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.


PRESS RELEASE

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
East Cheyenne initiates the FERC Pre-filing Process May 2009
FERC approves Pre-filing Process May 2009
Open House Meeting May 2009
Field Surveys April – July 2009
Detailed Engineering and Project Planning July - September 2009
FERC 7c Application Submittal December 2009
FERC Issues Environmental Assessment (EA) February 2010
FERC Issues Certificate Order May 2010
East Cheyenne Receives Authorization to Construct June 2010
East Cheyenne Gas Storage Facility In Service September 2011


PRESS RELEASE

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


 
This page was last updated on 4/19/2010
East Cheyenne Gas Storage | 10901 West Toller Drive, Suite 200 | Littleton, Colorado 80127
Local: 720-351-4000 | Toll Free: 888-861-5701 | FAX: 720-351-4200