SLICK BROCHURE:

An eight page brochure soon followed the initial letter.

The front cover depicts the entrance to the Western Gas Storage Facility on Westheimer at Roesner.

"The Katy Gas Storage Facility

Answering Your Questions About Natural Gas Storage

Western Gas Resources Storage, Inc.

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Western Gas Resources Storage, Inc. has filed an application with the Texas Railroad Commission for an underground natural gas storage facility near Katy, Texas.  This pamphlet is intended to provide a concise description of the project and answer some of the more frequently asked questions about our plans for the facility.  If you have additional questions, please call Western toll-free at 800-933-5603, or write to us at the address on the back cover.

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Besides the narrative, there is a diagram showing the location (Green Bush Road with an indication that "it is 1.25 miles from Gaston Road and 1.25 miles through impervious shale above and below the sandstone which form an effective seal around the storage formation.") The copy with the diagram says "Injection/withdrawal wells must penetrate over a mile and a quarter of rock formations to reach the storage zone."

What Is Natural Gas Storage?

Natural gas is the safest and most environmentally desirable of all the fossil fuels.  Pipeline systems that crisscross the United States deliver natural gas to commercial, industrial and residential users.  Unlike coal or oil, natural gas is not stored on the ground or in tanks.  It can, however, be stored in deep underground formations that previously held gas or oil, and are now substantially depleted.

For millions of years, these natural geologic formations acted as sealed containers to safely and effectively hold gas or oil.  Geologic and production records tell us the size, location, capacity and producing characteristics of these formations.

Unlike a man-made cavern in a salt dome, the storage formation is actually rock--beach-like sand that has been compressed into sandstone that looks like solid rock.  Layers of impervious shale above and below the sandstone form an effective, permanent seal around the storage formation.  Over geologic time gas accumulated in the pore space of the sandstone.  Since the original natural gas has been removed form the formation, the same pore space can now be used for gas storage.  s can move in and out of the sandstone just as water moves in and out of the spaces between the grains of sand on a beach.

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At the Katy facility, the storage formation is technically the Hillebrenner sandstone of the Yegua Formation.  Originally containing natural gas, the formation is located approximately 6,900 feet below the surface and underlies about 2,500 acres.  The thickest portion, which is directly under Western's 82-acre tract, is about 65 feet thick.

Is Gas Storage New?

Natural gas storage is neither new nor unusual.  Depleted formationn have been used for gas storage since at least 1916.  As of January 1992, more than 300 storage formation were in active use in the United Sates.  In Texas, the first such storage project began in 1950.  Today, at least 20 similar facilities are operating in Texas.  The Bammel Field in northwest Houston has operated as a storage facility since 1952.  It underlies 7,000 acres running from the Champions neighborhood to east of I-45 and FM 1960.

Is Natural Gas Storage Safe?

Yes.  Because of its physical characteristics, natural gas is one of the safest fuels.  Since gas is lighter than air, if it is released, it rises and dissipates quickly to a non-flammable concentration. These inherent qualities of natural gas make it the preferred fuel for home and commercial  use--and contribute to its growing acceptance as a vehicle fuel.

Natural gas storage in depleted formations has proven to be extremely safe.  Today's technology and regulation provide an even greater margin of safety.  Gas pipeline systems that extend through-out the country have been shown to be the safest means of transporting energy.

The Katy facility utilizes state-of-the-art technology --including fiber-optic communications and computerized systems--to automatically monitor all important facility operations.  Pressures will be constantly monitored in the wells, pipelines and storage formations, as well as in formations above and below the storage zone and in three different aquifers.  Automatic and manual shut-downs insure additional levels of safety.

Why Store Natural Gas?

Why not just pipe the gas to where it is needed, when it is needed?  Pipelines alone cannot meet the fluctuations in demand for natural gas. Raw gas must be produced, processed and delivered through a pipeline system to end-users.  Without gas storage facilities, getting enough gas to all the people who need it when they need it is

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impossible.  Extreme weather conditions--that produce increased demand for gas--can interrupt production and processing operations.  To develop new markets for clean-burning natural gas, we must assure potential users that reliable supplies exist.

