NorthWestern purchase of Devon facilities finalized

NorthWestern Energy Co. has finalized its purchase of gas production facilities in the Bear Paw Mountains from Devon Energy.

The 900 gas wells are in Blaine, Hill and Chouteau counties.

The purchase of the facilities will help stabilize natural gas prices for NorthWestern customers, said Bob Rowe, NorthWestern’s CEO.

With the $70.2 million acquisition, NorthWestern will be able to supply 37 percent of its customers needs, he said.

Owning its own natural gas facilities means price changes will be more moderate than buying gas on the market.

The sale includes Devon’s 82 percent interest in Havre Pipeline Co., which transports the gas from the wells.

Rowe said 29 Devon employees have accepted jobs with NorthWestern.

“We’re pleased to have secured another gas production asset in Montana that will help provide long-term supply price stability and reliability for our customers,” said Rowe.

State Sen. Greg Jergeson, D-Havre, who expressed reservations about the sale at a hearing arranged by the Montana Public Service Commission earlier this year, said he understood that all line employees who wanted to stay on were hired by NorthWestern.

Despite reservations expressed by about 100 people who attended the hearing, Jergeson said the commission had little choice but to approve the sale.

It’s hard to insist that Devon own property the company doesn’t want to own, he said. Devon could have just shut down the facilities, he said.

PSC Commissioner Travis Kavulla, R-Great Falls, who represents the Hi-Line, was skeptical about the sale, though he voted to approve it with stipulations. He said Monday he was glad NorthWestern appeared to be following up on its promise to hire Devon workers.

“Press releases from NorthWestern are all well and good, but obviously, the proof of the promises that their ownership will be beneficial to the Hi-Line rests with their actions, not their words,” Kavulla said.

“I plan to keep my eyes peeled and will watch their performance closely,” he said, asking Hi-Line residents to report any problems to the PSC.