The proposal is part of efforts to grow the permanent funds the council oversees by increasing natural gas production in the NW corner of the state. Excluding investments in government bonds and securities, it would be the largest investment ever made by the state. But several hours after the council’s decision, Gov. Bill Richardson, through a spokesman, urged the council carefully to consider the impact of spending such a large sum.
The council approved a $130-$150 million bond investment for Earth Energy & Environment LLC, or E3, who plans to build a pipeline from the Farmington area that would connect with major interstate pipes, one owned by El Paso Corp., and the other by Transwestern, a subsidiary of Enron. The firm plans to build the line by 2006, and is weighing-up two proposed routes.
Other SW gas-producing regions, such as the Permian Basin, which straddles the New Mexico-Texas border, are facing declining reserves. But the San Juan is not, and has languished only because of a limited ability to ship the natural gas to major markets cheaply and efficiently.
Founded in 1978, E3 has been involved in energy-related projects in 20 states, including pipeline projects in Kansas and Missouri. State and company officials, citing confidentiality agreements, would not confirm whether the plan was part of a proposed purchase by New Mexico of the Transwestern pipeline, which is on the auction block in the Enron bankruptcy-court protection case. In a recent motion filed in the bankruptcy case, the state said it was considering bidding on the 3840-km long pipeline.
This story is courtesy of Alexander’s Gas & Oil Connections www.gas-oil-power.com