MarketLink and Questar Expansion Both Approved

Breaking News : Phased MarketLink Project, Questar Expansion Approved
posted 10:50 AM (CST) Dec 13, 2000

The Federal Energy Regulatory Commission has authorized Transcontinental Gas
Pipe Line (Transco) to phase in construction of its 700 MMcf/d MarketLink
project, which would expand its Leidy Line from western Pennsylvania to
markets in New Jersey and New York.

Phase I of MarketLink would add 166,000 Dth/d of new firm capacity on Transco
to serve five shippers beginning Nov. 1, 2001. Phase II would add 130,000
Dth/d to serve two shippers by Nov. 1 2002. FERC denied requests by the state
of New Jersey and the state's Department of Law and Public Safety to rescind
and vacate an April certificate approving construction of the entire
MarketLink project. However, the Commission is requiring Transco to file
executed contracts fully subscribing the remaining capacity within four
months of the order. If the contracts are not filed, Transco can not initiate
eminent domain proceedings with respect to the remaining facilities covered
by the original certificate.

The Commission also granted Questar a preliminary determination on
non-environmental grounds, saying its proposed Mainline 104 looping project
and interconnection with Kern River Pipeline is required by the public. The
$80.8 million Questar project would add 272,000 Dth/d of capacity. M.L. 104
would run from coal-seam reserves in the Uinta Basin near Price, UT, to the
Payson Citygate and the connection with Kern River. The project would loop a
portion of Questar's M.L. No. 40 and the entire M.L. No. 41. Both lines
currently are running full.