Federal regulators this week gave a green light to a new natural gas pipeline that will enable Rocky Mountain producers to send more of the clean-burning fuel to Midwestern markets.

Whether Rocky Mountain states can get competitive prices for their natural gas depends on having adequate export capacity.

The Federal Energy Regulatory Commission on Tuesday announced it had approved Entrega Gas Pipeline Inc.'s proposal to build a 330-mile pipeline from northwest Colorado to the Cheyenne Hub in Weld County, Colo.

Total cost of the project is estimated at $664 million.

The pipeline is also designed to move natural gas from the Wamsutter area in south-central Wyoming. However, it's unclear when the Wamsutter-to-Cheyenne Hub connection will be complete. That has some companies and state officials worried that there will be a period of about a year when a significant portion of Wyoming natural gas is displaced by Colorado natural gas.

That means increased competition for pipeline space in Wyoming may drive down prices here and decrease revenues to the state. In response to this concern, the Wyoming Natural Gas Pipeline Authority has scheduled a special public meeting Aug. 30 at the Wyoming Oil and Gas Conservation Commission building in Casper.

"They've said segment one from Meeker to Wamsutter will be in service by Jan. 1, 2006. But they don't specify when segment two will be complete, which is from Wamsutter to the Cheyenne Hub. And that's our heartache," said Colby Drechsel, technical analyst for the Wyoming Natural Gas Pipeline Authority.

Wyoming's natural gas industry is particularly concerned because it is exporting more gas than ever. Just this month, the state broke historic levels by exporting more than 5 billion cubic feet of gas and "committing" 84 percent of the region's total export capacity.

Now, the industry faces a scenario of losing 750 million cubic feet per day, or approximately 10 percent, of its export capacity to Colorado natural gas for a period of about one year. No one is certain of what effect it might have on prices. But there are some drastic measures being considered.

Drechsel said the Wyoming Natural Gas Pipeline Authority could choose to construct a Wamsutter-to-Cheyenne Hub pipeline itself to avoid a displacement in 2006.

"That's a very serious consideration. We'll step up to the plate if we have to," Drechsel said.

In the meantime, stakeholders across the board agree the Entrega pipeline, just as any additional pipeline leading out of the Rockies, will be a benefit to the entire region in the long run.

"This is going to be good for the state of Wyoming in the long run," Entrega project manager Larry Drader said. "Whether or not there will be some short-term pain remains to be seen."

NewsTracker

* Last we knew: Entrega Gas Pipeline Co. proposed building a natural gas pipeline from northwest Colorado to the Cheyenne Hub in northeast Colorado which would also take gas from the Wamsutter region in south-central Wyoming.

* The latest: The Federal Energy Regulatory Commission this week approved construction of the pipeline.

* What's next: Construction from Meeker, Colo., to the Wamsutter region is expected to be completed by Jan. 1. The Wyoming Natural Gas Pipeline Authority will hold a special meeting on the matter at 10 a.m. Aug. 30 at the Wyoming Oil and Gas Conservation Commission building in Casper.

Energy reporter Dustin Bleizeffer can be reached at (307) 682-3388 or dzeffer@trib.com.