MMS signs 10-year gas transportation deal

By OGJ editors
HOUSTON, Mar. 15 -- The US Minerals Management Service has signed a 10-year agreement to transport more than 50 MMcfd of royalty in-kind natural gas through the 1,323-mile Rockies Express Pipeline under construction from Wyoming and Colorado to the US East (OGJ Online, Mar. 8, 2006).

The agreement needs Federal Energy Regulatory Commission approval.

MMS Director Johnnie Burton said the pipeline commitment will enable the service to expand its royalty-in-kind program in Wyoming and give it flexibility to move gas to areas of greatest demand.

She said recent analyses indicate that taking royalties in kind can generally increase returns to taxpayers by 1-2% over what would have been received if royalties were taken in value as cash.

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