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Date: Thu, 16 Nov 2000 05:01:00 -0800 (PST)
From: lorna.brennan@enron.com
To: john.goodpasture@enron.com, michael.ratner@enron.com, 
	sebastian.corbacho@enron.com, yuan.tian@enron.com, 
	courtney.barker@enron.com, danny.mccarty@enron.com, 
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	kevin.hyatt@enron.com, christine.stokes@enron.com, 
	tk.lohman@enron.com, michelle.lokay@enron.com, 
	lindy.donoho@enron.com, lee.huber@enron.com, susan.scott@enron.com
Subject: More Details on Kern River Expansion
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Williams to Expand Kern River by 124,500 Dth/d

Kern River Gas Transmission, a subsidiary of Williams, said it planned on 
filing an application yesterday with FERC to add 124,500 Dth/d of additional 
firm transportation capacity to its 922-mile pipeline system. The company 
said the California Expansion Project will not only provide additional 
natural gas capacity from Wyoming to markets in California, but also will 
provide an opportunity for Williams to offer significantly reduced rates for 
firm transportation based on the recent approval by FERC of Kern River's 
Extended Term Rate Program. 

"A combination of rapid growth and the development of new gas-fired power 
generation facilities in California is fueling expansion of the system," said 
Kirk Morgan, director of business development for Kern River and Northwest 
Pipeline. 

The project includes construction of three new compressor stations, an 
additional compressor at an existing facility in Wyoming, restaging a 
compressor in Utah, and upgrading two meter stations. Kern River said the $80 
million project is targeted to be complete by May 1, 2002. 

The company said demand for firm transportation on Kern River was driven by 
several factors: the diversion of Canadian gas supplies to markets in the 
Midwest from the Pacific region; increased production in the Rocky Mountain 
basin; strong economic growth in Kern River's market areas; and increased 
demand from gas-fired electric generation facilities. 

Williams said it anticipates holding an open season later this year to 
determine the level of market interest in a second expansion of the Kern 
River pipeline. "The demand for competitively priced transportation to 
markets in Nevada and California continues to grow. At the same time, gas 
producers in the Rocky Mountain basin are stepping up production. An 
expansion on Kern River in 2003 could help bring that production to market," 
said Morgan. 

