CALGARY, Oct. 30 /PRNewswire-FirstCall/ -- The Federal Energy Regulatory Commission (FERC) has approved a revision to the Alliance Pipeline L.P. (Alliance) tariff which allows Alliance to waive a gas quality specification on a first come, first served basis. This waiver will enable Pecan Pipeline (North Dakota), Inc. (Pecan North Dakota), a wholly owned subsidiary of EOG Resources, Inc. (EOG), to flow dense phase rich gas outside the liquefiable hydrocarbon specification currently contained in Alliance's FERC Gas Tariff. The Pecan North Dakota natural gas receipts will not have an operational impact on the Alliance system as this natural gas will be blended with much larger quantities entering from Canada, and the combined gas stream delivered to the Chicago market will remain within Alliance's FERC Tariff gas quality specifications.
"The FERC's decision shows a strong commitment to swiftly and effectively develop North Dakota's natural gas resources by utilizing existing infrastructure," said Murray Birch, president and chief executive officer, Alliance Pipeline. "We are very pleased, and appreciative of, the support we received for this application."
"Pecan North Dakota's planned Prairie Rose Pipeline is indicative of EOG's commitment to the development of the Bakken oil play in the region. We appreciate the support of the FERC, the State of North Dakota and other entities in helping to advance this important project," said Ray L. Ingle, president, Pecan North Dakota.
The location and design of the Alliance system is uniquely advantageous for North Dakota natural gas producers: the Alliance system runs through the middle of the Williston Basin and can also transport natural gas liquids thereby reducing the need for producers to build plants to process the gas before transporting to market. Additional unsubscribed capacity is available on the Alliance system in the United States.
The Pecan North Dakota Transportation Agreement has an initial term of 10-years with options for renewal. The new interconnection near Towner, North Dakota, is scheduled to be on-line in mid 2009.
For more information, visit http://www.alliance-pipeline.com/ About Alliance Pipeline:
Alliance Pipeline L.P. ("Alliance U.S.A.") owns the U.S. portion of the Alliance Pipeline system. Alliance U.S.A. is owned 50 percent each by affiliates of Enbridge Inc. (TSX:ENB) and Fort Chicago Energy Partners L.P. (TSX:FCE.UN).
Alliance Pipeline Limited Partnership ("Alliance Canada") owns the Canadian portion of the Alliance Pipeline system. Alliance Canada is owned 50 percent each by affiliates of Enbridge Income Fund (TSX:ENF.UN) and Fort Chicago Energy Partners L.P. (TSX:FCE.UN).
Forward Looking Information: Certain information contained in this news release constitutes forward-looking statements. The words "anticipate", "expects" and "expected to" and similar expressions are intended to identify such forward-looking statements. Although Alliance Pipeline believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties including, but not limited to, future operating performance, regulation, economic conditions and fundamentals affecting the oil and gas producing and marketing industries. Should one or more of these risks or uncertainties materialize or fail to materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected.
