We'd expected the expansion to actually be in the 200 - 250 MMcf/d range, 
although
as intimated in this press release, we might see a follow-on expansion notice 
for more volumes later.
My gut feeling is that they're waiting for more certainty regarding 
permitting/certification on a couple
of the Bakersfield area IPP projects first before proceeding with the second 
phase.  The good news is that an expansion on the order they're describing 
here should not materially affect the overall Western U.S. gas balance with 
over 6.0 Bcf/d being consumed in California alone.

Gas Daily 11-15-00
Kern River casts its lot with California expansion
Looking to accommodate demand for gas-fired generation in California, 
Williams has plans
under way to expand its Kern River Gas Transmission system. The company 
announced
yesterday that it would file an application with FERC to add an additional 
124,500 dth/d of
firm transportation capacity from Wyoming to California markets.
The proposal  called the California Expansion Project  would tap into 
increased production
in the Rocky Mountain basin. And the California Expansion could pave the way 
for a
second expansion of Kern River. According to a company release, Williams 
plans on holding
an open season later this year to gauge interest in additional capacity on 
the pipeline.
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. Kern River is 
well-positioned to
pursue an economically attractive expansion of its mainline.
The $80 million project proposal calls for adding three new compressor 
stations, as well
as boosting or retooling existing facilities in Wyoming and Utah. Williams 
also plans to upgrade
two meter stations. The project,s anticipated in-service date is May 1, 2002.
Back in August, Kern River held an open season to determine interest in firm 
year-round
gas transportation service in Nevada and California and to determine interest 
for capacity relinquishment
by existing shippers (GD 8/18). The pipeline landed a number of contracts 
providing
for delivery of Rockies supply into California.
According to Williams, demand for new capacity out of Wyoming is being driven 
by a
number of factors, including a shift in downstream markets for Canadian 
supply and strong
economic growth in Kern River,s market areas. Surging demand for gas-fired 
generation has
also played a role.
Morgan said a ramp-up in Rockies production coupled with demand for 
competitive transportation
promises a solid base for future expansion.  An expansion on Kern River in 
2003
could help bring that production to market, he said.
The 922-mile Kern River system delivers Rockies and Canadian supply to 
markets in California,
Nevada and Utah.  At present, the system has a design capacity of 700 million 
cfd.