Transportation Notes

Projecting that linepack would slip below its minimum target level through Thursday, Pacific Gas & Electric issued a systemwide Stage 3 OFO, effective today until further notice. The order carries penalties of $5/Dth for negative daily imbalances exceeding a 3% tolerance.

As a result of warmer area weather and banking on its system, Northwest said it is operationally feasible to loosen conditions of its entitlement for delivery points north of Kemmerer (WY) Station. A Declared Stage II (8% tolerance) Overrun Entitlement will take effect today; through Tuesday the pipeline was in a Stage I (3%) Entitlement. A shipper is subject to penalties for overtakes north of Kemmerer that exceed an amount 8% greater than its confirmed nominations.

El Paso will take the B turbine at Cornudas Station in West Texas down for maintenance today and Thursday, reducing South Mainline capacity there by 60 MMcf/d. However, Cornudas capacity has not been fully utilized recently, the pipeline said, so this reduction should not affect current markets.

The Kinder Morgan pipeline group (NGPL, Kinder Morgan Interstate, Trailblazer, Canyon Creek, KN Wattenburg and TransColorado) reminded shippers it has a new 24-hour hotline phone number for information and questions about point confirmations and related issues: (713) 369-9683. The old hotline will stay in service through Dec. 31, but callers will hear a recording giving the new number. The current number for nomination-related issues, (713) 369-9670, is not changing, Kinder Morgan said.

Westcoast is taking bids through noon MST today on several packages of Short Term Firm Service capacity with varying paths. The service will commence Dec. 1. Minimum contract terms are one month, but bidders may seek to extend the length through Oct. 31,2001. See the Westcoast bulletin board or call Judi King at (403) 299-7703 for details.

Columbia Gulf is holding an auction through 9 a.m. CST Thursday on 25,000 Dth/d of FTS-2 capacity that will become available April 1, 2001 on the pipeline's offshore South Pass System. Such capacity holders may nominate from any SPS receipt point back to its core system at Egan, LA, for Columbia Gulf's maximum offshore rate. The receipt points include an interconnect with the Viosca Knoll System at South Pass 55. There are no limits on contract length. Call Steve Wendel at (713) 267-4769 for more information.

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