Ute Energy is important to Utah's economic development. We commend the Ute Indian Tribe for seizing the opportunity to tap into the area's wealth of resources, helping us become less reliant on foreign energy supplies,"
Midstream Projects
Uintah Basin Field Services
Uintah Basin Field Services, LLC (“UBFS”) is a midstream company formed to construct and operate a 12-inch 64 mile high pressure natural gas gathering and transportation system to service lands near the Hill Creek Extension Lands. The UBFS system has the capacity to transport 150,000 MMBtu/d. UBFS is owned by Ute Energy (24%), Questar Gas Management (38%)and FIML Natural Resources (38%). Questar Gas Management operates the company.
The UBFS pipeline system was completed and placed in service in late 2006 (the original pipeline is called the north-south “trunkline”). UBFS has expanded the system twice since the trunkline was placed in service; and both expansions were placed in service in early 2007. First, UBFS acquired an 11-mile, 6-inch lateral (Winter Ridge Lateral) that transports volumes from the east side of Hill Creek and connects into the trunkline. This system also included 14 miles of low pressure gathering lines and two compressor stations. Second, UBFS constructed a 24 mile, 12-inch extension from the southern-most point of the trunkline east to service Pioneer’s development of the lands east of the Hill Creek Extension.
Three Rivers Gathering
Three Rivers Gathering LLC (“TRG”) is a 16-inch high pressure natural gas gathering and transportation system with a total capacity of 300,000 MMBtu/d. Three Rivers will traverse the reservation from the western portion of the Reservation over to its easternmost edge. Three Rivers is a 50/50 joint venture between Questar Gas Management and Ute Energy with Questar serving as operator.
The project has been designed in several phases. Phase I is the easternmost section of the pipeline which runs from Mesa Tap east into Fidlar. Phase I went into service in July 2007. The eastern section has the ability to receive volumes from the UBFS and Comet pipelines and transport the gas to Fidlar.
Phase II runs west from Mesa Tap out to Barrett’s Tavaputs development in the 12S-15E region. Phase II became operational in the 4Q2008.
Subsequent expansions of the TRG system are being evaluated. This expansion would connect at Mesa Tap and gather volumes from the northwest section of the Reservation.
Chipeta Gas Plant
Anadarko and Ute Energy have ownership of the first cryogenic natural gas processing plant in the Uintah Basin. Anadarko is the operator and Ute Energy owns a 25% interest in the plant.
at least three Processing Trains planned for the Chipeta facility. The first Train began operating in late 2007. It is a refrigeration plant with capacity of 250 MMcfd. The second and third Trains would add 500 MMcfd of cryogenic capacity to the plant. Train 2 is under construction and will start processing gas in early 2009.
The Chipeta plant to build a large gas processing hub in the Uinta basin with connections to multiple downstream interstate pipelines, much like Opal in the Green River Basin of Wyoming. The Chipeta facility will have interconnects with four different interstate pipelines including WIC, CIG, STR, and NWP.