FERC Praises "Pony Express"
The Federal Energy Regulatory Commission has approved a request by KN Energy Inc. to convert its 900-mile Pony Express Pipeline from oil to natural gas (Docket No. CP96-477-000). The pipeline was expected to begin operating in August, carrying natural gas from several points in the Rocky Mountains to Kansas City.
Through a separate regulatory authority, subsidiary KN Interstate will construct a 36-mile Riverside lateral to the Kansas City market. The FERC approved rolled-in rate treatment for the pipeline.
The project garnered praise from the FERC. Commissioner Massey called the project "innovative" and noted that it would result in rate reductions. Commissioner Hoecker applauded that the project would cost $60 million less than a new pipeline.
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