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Wyoming Water Pipeline Authority Concept Exploration

This project explores the concept of a water pipeline system in Wyoming, aiming to meet water needs through a mainline transmission line. Discover the project's goals, process, and reactions from producers, as well as future steps and contacts for more information.

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Wyoming Water Pipeline Authority Concept Exploration

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  1. Water Pipeline Concept Brian Jeffries Executive Director February 20, 2007

  2. 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

  3. Data: WOGCC historical, CBM task force forecast

  4. 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

  5. Where From and Where to?

  6. 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

  7. 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

  8. 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

  9. After that? • Confirm/revise rates • Reconcile ownership issue • Conduct binding subscription period • Confirm or cancel project

  10. Contacts Wyoming Pipeline Authority Brian Jeffries – Executive Director b57.jeffries@comcast.net Colby Drechsel – Associate Director cdrechsel@qwest.net

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