KN and Devon to construct Powder River Basin gas gathering system
Sept. 9, 1998 KN Energy and Devon Energy Corporation have signed a letter of intent for the formation of Thunder
Creek Gas Services, LLC. Thunder Creek intends to construct a 126 mile gas gathering system and associated facilities
in the Powder River Basin of north-east Wyoming.
The 24 inch gas gathering system would extend between Gillette and Glenrock, Wyoming. Fully developed, the system
would have an estimated capacity of 450 mm cfpd of gas. It would have access to multiple interstate carriers. The
total capital investment required to complete the proposed gathering system and associated facilities is estimated at
$ 110 mm. Completion is expected during the first half of 1999.
With its coalbed methane and conventional gas potential, the Powder River Basin could become one of the more active
onshore US natural gas exploration areas.
Completion of this gathering system would significantly increase gas gathering capacity in the basin. This should
accelerate development of coal seam gas in the Powder River Basin.
Devon Energy Corporation currently owns approximately 160,000 net acres in the Powder River Basin. In addition to its Powder River position, Devon Energy Corporation is noted for its substantial San Juan Basin coal seam gas development.
