Jan 11, 2007 |
Bluewater Gas Storage Announces Receipt of FERC Authorization and Open Season |
Contacts: A. Patrick Diamond Director, Strategic Planning 713/646-4487 – 800/564-3036
Roy I. Lamoreaux Manager, Investor Relations 713-646-4222 – 800/564-3036
FOR IMMEDIATE RELEASE
Bluewater Gas Storage Announces Receipt of FERC Authorization and Open Season
(Houston – January 11, 2007) Bluewater Gas Storage, LLC ("BGS"), an indirect subsidiary of PAA/Vulcan Gas Storage LLC, in which Plains All American Pipeline, L.P. (NYSE: PAA) owns a 50% interest, announced today that effective December 1, 2006, it had received authority from the Federal Energy Regulatory Commission (FERC) to sell interstate natural gas storage services and that it was conducting an open season for firm storage service.
BGS owns two natural gas storage reservoirs (Columbus III and Kimball 27) located in St. Clair County, Michigan, which have an aggregate working capacity of approximately 26 billion cubic feet (BCF). The facilities are connected by a common header system that spans approximately 36 miles and has seven interconnects with an industrial customer, several utilities and three interstate pipelines that serve, directly or indirectly, various markets in the Upper Midwest and Northeastern portions of the United States and Eastern Canada.
As of December 1, 2006, the BGS facility is able to provide storage services regulated by the FERC under Section 7 of the Natural Gas Act and is authorized to charge market based rates. Previously, the facility was subject to regulation by the Michigan Public Service Commission. This change in regulatory status allows BGS to provide unlimited interstate storage service to its customers. BGS has also obtained a waiver of the FERC's "shipper must hold title" policy, which allows the company to bundle off-system capacity and offer seamless storage to other market centers such as Chicago, Illinois or Dawn, Ontario.
BGS currently has an Open Season for Firm Storage Service underway for capacity starting April 1, 2007. Interested parties should contact Richard Tomaski at (713) 652-3669 or rstomaski@bluewatergasstorage.com for more information. For more information on the BGS facility, please visit www.bluewatergasstorage.com.
Plains All American Pipeline, L.P. is a publicly traded master limited partnership ("MLP") engaged in the transportation, storage, terminalling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas related petroleum products (together "LPG"). Through its 50% ownership in PAA/Vulcan Gas Storage LLC, the partnership also develops and operates natural gas storage facilities. The Partnership is headquartered in Houston, Texas, and its common units are traded on the New York Stock Exchange under the symbol "PAA."
Forward Looking Statements Certain statements made herein are forward-looking statements. They include statements regarding the expected operational and storage capacity and benefits of the BGS facilities. These statements are based on management's current expectations and estimates; actual results may differ materially due to certain risks and uncertainties. These risks and uncertainties include, among other things, unanticipated shortages or cost increases in power supplies, materials and skilled labor, weather interference with business operations, disruption of domestic and foreign natural gas supplies, regulatory uncertainties and other factors and uncertainties inherent in the terminalling and storage of natural gas, including those factors and uncertainties inherent in the business as discussed in PAA's Annual Report on Form 10-K for the year ended December 31, 2005, Quarterly Report on Form 10-Q for the quarter ended September 30, 2006, and other filings with the Securities and Exchange Commission.
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