Peregrine Midstream Partners’ Ryckman Creek Open Season Oversubscribed by 35 Bcf

November 2010 Vol. 237 No. 11

Ryckman Creek Resources, LLC, a gas storage project owned by Peregrine Midstream Partners LLC, has concluded its non-binding open season for firm natural gas storage service at its proposed high-deliverability, multi-cycle (HDMC) natural gas storage facility in Uinta County, Wyoming.

In response to Ryckman’s offer of 15 Bcf of capacity beginning April 2012, it received market-priced bids requesting more than 50 Bcf of capacity by 25 companies representing different sectors of the energy industry.

“The value of the bids that Ryckman received in the Open Season reflects the strong need for well connected high-deliverability, multi-cycle gas storage in the Western Rockies near the Opal Hub,” said Peregrine managing director Jeff Foutch. “We will now begin working with the top bidders to finalize service agreements.“

Ryckman began the pre-filing process with the FERC in April of this year and is on track to file the 7(c) Certificate application request later this month in order to receive final FERC authorizations by April 2011. Receipt of FERC authorization by this date will support Ryckman Creek’s targeted April 2012 in-service date. Ryckman plans to have additional storage capacity available, for a total of 35 Bcf, by spring 2013. Based on the Open Season responses, the Company is now considering a Phase II expansion of up to 50 Bcf.

The Ryckman Creek Resources project will offer its customers the ability to interconnect with five interstate pipelines, including Kern River, Questar, Overthrust Pipeline, Ruby Pipeline and Northwest Pipeline, which mirrors the Opal Hub.