November 25, 2003

The Michigan Public Service Commission (MPSC) today granted Wilderness-Chester Limited Partnership the authority to construct and operate the Half Moon pipeline in Otsego County.  Wilderness-Chester filed an application requesting authority to construct and operate the pipeline on Sept. 2, 2003.

The pipeline will consist of two segments – an inlet pipeline that will deliver gas to the Wilderness-Chester Facility for treatment and an outlet pipeline that will transport treated gas away from the facility.  The treatment facility removes the naturally occurring carbon dioxide from the Antrim shale formation.

The inlet pipeline will consist of up to 1,730 feet of 16-inch outer diameter pipeline interconnecting with the South Chester, Little Bear and Spartan pipelines owned by CMS Gas Transmission Company and extending northwesterly to the Wilderness-Chester Carbon Dioxide Facility site in Otsego County.

The outlet pipeline will consist of approximately 2,590 feet of 12-inch outer diameter pipeline originating at the outlet of the Wilderness-Chester Carbon Dioxide Facility and extending to an interconnection with the existing AEP 20-inch pipeline owned by Michigan Consolidated Gas Company or an affiliated company.

The Half Moon pipeline, to be located entirely on lands owned by the state of Michigan, will be used to allow curtailed Antrim gas to be produced, treated and transported to market.  The company says the pipeline is needed to avoid periodic occurrences of downtime.  It proposed a maximum transportation rate of 2.55 cents per thousand cubic feet, which the Commission concluded is reasonable.

Today’s order authorizes the company to construct and operate the Half Moon pipeline in Otsego County and approves the map, route and type of construction.   The pipeline is to be operated only during periods of time when existing gas treating facilities are operationally restricted or inoperable.

In granting the company authority to construct and operate the pipeline, the MPSC found that the pipeline will serve the public convenience and necessity.

The pipeline will meet the requirements of the Michigan Gas Safety Standards if constructed, tested and operated as proposed.   The company must file with the Commission, within 60 days after construction of the pipeline, a completion report that includes pressure test data and a map of the pipeline, as constructed. 

Wilderness-Chester is located in Gaylord.

The MPSC is an agency within the Department of Consumer and Industry Services.

Case No. U-13874

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