2005

Congress and the Commodity Futures Trading Commission (CFTC) should investigate daily trading limits, hedge fund activity, and the number of contracts that can be held by a single entity to determine if these elements are increasing volatility and prices, a Dow Chemical company representative told energy committee senators Monday.

Helped higher due in part to colder than normal temperatures and winter storms in the Northeast, February natural gas futures on Monday explored higher. After reaching a high at $6.51, the prompt month went on to settle at $6.476, good for a 23.6-cent increase on the day. Awaiting its turn as the prompt month, March futures also achieved a 25.3-cent increase on the session to settle at $6.516.

Dallas-based TXU Corp. said Friday that it will pay $150 million to settle a class action lawsuit filed in October 2002 related to its 2002 stock price collapse over credit troubles involving its European operations. In settling the litigation, TXU Corp. denied any liability.

With a new combination of regulators this year on the elected five-member New Mexico Public Regulation Commission (PRC), a split among the group surfaced recently when two of the commissioners walked out of a closed session that resulted in the firing of two top PRC staff members. The chief of staff and administrative director were let go on 3-0 votes, and a new acting staff head was named from among existing staff.

Canadian producers heaved sighs of relief when a blowout of “sour” natural gas, laced with lethal hydrogen-sulphide, was capped according to a plan devised by a Texas master of wild well control without causing serious injuries on the western boundary of the Alberta capital of Edmonton.

Citing conflicts between federal statutes and challenges from state agencies, an interstate natural gas pipeline group has called on Congress to eliminate regulatory confusion by legislating that the Federal Energy Regulatory Commission is the lead federal agency over the approval and siting of interstate gas pipeline, storage and liquefied natural gas (LNG) projects.

With a break due in some areas Wednesday from a plethora of winter storms, prices fell in double-digit amounts at all points Tuesday. But sources expect quotes to rally again Wednesday since a new and even more severe blast of winter is expected to commence Wednesday night or Thursday in most regions outside the southern tier of states.

Before he was officially replaced Tuesday by one of the three members from the state public utilities commission, Nevada’s lame duck Consumer Advocate Tim Hay fired a legal broadside against Reliant Energy and some of its affiliates, alleging they conspired with now bankrupt Enron Corp. to drive up wholesale power and natural gas costs in Nevada and California during the infamous 2000-2001 energy market meltdown.

The trial date for one of five former natural gas traders who were indicted in late November on charges of reporting false trades has been pushed back to August from February, according to a published report. The trials of four other ex-traders also may be rescheduled.