During the first 12 months following the project being placed in service in the first quarter 2009, Chesapeake’s firm capacity commitment will increase from an initial 75 million cubic feet (MMcf) per day to 200MMcf per day.
Chesapeake’s committed capacity on this project will reduce to 100MMcf per day in the second year and thereafter. This agreement increases the long-term firm commitments on the Fayetteville Lateral to 1.3 billion cubic feet (Bcf) per day by 2010 from the previously announced 1.2Bcf per day and will require the construction of additional compression facilities, subject to approval from the US Federal Energy Regulatory Commission.
Boardwalk expects the first 60 miles of the Fayetteville Lateral to be in service during the third quarter 2008 and the remainder to be in service with an initial capacity of 800MMcf per day during the first quarter 2009, expanded to 1.3Bcf per day in 2010.
