The grant is subject to final completion of cultural treatment plans and related agreements on federal lands along the pipeline route.

El Paso subsidiary Ruby Pipeline LLC previously received a Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission (FERC), and will begin construction as soon as it receives an FERC Notice to Proceed and Construct.

The $US3 billion project is scheduled to be in service in March 2011.

The proposed 42 inch diameter Ruby Pipeline would transport natural gas from an existing supply hub at Opal, Wyoming, to interconnections near Malin, Oregon and have an initial design capacity of 1.5 Bcf/d.

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El Paso has entered into agreements with Global Infrastructure Partners (GIP), whereby GIP will invest up to $US700 million in the Ruby Pipeline project. Upon satisfaction of various closing conditions, GIP will acquire a 50 per cent interest in the project.