1999

Virginia’s State Corporation Commission (SCC) said it plans touse the full 180 days allowed by Virginia law before ruling onDominion Resources’ merger with CNG. The announcement was made justtwo weeks after CNG cited fewer potential regulatory problems as amain reason for selecting the Dominion bid over a hostile offerfrom Columbia Energy Group (See Daily GPI, May 13). If the SCCtakes the full 180 days, a decision would not be reached until Nov.17.

Williams Gas Pipelines’ Lew Posekany made a proposition lastweek that would make most pipeline customers cringe in disbelief-that FERC in its quest to create a more competitive natural gasmarket should toss out some of the notions of fairness that havebeen woven into its transportation regulations over time.

Can you trust a marketer with all of your regulated assets? It’sa question many LDCs are asking themselves these days asderegulation and competition are stranding more and more supplycontracts, upstream transportation and storage. But there’s no easyanswer, according to several panelists speaking at NGI’sGasMart/Power ’99 in Dallas last week.

Major pipeline-only companies for the most part turned in”better-than-expected” performances during the first quarter of theyear, while integrated pipelines took some big hits – particularlyin the oilpatch, gas analysts said. Fortunately for someintegrateds, the bigger profits from their unregulated activitieshelped to offset the losses.

Major improvements in well productivity from new technology andhigher success rates in gas drilling will help producers meetanticipated robust growth in U.S. gas demand over the next twodecades, according to a Gas Research Institute study.

Regulations pertaining to the construction of new pipelineprojects took the spotlight at FERC last week, with the Commissionissuing a final rule aimed at updating and streamlining thecertificate process for new projects, while at the same timeproposing an initiative that would give landowners greaterparticipation in the process.

After spiking as much as 7 cents higher in the Wednesday eveningAccess session, the new prompt month was the focus of muchconjecture and speculation. Would June continue higher, followingthe example set by May, or fall from its already lofty perch? Formany, it is still too early to tell, but if yesterday’s priceaction was any indication, June will have a difficult time matchingMay’s 50-cent price increase over the past month. After opening at$2.40, the June contract tumbled throughout the session to close at$2.339, a 0.2-cent decline from Wednesday’s close.

Regulations pertaining to the construction of new pipelineprojects took the spotlight at FERC yesterday, with the Commissionapproving a final rule aimed at updating and streamlining thecertificate process for new projects, including a change in thetimetable for the filing of project-related environmental data.FERC also proposed an initiative that would give landowners greaterparticipation in the certification process.

Mississippi Canyon Gas Pipeline won blessing in a draft orderfrom the FERC for firm capacity expansion from 600 MMcf/d to 800MMcf/d. Mississippi Canyon – formerly Shell Gas Pipeline -operates a 45-mile dual-phase line from the West Delta Block 143″A” platform on the Outer Continental Shelf offshore Louisiana toterminus near the Venice Gas Plant in Plaquemines Parish onshore inLouisiana. The capacity increase is to come from establishingmaximum receipt and delivery point pressures and installation ofadditional metering facilities on the pipeline’s existing system atthe Venice plant delivery point.