Falcon Acquires Hill-Lake Natural Gas Storage Facility

High-Deliverability, Multi-Cycle Retrofit Planned in Time for 2001-2002 Winter

Heating Season



Apr 03, 2001, 01:00 ET from Falcon Gas Storage Company

    HOUSTON, April 3 /PRNewswire/ -- Falcon Gas Storage Company has acquired
 the Hill-Lake natural gas storage facility 100 miles west of Dallas/Ft. Worth
 in Eastland County from TXU Lone Star Pipeline Company.  Operating as a
 single-cycle natural gas storage facility since the early 1960s, Hill-Lake has
 been used primarily to serve the Abilene market during the winter heating
 season.
     Falcon plans to add more compression, retrofit surface facilities and
 drill horizontal injection/withdrawal wells in order to convert the Hill-Lake
 facility into a high-deliverability, multi-cycle (HDMC) natural gas storage
 facility capable of 4-6 annual inventory cycles with peak withdrawal capacity
 in excess of 300,000 Mmbtu/d.
     In addition, Falcon will construct a 16-mile, 20-inch high-pressure
 pipeline to interconnect the Hill-Lake facility with TXU Lone Star Pipeline
 Company's "X" line, as well as the North Texas Pipeline jointly owned by TXU
 Fuels Company and El Paso Natural Gas Company.  These two major 36-inch gas
 transmission pipelines traverse the emerging energy corridor that runs from
 the Waha Hub in west Texas to the Carthage Hub in east Texas.
     "We are very fortunate to have had the unique opportunity to purchase an
 operating single-cycle gas storage facility that not only can be retrofitted
 for HDMC service at an acceptable cost, but also is in such a strategic
 location," said John M. Hopper, Falcon Gas Storage Company president.  "With
 the new interconnections, Falcon will be able to provide HDMC storage services
 to gas utilities and marketers that serve the residential, commercial and
 industrial loads in the Dallas/Ft. Worth Metroplex and surrounding areas.  In
 addition, Hill-Lake will now be able to meet the needs of the numerous
 gas-fired electric generating facilities that are being built along the
 Waha-Carthage energy corridor."
     Hill-Lake is Falcon's second acquisition in less than six months.  In
 October, the company acquired the Worsham-Steed gas storage facility in Jack
 County, Texas, which is about 50 miles from Dallas/Ft. Worth.  Both facilities
 are strategically located near major gas pipelines and electric transmission
 lines that serve the Metroplex.
 
     About Falcon Gas Storage Company
     Houston-based Falcon Gas Storage is a privately-held company that has more
 than 20 Bcf of working gas storage capacity in Texas, with three additional
 HDMC gas storage projects in various stages of development in Texas, New York
 and the Rocky Mountains.  President John M. Hopper is the former president and
 CEO of Inventory Management and Distribution Company (IMD), which was engaged
 in the management and economic optimization of natural gas storage assets for
 gas and electric utilities.  IMD's asset management business was sold to Koch
 Energy Trading Company last year.
 
      For more information, contact:
 
      Edmund Knolle                    Carole Minor
      Falcon Gas Storage Company       Encore Communications
      (713) 961-3204                   (713) 880-9550
      eknolle@falcongasstorage.com     cminor@encorecommunications.com
 
 

SOURCE Falcon Gas Storage Company
    HOUSTON, April 3 /PRNewswire/ -- Falcon Gas Storage Company has acquired
 the Hill-Lake natural gas storage facility 100 miles west of Dallas/Ft. Worth
 in Eastland County from TXU Lone Star Pipeline Company.  Operating as a
 single-cycle natural gas storage facility since the early 1960s, Hill-Lake has
 been used primarily to serve the Abilene market during the winter heating
 season.
     Falcon plans to add more compression, retrofit surface facilities and
 drill horizontal injection/withdrawal wells in order to convert the Hill-Lake
 facility into a high-deliverability, multi-cycle (HDMC) natural gas storage
 facility capable of 4-6 annual inventory cycles with peak withdrawal capacity
 in excess of 300,000 Mmbtu/d.
     In addition, Falcon will construct a 16-mile, 20-inch high-pressure
 pipeline to interconnect the Hill-Lake facility with TXU Lone Star Pipeline
 Company's "X" line, as well as the North Texas Pipeline jointly owned by TXU
 Fuels Company and El Paso Natural Gas Company.  These two major 36-inch gas
 transmission pipelines traverse the emerging energy corridor that runs from
 the Waha Hub in west Texas to the Carthage Hub in east Texas.
     "We are very fortunate to have had the unique opportunity to purchase an
 operating single-cycle gas storage facility that not only can be retrofitted
 for HDMC service at an acceptable cost, but also is in such a strategic
 location," said John M. Hopper, Falcon Gas Storage Company president.  "With
 the new interconnections, Falcon will be able to provide HDMC storage services
 to gas utilities and marketers that serve the residential, commercial and
 industrial loads in the Dallas/Ft. Worth Metroplex and surrounding areas.  In
 addition, Hill-Lake will now be able to meet the needs of the numerous
 gas-fired electric generating facilities that are being built along the
 Waha-Carthage energy corridor."
     Hill-Lake is Falcon's second acquisition in less than six months.  In
 October, the company acquired the Worsham-Steed gas storage facility in Jack
 County, Texas, which is about 50 miles from Dallas/Ft. Worth.  Both facilities
 are strategically located near major gas pipelines and electric transmission
 lines that serve the Metroplex.
 
     About Falcon Gas Storage Company
     Houston-based Falcon Gas Storage is a privately-held company that has more
 than 20 Bcf of working gas storage capacity in Texas, with three additional
 HDMC gas storage projects in various stages of development in Texas, New York
 and the Rocky Mountains.  President John M. Hopper is the former president and
 CEO of Inventory Management and Distribution Company (IMD), which was engaged
 in the management and economic optimization of natural gas storage assets for
 gas and electric utilities.  IMD's asset management business was sold to Koch
 Energy Trading Company last year.
 
      For more information, contact:
 
      Edmund Knolle                    Carole Minor
      Falcon Gas Storage Company       Encore Communications
      (713) 961-3204                   (713) 880-9550
      eknolle@falcongasstorage.com     cminor@encorecommunications.com
 
 SOURCE  Falcon Gas Storage Company