Feds recommend 2 natural gas lines

By Matthew Brown

Associated Press

Published: Tuesday, Jan. 12 2010 12:00 a.m. MST

BILLINGS, Mont. — Federal regulators are recommending approval of two natural gas pipelines, including one that would go through Utah, that could sharply increase fuel shipments from the Rockies to population centers in the Midwest and on the West Coast.

The Rockies hold an estimated 375 trillion cubic feet of natural gas, or almost as much as the Gulf of Mexico.

The fuel has been promoted as a less-polluting alternative to coal because it emits less greenhouse gas. Yet moves to crank open the spigot in the Rockies are getting pushback from environmentalists worried about the growing number of pipelines crisscrossing the West.

Combined, the two latest proposals would move almost 2 billion cubic feet of natural gas a day — enough to fuel about 9 million homes. That would amount to a roughly 25 percent increase over current gas exports from Colorado, Wyoming and Utah.

The Federal Energy Regulatory Commission is expected to make final decisions on the Bison and Ruby pipelines in the next two to three months, said agency spokeswoman Tamara Young-Allen. Construction could begin by spring.

Building the pipelines — each hundreds of miles long — would entail crossing more than 1,200 streams and other bodies of water and disturbing thousands of acres of undeveloped land, according to recent environmental studies by commission staff.

TransCanada's $610 million, 310-mile Bison pipeline would run from Gillette, Wyo., through southeastern Montana to Morton County, N.D. From there, the line would feed into other pipelines serving the Midwest.

El Paso Corp.'s $3 billion Ruby pipeline would run from Opal, Wyo., to Malin, Ore., through Utah and Nevada along a 675-mile route.

Environmentalists have singled out the Ruby pipeline as particularly damaging because of its route through the remote wilds of northern Nevada. Also, horse advocates claim the project is prompting the removal of wild mustang herds along the proposed route by the Bureau of Land Management.

But commission staff concluded the environmental effects would be outweighed by the economic benefits of the pipelines, including roughly $30 million in annual property taxes. They also said the routes were chosen to minimize harm.

In Wyoming, where a history of limited pipeline capacity has dampened exploration and forced companies to sell fuel at a discount, officials have pushed hard for the projects. In December, they approved a state investment in Ruby of up to $300 million.

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