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Brad_Bergum
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    09/28/09 at 09:19 AM
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Natural Gas pipeline almost complete


Kykuit Resources LLC and associated companies lay pipe just west of Hilger (above). Construction is nearly finished on a natural gas pipeline from the Whiskey Ridge area of the Missouri Breaks to an area southwest of Lewistown, where it will meet existing pipeline. Photo by Rebeka Benzing

by JIM DULLENTY
News-Argus Staff Writer
Published:
Monday, September 28, 2009 9:59 AM MDT
A natural gas pipeline, being built from gas wells in the Winifred area to an existing pipeline southwest of Lewistown, is nearly complete. NorthWestern Energy will take the gas at the point southwest of Lewistown and distribute it wherever its pipelines go in Montana.

That’s according to Darryl Knight, operations manager for Kykuit Resources LLC, which is building the Winifred-Lewistown pipeline. Kykuit Resources LLC is based in Mentor, Ohio, with offices in the Bank Electric Building in Lewistown.

A Lewistown energy official said that NorthWestern’s line goes from here to Billings. A main source of that firm’s natural gas comes from a field near Rygate, he said.

Knight said Kykuit’s pipeline extends from the Whiskey Ridge area of the Missouri Breaks northeast of Winifred to Winifred and then south to Christina, where it is linked to three more new wells, and from there goes south, just west of Hilger, to Hanover Road.

The pipeline crosses Hanover Road and goes west of Lewistown about a mile or two and crosses Highway 87 at Cottonwood Creek Road. Then it parallels Cottonwood Creek Road for two miles to a point on Moe Road where it connects to Northwestern’s natural gas line.

Knight said he expects his line to go in before reconstruction of Highway 87 is finished in the Cottonwood Creek area.

“We just have two miles to go and we will be done,” said Knight. He added that his crews currently are laying the line along Cottonwood Creek Road.

Two-inch gathering lines have been put in to all of the natural gas wells in northern Fergus County. The gas then enters a four-inch line for the trip to Lewistown. It will pass through a new compressor station located 75 feet from the Winifred Highway at Christina.

There will be a second compressor station at Lewistown. These are needed, Knight said, to build up pressure in the line so the gas will flow. On the 25-mile route from Christina to Lewistown, the gas passes through a six-inch line.

“We are in the process of forming Tatonka Natural Gas LLC, which will be our distribution company,” said Knight. He said this company will install a distribution system in Winifred where many residents have expressed a wish to have natural gas service.

“Right now the price of natural gas is so low it will save consumers money to switch to natural gas,” he said.

Frank Carr, Winifred businessman and contractor, recently said Winifred homes are now heated by propane, wood and electricity.

Kykuit and its associated companies have invested so much money in Fergus County and have been so successful in finding new gas wells that the wells and pipeline have boosted Fergus from a third-class to a second-class county, according to Fergus County commissioners. Commissioners said once a county goes over $30 million valuation, it becomes a second-class county.

“We hope to have the distribution system in Winifred installed within the next several months. Hopefully it will be done by the first quarter of 2010,” Knight said. He added that lines also can be built to serve customers in Suffolk, Christina, Hilger and on south to Lewistown.

“We will try to supply everyone along the route,” said Knight.

Although Kykuit believes it has a good, steady supply of natural gas, the firm is convinced there is more where this came from, Knight said.

“We’re positive there are more natural gas deposits in this area. I don’t want to say they are huge but there’s more to be found there,” said Knight.

He said he was speaking of the Winifred area. He added he does not know the potential of areas closer to Lewistown. None of the wells Kykuit, and its partner, Sleepy Hollow Oil and Gas LLC, also of Mentor, Ohio, have drilled has produced oil, although some have produced water, he said.

“We have been able to build the pipeline so fast because the weather has been good and we’ve had tremendous cooperation of landowners. The Lewistown Municipal Airport Board also has been helpful. We will be crossing a little of their property,” said Knight.

He explained that the two compressor stations will be small, self-contained structures 20 feet by 20 feet in size. The biggest structure Kykuit is constructing is a 12,000-square-foot operations headquarters just south of Winifred on Rose Creek Road. That building is visible from the Winifred Highway.

Great Plains Exploration LLC, another Mentor-based company, is a partner in the construction of that building, Knight said. He added that for now, Kykuit will maintain its offices in Lewistown but eventually may move its headquarters to the Winifred building.

“We’re hiring local personnel whenever we can,” said Knight. “We expect to have about seven employees for our operations here. This includes office, field and maintenance personnel.”



http://lewistownnews.com/articles/2009/09/28/news/doc4ac0d027688bb838169917.txt


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Brad Bergum
Winifred High School 1990
Montana State University 1995
Brad_Bergum
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    09/28/09 at 01:21 PM
  Reply with quote#2

The paragraphs at the end really pack some exciting potential news ... this sounds like there is a pretty good chance Winifred will be seeing some permanent jobs from this operation ... and perhaps with that some more kids in the school?  The more, the better!


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Brad Bergum
Winifred High School 1990
Montana State University 1995
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