Due to weather conditions and other factors, demand for natural gas is highly variable.  As our cities grow, their need for natural gas continues to increase.  We can't move the producing fields closer to the people, but we can move the gas.  Gas storage facilities within or close to large population centers make it possible to supply natural gas when and where it is needed.

Demand for natural gas is lower in the summer.  Stopping or cutting back production can reduce the ultimate recovery from a well or field, making some wells or fields uneconomic to operate.  Many fields produce oil as their primary product, and the associated gas must be sold to keep the fields producing.  During periods of low demand, gas storage helps create a market to alleviate these problems.

How Does Gas Storage Work?

When gas supplies exceed demand, natural gas is produced, processed and transported via pipelines to the storage facility.  There, the gas is injected into the storage formation through wells specifically designed for injection and withdrawal.  When gas is needed, it is withdrawn through the same wells and returned to the pipelines for distribution to users.  Compressors at the facility inject gas into the formation and move it to and from pipelines in the area.

Why Here?

Several factors make this an ideal location for natural gas storage.  First is the proximity to the greater Houston area, a major consumer of natural gas. The closer the gas is to the consumer, the less the chance for interruptions in service. The only way to guarantee that the Houston area gets all the gas it needs is to have that gas readily available.  Gas from the Katy facility helps meet that need.

Secondly, this location is ideally situated for a natural gas storage facility because a large number of major gas pipelines already crisscross the area.  Texas is the largest producer and consumer of natural gas, using almost twice as much as any other state.  The Katy facility allows gas to be taken from and delivered to pipelines serving all parts of Texas, as well as the rest of the United States.

The third factor is the existing storage formation.  In addition to already being here, it is geologically an excellent container for natural gas.  Not only did the formation contain natural gas for millions of years, it has superb porosity and permeability characteristics.  With a useable storage volume of about 20 billion cubic feet, it is a practical size for a storage operation.

On this page is a diagram showing "numerous major pipelines which put Katy at the heart of gas transportation."  The diagram shows the EXXON Katy Plant, and pipelines for UTTCO, OASIS, LONE STAR, EXXON, TGP, TRUNKLINE, TRANSCO, AMOCO, UNITED, HPL, DOW-TENNGASCO, NGPL, and the Western Gas wellheads.

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Although hundreds of producing fields exist that are substantially depleted, this unique location best meets the above criteria.

What Happens on the Surface?

Western's centralized surface facility includes a compressor building, an office/warehouse building, a utility building and up to nine injection/withdrawal wells.  During injection periods, the compressors pump natural gas from pipelines into the wells.  They can also be used to transfer gas back into the pipelines.  The highly-automated facility will have operators on duty 24 yours a day 365 days a year.

What Happens Below the Surface?

After gas leaves the compressors, it enters the well-head on the surface.  As gas goes below ground, it flows down the well's tubing isolated from surrounding rock formations, including aquifers, by at least two layers of steel and one layer of cement.  Only after traveling down the tubing for more than a mile is the gas able to leave the well.  Cement and steel assure that the gas enters only the storage zone.  Once it enters the storage zone the gas occupies the same pore space that similar (but unprocessed) gas occupied for millions of years.  Injecting and withdrawing gas does not change the size of the storage formation, it simply increases or decreases the gas pressure within the zone.  The compressor facilities are specifically designed to assure that the original formation pressure is never exceeded.

Does This Community Benefit?

Yes.  A great many people benefit, including the local community.

Katy and Fort Bend County. The Katy facility, with a tax base of over $40 million, will infuse over $1 million a year into the local economy.  Fort Bend County and the Katy Independent School District will be major recipients of tax revenues.  Although the facility adds new employment to the community, additional schools, roads or other public services are not required.  Instead the new tax dollars can be used to improve services for the current population.

Greater Houston. The Greater Houston area also benefits from this facility because of the increase of a reliable supply of natural gas during peak periods of peak demand.

Texas. The Katy facility and other gas storage facilities benefit the State of Texas.  The oil and gas industry is vital to the Texas economy.  Texas has about one-fourth of all domestic gas reserves and derives income from selling gas outside the state.  By improving the reliability of gas supplies, storage makes gas a more attractive and viable fuel, thus expanding the market for natural gas.

