May 2010 Vol. 237 No. 5


Peregrine Midstream Partners Announces Rocky Mountains Gas Storage Project Near the Opal Hub

Ryckman Creek Resources, LLC has received approval to use FERC’s pre-filing review process for its Ryckman Creek Gas Storage Project, a new interstate natural gas storage development in Uinta County, Wyoming, near the highly liquid Opal Hub.

The project involves converting an existing partially-depleted oil and gas field, known as the Ryckman Creek Nugget Unit, into a gas storage field. First-phase working gas capacity is being designed for 25 Bcf of high-deliverability, multi-cycle (HDMC) gas storage. Phase I will include maximum injections exceeding 200,000 Mcfd and maximum withdrawals of approximately 360,000 Mcfd.

The project will be subject to regulation as an interstate natural gas storage facility under the Natural Gas Act. Ryckman Creek Resources intends to file an application for certificates of public convenience and necessity in fall 2010 to construct, own and operate the project, as well as to charge market-based rates for the services it will offer. Submissions that Ryckman Creek has made to the FERC may be found through the FERC’s website ( in the eLibrary tab at Docket No. PF10-18-000.

“Ryckman Creek is ideally located near the Opal Hub where it can serve a large number of producers, shippers and markets,” said Peregrine Project Development Vice President Chuck Sawyer. “The project’s natural gas storage services will meet existing and anticipated demand for firm, peak day, load following, balancing, and seasonal storage services to natural gas markets throughout the Midwest, Rocky Mountains and Western U.S. This will be the largest independently-owned gas storage project serving the Opal Hub area.”

Ryckman Creek plans to conduct a non-binding open season to gauge prospective customer interest during fall 2010. Construction on the project will start upon receipt of the certificate, anticipated in spring 2011, with an in-service date by April 2012. Parties submitting a proposal to the planned open season will be expressing an interest in contracting for storage services that will commence in April 2012 or later. Rates, including fuel retention percentages, will be negotiated market-based rates and will be determined after the open season’s conclusion.


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