Water Pipeline Concept

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Water Pipeline Concept

• Brian Jeffries
• Executive Director
• February 20, 2007

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• Project costs recovered from users
• Mainline transmission line, one million barrel
  per day capacity
• Disposition by either injection or delivery a
  another water body
• Disposition of treating residue to extent
  treating required

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Data WOGCC historical, CBM task force forecast
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Why is WPA Exploring This?

• Asked to do so by CBM Task Force
• Consistent with WPA desire to foster
  infrastructure
• Concept of multi-user system not currently being
  advanced by others
• Attempting to settle the question of need versus
  alternative solutions

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Where From and Where to?
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How Have We Proceeded?

• Very preliminary design yielded forecast capital
  and operating costs
• Simple rate analysis using a ten year life,
  estimated costs of capital, fully subscribed
  project and estimated inflation yielded a
  ballpark ten year level rate of roughly 0.30 per
  barrel
• Tested rate and concept with a variety of
  potential producer subscribers

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Reactions From Producers

• Ball park rate did not disqualify the idea
• Raised eyebrows over estimated treating costs
• Concern over in-service date as it relates to
  project life and attendant rate implications
• Could attribute a regulatory certainty value to
  project

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What Next?

• Non-binding open season to collect quantity,
  water quality and input location data
• Collate responses to determine a project fitting
  the demand can yield a rate close to proposed
  rates
• If a project continues to appear feasible, fund
  more comprehensive engineering

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After that?

• Confirm/revise rates
• Reconcile ownership issue
• Conduct binding subscription period
• Confirm or cancel project

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Contacts

• Wyoming Pipeline Authority
• Brian Jeffries Executive Director
• b57.jeffries_at_comcast.net
• Colby Drechsel Associate Director
• cdrechsel_at_qwest.net