FAQs
Why does CIG want to build this facility in Adams County?
Based on our studies of depleted oil and gas fields in the area, this is the best location to construct the storage facility. This is a project that will benefit Adams County, and it will be constructed using state-of-the-art safety systems and the best of engineering principles. At all times, Colorado Interstate Gas Company (CIG) seeks to operate its natural gas pipeline systems and storage facilities conscientiously and safely. We pride ourselves on the safety and reliability of our facilities that are located across the United States.
How big will the facility be?
As currently planned, the natural gas storage field will be located on approximately 8,360 acres with a certificated maximum capacity of 10.7 billion cubic feet of gas, of which 7.0 Bcf will be working gas and 3.7 Bcf will be base gas.
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How will you actually construct the facility?
The project involves several phases of construction activity. Initially, certain of the existing oil and gas wells in the field will be plugged and abandoned. Certain other existing wells will be re-entered and re-worked for use as storage observation wells. Next, eight wells will be drilled for the injection and withdrawal of natural gas. These wells will be drilled and operated according to company standards, best industry practices, and the regulations, requirements, and specific standards of the various permitting agencies. These wells will be used to inject natural gas into the underground storage reservoir and will also serve to withdraw the gas from the reservoir. Another well will be drilled as a salt water disposal well. This well will be used to dispose of water produced from the storage reservoir during withdrawal of the storage gas. This well will be drilled to a sufficient depth to dispose of the produced waters in a safe and efficient manner with careful consideration to preventing impacts to domestic water supplies in the area. All well activities will be completed using truck-mounted drilling and well workover equipment, and conventional rotary drilling equipment.
Additionally, a compressor station will be constructed on an approximately 10-acre site, centrally located within the storage field boundaries. This facility will be used to inject the gas into the storage wells, as well as to compress the gas into connecting pipelines during withdrawal operations. The compressor station will also have a gas processing facility to remove liquids and other impurities from the natural gas stream during withdrawal operations.
Finally, the storage wells will be connected to the compressor station by gathering pipelines. These lines will be used to move the natural gas from the storage wells to the compressor station during withdrawal operations and to the wells from the compressor station during the injection operations.
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When will the project begin and when will it end?
The initial construction is scheduled to begin in April or May of 2008 and is proposed to be placed in service in June 2009, subject to regulatory approvals.
How will this project help Adams County?
This project will provide for greater economic development in Adams County and the region because it will be a way that utilities can better plan for growth by having sufficient quantities of energy available when they need it. This is what's called a critical infrastructure project—it will enable local, county, and state officials to look to the future and have an additional means of providing natural gas as they plan for commerce, homes, and businesses that will benefit Adams County and the state as a whole.
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Can you describe the economic benefits of building the facility in Adams County?
During the building process, the project will provide local and regional economic benefits related to construction activities and construction personnel. In the longer term, upon build-out, the project will generate significant local taxes.
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Who will regulate the facility?
The Federal Energy Regulatory Commission (FERC) will have primary oversight, but the Colorado Oil and Gas Conservation Commission (COGCC) and other state regulatory and environmental agencies will also have oversight of the facility and its day-to-day operation to ensure that it's operated under the strictest safety and environmental standards. top
Will the facility be manned on a daily basis?
CIG is evaluating local manpower needs. But there will be personnel assigned to routinely inspect, maintain, and ensure proper functioning of the facility. In addition, its operation and safety will be monitored on a continuous basis. The facility will be remotely operated and electronically integrated into CIG's pipeline gas control network, giving us the ability to constantly monitor its proper functioning and operation. We can dispatch volumes of natural gas instantaneously to meet demand using electronic controls, and safety systems can also be activated in a similar fashion with redundancies built in where needed.
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Could you have built this elsewhere?
Based upon our extensive review of suitable geological formations in the region, this is the optimum location for such a facility, which will fulfill the requirement of being in close proximity to the Denver and Front Range markets. Additionally, since CIG is undertaking this project within an existing depleted natural gas production field, the impacts of this project are less than might be expected if no such past field activities had taken place.
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How much land will be required to build the facility?
As noted above, the entire storage field project will occupy approximately 8,360 acres. However, CIG will only need about 30 acres of surface land to accommodate the compressor station site and other above ground facilities. The balance of the acreage of the project is defined as “protection acreage.” This acreage boundary is established to ensure that no third-party drilling or surface activities interfere with the safe and efficient operation of the Totem Natural Gas Storage Project.
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How will this facility help satisfy demand for natural gas in the Rocky Mountain area?
This project is a shot-in-the-arm for the health of Colorado's energy future. Cities and metropolitan areas around the country have had natural gas storage facilities constructed nearby to meet consumer demand, including Santa Barbara, Denver, Houston, Salt Lake City, San Francisco, and Detroit, to name a few. In Colorado, demand continues to increase dramatically for natural gas and other forms of energy needed to accommodate continual growth in the greater Denver area and other major metropolitan areas of the state.
The project will enhance energy security for Colorado and the region by providing a readily available supply of natural gas. In other words, it will provide a physical hedge that can mitigate supply and price volatility during times of peak demand. Also, it will support our customers' peak day and hourly load growth management and will provide simplified and responsive services.
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How safe will this facility be?
We are concerned about the safety of all citizens and how our operations may affect them. We pride ourselves on having a good safety and operating record in spite of unforeseen incidents that can occur. We're working with federal and state agencies, including the COGCC, to ensure that our pipelines and storage facilities are operated safely.
It is important to note that CIG has had an outstanding safety record during its 79 years of pipeline and storage operations. Its record has historically been among the best in one of the nation's safest industries. El Paso Corporation, CIG’s parent corporation, currently has a nationwide pipeline inspection program under way that has been endorsed by federal authorities as being an excellent form of stewardship by the interstate pipeline industry. All of El Paso's 44,000 miles of pipeline will be inspected at least once or more often by 2012, and that program is about 78 percent complete. The Pipeline Integrity Program includes our pipelines in Colorado.
Please refer to our Safety page for more details on the safety measures to be implemented by CIG for this project.
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How will you obtain continual input from citizens about the project?
We welcome citizen feedback on all our operations here and across the U.S. To this end, CIG held an open house meeting in Bennett, Colorado to present the project to interested landowners and other public and private parties. The slide presentation from that meeting can be accessed from the project home page and is also provided here. We are actively discussing the project with local, county, state, and federal officials. As the process continues, we will be working with state and federal authorities on regulatory oversight by such agencies as the COGCC and the FERC, among others, on permitting issues and required approvals.
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