By the Star Tribune Editorial Advisory Board/Casper

Two proposed natural gas pipelines that would greatly expand capacity for Wyoming producers have been recommended for approval by the staff of the Federal Energy Regulatory Commission.

That’s great news for the state, especially as it tries to recover from the recession, which hit the natural gas industry hard in 2009. Thanks to lower demand for their product, companies began storing more gas and saw prices plummet. Natural gas production in Wyoming, which had nearly doubled since 1997 and saw a record 2.4 trillion cubic feet in 2008, is expected to down in 2009.

The lower prices and production resulted in lower tax revenues for state government, and increased unemployment as companies laid off workers in the field.

For several years, Wyoming gas producers suffered because a lack of natural gas pipeline capacity forced them to accept prices significantly lower than producers received in other parts of the country. This gas price differential, however, has evaporated, helped by the completion of a new major pipeline, Rockies Express, which became fully operational in November. Prices, meanwhile, have increased from about $2 per thousand cubic feet in 2008 to around $5.25 per mcf.

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