Transwestern Pipeline Company, LLC owns and operates a natural gas transmission system that connects natural gas supplies in the San Juan and Rocky Mountain Basins in northwest New Mexico, southwest Colorado, the Texas-Oklahoma Panhandle, and the Permian Basin region of West Texas and Southeastern New Mexico with California, Arizona, Nevada in the West and Texas, and New Mexico on its Eastern end.
FERC concluded that Transwestern did not expect for its loan to the parent company to be repaid.
Transwestern had written off the loan to parent company Enron as a loss of $540 million.
[4] The course of events for Transwestern with Enron's later bankruptcy were the following: The critical factor limiting the development of New Mexico's San Juan Basin has been insufficient capacity of the pipeline.
Unlike a private company such as Transwestern, or the stalking horse bidder [Southern Union] here, if New Mexico owned the pipeline, it would have a unique interest in increasing the capacity of the pipeline to increase the state's severance and production tax revenues by as much as $50 million or more annually, and by billions over decades to increase other revenue for the state and to create job.