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What's New
Notice of Availability of the Environmental Assessment
for the Proposed East Cheyenne Gas Storage Project
Notice from the Federal Register
On December 22, 2009 East Cheyenne Gas Storage, LLC filed an applicant-prepared
draft Environmental Assessment (“EA”) with the Federal Energy Regulatory Commission
addressing the potential environmental impacts of the East Cheyenne Gas Storage
Project.
On December 18, 2009 East Cheyenne Gas Storage, LLC filed an application with the
Federal Energy Regulatory Commission for a Certificate of Public Convenience and
Necessity Authorizing Construction and Operation of an Interstate Natural Gas Storage
Facility, for Blanket Certificates and for Approval of Market-Based Rates under
Section 7 of the Natural Gas Act. The East Cheyenne Gas Storage Project, which has
undergone pre-filing environmental review in Docket No. PF09-12-000, was assigned
Docket No. CP10-34-000. A notice of the application filing was sent to the Sterling
Journal-Advocate, which published it on Monday, December 28, 2009. A copy of the
Public Volume (Parts 1 through 3) is available for review at the Sterling Public
Library.
On September 15, 2009 the Logan County Board of Commissioners voted unanimously
to issue to East Cheyenne Gas Storage, LLC a Conditional Use Permit (CUP) for the
East Cheyenne Gas Storage Facility. The CUP authorizes East Cheyenne to design,
construct, operate, and maintain a reservoir natural gas storage facility and associated
infrastructure to include pipelines on property currently zoned Agricultural and
Agricultural with CUP for a wind farm. The CUP is one of several permits that East
Cheyenne must obtain prior to constructing its facility. East Cheyenne currently
is working with the Federal Energy Regulatory Commission (FERC) in its pre-filing
review process, and intends to submit its application for approval of the project
to FERC in December 2009. If FERC approves the project, East Cheyenne plans to have
the facility in operation by September 2011.
On August 28, 2009, in accordance with the Federal Energy Regulatory Commission’s
(FERC's) regulations governing the pre-filing procedures and review process, East
Cheyenne submitted draft Resource Reports 1 through 13 to the FERC describing the
proposed East Cheyenne Gas Storage Project. The drafts of Resource Reports 1 and
10 submitted revise and replace the drafts submitted on June 12, 2009. The purpose
of the pre-filing process is to encourage the early involvement of interested stakeholders,
facilitate interagency cooperation, and identify and resolve issues and concerns
before an application is filed with the FERC. East Cheyenne intends to file a complete
application with the FERC prior to December 31, 2009.
Merchant Energy Announces
Open Season for East Cheyenne Gas Storage Capacity
Denver, CO July 9, 2009 – Merchant Energy Partners announced today that its
subsidiary, East Cheyenne Gas Storage, LLC will be holding a non-binding open season
for up to 10 Bcf of initial firm storage capacity that will be made available through
its proposed high deliverability interstate natural gas storage facility 23 miles
north of Sterling, Colorado in Logan County. The open season will begin today, Thursday,
July 9 and conclude at 5:00 p.m. MDT on Thursday August 6.
“We are very excited about East Cheyenne and the prospect of constructing one of
the first independently owned and operated gas storage facilities in the Rockies,”
said David Hooker, managing director of Merchant Energy. “With a facility design
of more than 19 Bcf of working gas capacity and 700 MMcfd of swing deliverability,
East Cheyenne will provide highly flexible, firm and interruptible gas storage services
to customers on the Rockies Express and Trailblazer pipelines that currently have
no on-system storage options.”
The East Cheyenne Gas Storage Project will provide natural gas storage services
to meet existing and anticipated demands for peak day, load following, balancing
and seasonal storage services to natural gas customers throughout the Midwest and
Western U.S. With design deliverability of up to 350 MMcfd on each pipeline interconnect,
the first phase of the project will serve new and existing markets off the Rockies
Express and Trailblazer interstate pipelines. Consideration will be given to a Kinder
Morgan Interstate Pipeline interconnect as part of future expansion plans.
With more than 19,000 horsepower of compression in the first phase, East Cheyenne
will accommodate up to three annual inventory cycles. Merchant Energy plans to begin
project construction in 2010 and anticipates an in-service date by the summer of
2011.
For questions about the open season or to obtain a bid package, contact David Hooker
at (303) 945-2649 or dhooker@mepco.us.com.
Open season bid packages can also be downloaded at www.EastCheyenne.com.
About Merchant Energy Partners, LLC
On June 12, 2009, East Cheyenne filed preliminary information related to the purpose
and need for the project, as well as alternatives investigated with the FERC under
Docket No. PF09-12-000.
On May 13, 2009 the Federal Energy Regulatory Commission (FERC or Commission) approved
East Cheyenne’s request for use of the Commission’s pre-filing review process. FERC
approval of the project for pre-filing review will initiate a schedule for certain
events related to the review process prior to East Cheyenne filing its application
with the Commission in December 2009. The following table highlights key events
in the approval process.
East Cheyenne Gas Storage Project Schedule for Approval
Under Section 7 (c) of the Natural Gas Act
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East Cheyenne initiates the FERC Pre-filing Process
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May 2009
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FERC approves Pre-filing Process
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May 2009
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Open House Meeting
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May 2009
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Field Surveys
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April – July 2009
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Detailed Engineering and Project Planning
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July - September 2009
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FERC 7c Application Submittal
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December 2009
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FERC Issues Environmental Assessment (EA)
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February 2010
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FERC Issues Certificate Order
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May 2010
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East Cheyenne Receives Authorization to Construct
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June 2010
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East Cheyenne Gas Storage Facility In Service
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September 2011
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East Cheyenne Gas Storage Project Commences FERC Approval Process
Denver, CO May 5, 2009 – East Cheyenne Gas Storage, LLC (www.EastCheyenne.com)
announced today that it has commenced the process through which it will obtain regulatory
approval from the Federal Energy Regulatory Commission (FERC) to develop, construct,
own and operate a new interstate natural gas storage facility on mineral leases
held by Denver, Colorado-based Merchant Energy Partners, LLC (Merchant Energy).
The East Cheyenne gas storage project will be located in two depleted reservoirs
approximately 23 miles north of Sterling, Colorado. With design maximum deliverability
of more than 700 MMcfd, the first phase of the project will serve markets off the
Rockies Express and Trailblazer interstate pipelines.
“This project will provide multi-cycle, high deliverability natural gas storage
services to markets across the Midwest and Western U.S.,” said William Harnisch,
Merchant Energy’s senior vice president of engineering and business development.
“We are very excited about the project and the benefits it will provide to diverse
natural gas markets, and we’re looking forward to getting construction underway.”
As proposed, the East Cheyenne project at full build-out will have working gas capacity
of approximately 18 Bcf. The planned twin 24-inch pipeline header system and more
than 19,000 horsepower of compression will accommodate up to three annual inventory
cycles per year. Upon receipt of necessary FERC authorizations, Merchant Energy
plans to begin project construction in 2010 and anticipates an in-service date by
the summer of 2011.
About Merchant Energy Partners, LLC
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