
To express interest in firm service or to relinquish capacity, parties should contact Kern River business development representatives Laurie Brown at 801-937-6410, Kevin Billings at 801-937-6167 or Greg Snow at 801-937-6270 to obtain a copy of the applicable precedent agreement. The relinquished capacity agreement must be completed, executed and returned by 4 p.m. MST Dec. 17, 2007. The new capacity agreement must be completed, executed and returned by 4 p.m. MST Jan. 11, 2008.
Kern River Gas Transmission Company owns and operates a 1,680-mile interstate natural gas pipeline between southwestern Wyoming and Southern California. With headquarters in Salt Lake City, Kern River currently delivers more than 1.7 billion cubic feet per day of natural gas to expanding markets in Utah, Nevada and California. Kern River is a subsidiary of MidAmerican Energy Holdings Company. Company information is available at www.kernrivergas.com.
MidAmerican Energy Holdings Company, based in Des Moines, Iowa, is a global provider of energy services. Through its energy-related business platforms — PacifiCorp, MidAmerican Energy Company, CE Electric UK, Kern River Gas Transmission Company, Northern Natural Gas Company and CalEnergy — MidAmerican provides electric and natural gas service to more than 6.9 million customers worldwide. Information on MidAmerican is available on the Internet at www.midamerican.com.