Affiliate

Western Gas Resources and an affiliate of Colorado InterstateGas announced plans to build a 90-mile 20-inch diameter gatheringsystem and a treating facility to serve the Powder River Basin ofWyoming. The line will be designed to reach the heart of thecoalbed methane development in Campbell and Converse Counties innortheast Wyoming. The system would have an initial capacity of 200MMcf/d, but anticipated participation by third parties will likelycause the system design to be extended and expanded, the companiessaid.

Tesoro E&P Company L.P., a wholly-owned affiliate of TesoroPetroleum Corp., announced earlier this week it purchased a 50%working interest from Sheridan Energy in the Stiles Ranch Fieldnorth of Amarillo, TX.

Cross Bay Pipeline partners the Williams Companies and DukeEnergy signed up KeySpan Energy Development as a third partner inthe project to move gas from interstate pipes in New Jersey to NewYork City and Long Island. The project will make use of existingpipes operated by Duke’s Texas Eastern Transmission (TETCO) andWilliams’ Transcontinental Gas Pipe Lines (Transco). KeySpan is asubsidiary of MarketSpan Corp., which is the parent of LDC BrooklynUnion.

The sale of Ozark Gas Transmission to an Enogex affiliate hasbeen completed, but it remains to be seen whether the FERC willbless Enogex with the rates it seeks for an interstate pipelinecomposed of the combination of Ozark and its currentlynon-jurisdictional NOARK Pipeline.

The American Gas Association is seeking to get its two cents’worth in on the conduct of affiliated marketers by adopting eightprinciples intended to guide state officials in policymaking. “AGAbelieves that state officials already have ample authority toreview relationships between natural gas utilities and theiraffiliates,” said Miriam Swydan Erickson, AGA senior director ofgovernment relations. “The new AGA principles are intended toassist state regulators considering additional rules.”