Question-and-Answer Session
Thank you sir. We will now begin the question-and-answer session. [Operator Instructions]. And we have no audio questions at this time. Actually, we just had one pop-in, it's from Ted Durban [ph] Goldman Technologies. Please go ahead.
Unidentified Analyst
Hey, it's Ted Durban with Goldman Sachs. A question for you on the storage project. Maybe you just talk about when do you think you might know if it is actually a feasible project what you are drilling and what not, what the timing would be like? And then in terms of the overall supply and demand balances for gas storage in the Gulf region and may be even specifically to the geography where you are on sort of, off of the coast up in Northeastern Louisiana versus on the Coast?
J. Patrick Reddy - Senior Vice President and Chief Financial Officer
Well as far as the economic or when we will be able to determine if we have a project or not, the next eight months would be critical to that. We will have all kinds of activity, power market studies, and we will have test wells further geophysical staff activity. So that should, we should have a decision whether we are going move forward because we'll also have a non-binding open season, and all those will give us indications as to... as to the viability of the project.
As for the need for storage in that area, our studies have indicated that there is still... although there have been some other projects announced, there is a very large need for storage because of the... a lot of the gas production coming out of Barnett Shale, Bossier Sand is going to be moving in that directions. We will be able to support some of the operations that allow those pipelines. It's very near to Perryville Hub, a lot of pipeline networks as Bob mentioned earlier and the proliferation of LNG is expected to be coming into that region will also be advantaged by additional storage. So our study seem to indicate that it is... there is a quite a bit of need at this time for that matter of that project.
Unidentified Analyst
Okay, great. And then just couple of other questions on that, what are the steps in terms of getting permitting at the Federal level and the local level? How long do you think that will take? And then what kind of... just high level returns, might you be looking for on return-on-capital or what not?
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