New Market Area Gas Storage Facility in
Northern California Entering Open Season

Central Valley is offering 5.5 Bcf of flexible, high-deliverability multi-cycle services at market-based rates.

Central Valley Gas Storage, LLC, a wholly owned subsidiary of Nicor, is developing a market area natural gas storage facility in the Sacramento River valley of north-central California. (Click on the map for the project location.) Central Valley plans to provide up to 8 Bcf of working gas capacity on a phased in basis, initially offering 5.5 Bcf of flexible, high-deliverability multi-cycle services. The facility will interconnect with the gas transmission system of Pacific Gas and Electric.

Central Valley is conducting an Open Season to obtain non-binding expressions of interest from prospective customers. Following the close of the Open Season, Central Valley intends to apply for a Certificate of Public Convenience and Necessity (CPCN) from the California Public Utilities Commission. The facility is scheduled to begin injections of gas in 2010 and to begin to offer firm service in 2011.

The Open Season will run from Wednesday, April 16, 2008 through Friday, May 30, 2008. Central Valley plans to begin negotiation of binding Precedent Agreements immediately upon the close of the open season.

Complete information regarding the facility and the Open Season can be accessed through the following links:

 Press Release
 Cover Letter
 Project Details 
 Non-Binding Proposal Form 
 Draft Precedent Agreement
 Project Location Map 

For additional information, Please contact John Fortman.