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California energy regulators, all appointees of outgoing Gov.Pete Wilson, last week requested a meeting after Labor Day with thegovernor in an attempt to head off new state legislation that couldfurther hinder ongoing attempts to streamline regulation and injectmore competition into the natural gas industry. The president ofthe California Public Utilities Commission calls one of the bills”truly anti-competitive.”

Canadian approvals are expected to fall into place within thenext three months after the U.S. leg of the Alliance PipelineProject earned its environmental seal from FERC last week. “Thisputs us firmly on track,” Alliance spokesman Jay Godfrey said.FERC’s approval of the final environmental impact statement (FEIS)firmed up a schedule that – following a one-year delay due to aprolonged fight before Canada’s National Energy Board – calls forconstruction of the C$3.7-billion (US$2.6-billion), 1.3 Bcf/dpipeline to start next spring. That will be in time for completionand a start on deliveries in the fall of 2000, Godfrey said.

Bill Richardson was sworn in as the new energy secretary onTuesday, one day after Senate Energy Committee Chairman FrankMurkowski (R-AK) cleared him of allegations that he may have misledCongress when testifying during his confirmation hearing last monthabout a job offer he made to former White House intern Monica S.Lewinsky.

All the gas flowing to the Florida peninsula was cut off overthe weekend after a lightning strike Friday afternoon caused a fireand pipe rupture at Florida Gas Transmission’s Station 15 nearPerry, FL, and knocked out all downstream service. The 24-inch,30-inch and 36-inch mainlines that converge in the station yardwere affected.

The futures market opened lower on Thursday, but aftersustaining an initial round of selling, the prompt month managed toclaw its way back up to $1.817, a 0.2 cent decline for the day.That left the September contract still perched just above long term support at $1.78 yesterday, trading within a narrow 4-cent range.Estimated volume registered an unremarkable 40,943.

For the second week in a row, the futures market was unable tobuild on advances posted early in the week, and after the Septembercontract flirted with, but did not break through resistanceTuesday, again came under significant selling pressure that leftthe prompt month down 8.3 cents to settle at $1.812.

The promised new era of competition is officially off andrunning in Canadian gas transportation after the National EnergyBoard approved a small project with large implications, AECSuffield Gas Pipeline Inc.

After taking Tuesday’s small gain in stride, the bears were atit again yesterday pushing the August contract to test the bottomof a descending channel that has limited movement in the contractsince July 1. However, support held and light buying ensued pushingthe contract up to close at $2.231, down 3.5 cents for the day.

After several years on hold because of poor Rocky Mountainregion market conditions, TransColorado Gas Transmission’s Phase IIexpansion project is proceeding and should be in service inDecember. FERC approved the 300 MMcf/d expansion last week as didthe Bureau of Land Management and the U.S. Forest Service.