On this page is a diagram showing how they will use "specially designed inject/withdrawal wells."  The diagram shows the well, the three layers of steel and two layers of cement that guarantee aquifer protection, and equipment at the bottom of the well that assures that injected gas can only enter the storage zone.

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Our Environment.  Increased reliability makes gas a more attractive alternative to coal or fuel oil.  Our environment benefits each time a user switches from coal or fuel oil to clean-burning natural gas.

What About Property Values?

There is no reason to expect any effect on the value of properties over the storage field.  Western has consulted with several area real estate agents, all of whom believe there will be no impact on those properties.  Studies of real estate sales in the Bammel area mentioned earlier showed no difference in sales prices of similar homes located inside or outside the Bammel storage field outline.  Additionally, by placing the surface facility near the center of our 82-acre tract even the closest adjacent property is several hundred feet away.

What About Water Protection?

Water is a valuable Texas resource.  That's why the Texas Railroad Commission makes water protection a high priority.  Before issuing approval for any storage operation, the Commission must be assured that the facility will not impact domestic or public aquifers.  There have been no reports of a Texas natural gas storage facility impacting water.

Western has gone beyond the TRC requirements to satisfy municipal utility districts and their experts that the facility will not impact local aquifers.  Those same protections benefit all water users in the area.

What About Pollution?

Other than electricity, the only fuel used at the facility will be natural gas.  The compressor engines will incorporate a "clean burn" design, meaning they operate even cleaner that normal natural gas engines, which already produce much lower emissions than gasoline or diesel engines.

In addition, the existence of the facility will encourage greater use of natural gas in place of fuels such as coal or fuel oil.

Who Regulates the Facility?

Natural gas storage is regulated by the the Oil and Gas Division of the Texas Railroad Commission.  The Katy facility is also subject to regulations by the EPA, OSHA, and the Texas Air Control Board, among others.  Regulations set standards for safety, water protection and air emissions.

What About Appearance?

Beyond meeting or exceeding the stringent regulatory demands, we are taking steps to address aesthetic concerns.  To be compatible with the local community, Western is taking extra measures including a single, centralized location, a comprehensive landscaping plan and extensive noise reduction.

Western's well, compressors and office will be limited to one centralized location covering approximately 17 acres within its 82-acre tract. Although other storage facilities commonly locate wells throughout the field area, Western has chosen to drill all wells at a central site.  The directional drilling that will be required is more expensive, but we have concluded that the benefits to the community outweigh the additional costs.

Although the facility will be kept clean and attractive, we have an extensive landscaping program, including a four to five foot berm topped with foliage and large trees, to effectively screen the facility from Green Busch and Roesner Roads.

What About Noise?

Noise abatement has been an integral part of the facility design from the beginning.  Besides a location hundreds of feet from the nearest property line, significant design features include: 

*acoustical panels lining the building to completely enclose the compressors;

*hospital-grade silencers for compressor exhausts;

*"quiet valves" and other noise-reducing design and construction for above-ground piping;

*specially designed cooling fans.

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This page contains an "overhead view [drawing, not a photo" of the centralized location of the facilities on Western's 82-acre tract."

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A Better Facility --The Trend For The Future.

As population centers such as the Houston area continue to expand, their energy and utility needs also increase.  The expansion and increase in demand means that facilities providing services such as electricity, water, sewer or natural gas can no longer be remotely located.  A facility located in a metropolitan area, however, must be compatible with its surroundings.  From initial design through construction and operation, the facility must incorporate features and procedures that set it apart form the remotely located facilities of the past.  The Katy facility is a part of this trend and meets these challenges.

Ask Your Questions.

Thank you for taking time to read this pamphlet.  Western hopes it has been helpful and informative.  We realize you may have additional questions or concerns.  We are happy to discuss any issue with you  We encourage you to call us toll-free at 800-933-5603, or write to the address on the back cover.

Back Cover

Western Gas Resources Storage, Inc.

12200 North Pecos Street, Suite 230

Denver, Colorado 80234

303-452-5603

800-933-5603