NGI Staff Reports

Amoco Production last week asked FERC to stay the disclosure of a private settlement with Natural Gas Pipeline Co. of America (NGPL) while it considers the producer’s rehearing request addressing the confidentiality of the document.

Indicated Producers wasted little time last week in seeking rehearing of a FERC order that spelled out procedures for producers to repay $500 million to customers who purchased gas produced in Kansas in the 1980s at prices that, because they included the state’s ad valorem tax, exceeded the allowed federal limits.

Citing concerns over the funding settlement that was negotiated last month, NorAm Gas Transmission has notified the Gas Research Institute (GRI) it will resign its membership effective Feb. 22. With this move, NorAm will follow in the footsteps of Koch Gateway Pipeline, which effectively severed all ties with GRI on Jan. 1.

Robust activity in the Gulf of Mexico is one driver for a budgetincrease being sought by the U.S. Department of the Interior’sMinerals Management Service (MMS).

FERC has scheduled a technical conference for 10 a.m. March 3 at a Commission hearing room to address the issues of El Paso Natural Gas’ proposed contracts with Natural Gas Clearinghouse and other shippers for one third of its gas transportation capacity, or 1.3 Bcf/d (Docket No. CP97-667-001). The Commission also plans to address the issue of Southern California Gas as “gatekeeper” at the Topock delivery point.

Matching the size of natural gas mega-mergers south of the border, the planned C$11 billion combination of TransCanada PipeLines and NOVA Corp. announced last week would integrate pipeline control of the main Canadian producing province and transportation across the top of the continent to U.S. and Canadian markets.

Financial analysts and pipeline executives descended on the Federal Energy Regulatory Commission last Friday to urge that regulated pipeline returns be improved because they have fallen so far behind that the financial market is being driven away. On the other side of the debate, however, producers labeled pipelines cash cows that should be reined in. And other observers advised the Commission to stick with the status quo.

With Union Pacific Resources Group’s (UPR) acquisition of Norcen Energy Resources, the company would gain core areas in Canada and Latin America, as well as a stronger position in the Gulf of Mexico, including the deep-water region.

The new combination of Nova Corp. and TransCanada PipeLines faced its first major challenge as soon as the pair came together-making peace with an irate production community angered by the Canadian gas-transportation establishment’s behavior toward Alliance Pipeline Project.