California energy regulators yesterday identified 10 items forpotential natural gas industry restructuring, most of which dealwith wholesale or large customer operations. State regulators alsoencouraged utilities and large customers to cease their bickeringand come up with a broad-based settlement on gas unbundling.
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Georgia PSC Softens Ultimatum to Customers
The Georgia Public Service Commission (GPSC) unanimously decidedlast week to allow customers to switch from Atlanta Gas Light (AGL)after the previously-determined Aug. 11 deadline, the date when theCommission determines market share among the competing suppliers.Commissioner Robert Baker said the vote will help dispel the rumorof Aug. 11 being a drop-dead date.
Georgia PSC Softens Ultimatum to Customers
The Georgia Public Service Commission (GPSC) unanimously decidedearlier this week to allow customers to switch from Atlanta GasLight (AGL) after the previously-determined Aug. 11 deadline, thedate when market share is determined among the competing suppliers.Commissioner Robert Baker said the vote will help dispel the rumorof August 11 being a drop-dead date.
Industry Briefs
Tennessee Gas Pipeline has asked FERC to declare five lateralsin Texas as non-jurisdictional gathering and allow it to abandonand sell them to affiliate El Paso Field Services. The WestMagnolia, Chesterville, Bay City, Hungerford, and Village MillsLateral Systems fit the description of gathering, Tennessee said,adding that they currently are little used. The pipeline said it isno longer necessary for it to own the gathering lines since it nolonger sells bundled gas services. Detaching them from theTennessee system will “improve Tennessee’s ability to streamlineits mainline transmission operations.” Also the systems would bebetter able to compete with other unregulated gathering services ifthey are not tied to a jurisdictional pipeline.
Transportation Notes
El Paso will will allow neither injections nor withdrawals whenit shuts in the Washington Ranch storage facility April 19-25 formaintenance. Saying the project will severely limit its flexibilityin controlling linepack, El Paso asked in advance for customercooperation in “balancing very closely” scheduled receipts anddeliveries.
Nicor to Test Performance Against a Benchmark
Nicor Gas has filed a performance-based rate proposal with theIllinois Commerce Commission that would allow the company and itscustomers to save money if Nicor’s commodity, transportation andstorage costs are lower than a fluctuating benchmark. The benchmarkwill be based on a bushel of published gas price indexes, plusaverage transportation costs over the prior year and actual storagecosts. The PBR is expected to be in place starting next January.
SPR To Be Filled With Royalty Oil
Energy Secretary Bill Richardson last week announced the Clintonadministration will allow producers with offshore federal leases topay part of their royalties with oil for a limited time rather thanwith cash. With this action, DOE would draw down the oil oversupplythat has been depressing prices and provide some relief, if onlytemporarily, to small oil and gas producers. Richardson indicatedthe department will announce further initiatives this week to boostlagging oil and gas production in the United States.
Richardson Will Fill SPR With Royalty Oil
Energy Secretary Bill Richardson last week announced the Clintonadministration will allow producers with offshore federal leases topay part of their royalties with oil for a limited time rather thanwith cash. This action would help to draw down the oil oversupplythat has been depressing prices and provide some relief, if onlytemporarily, to small oil and gas producers. Richardson indicatedthe department will disclose further initiatives this week to boostlagging oil and gas production in the United States.
ARCO, Mobil Exchange Properties
Atlantic Richfield (ARCO) and Mobil Exploration & ProducingU.S. yesterday announced that they closed an exchange transactionthat will allow ARCO subsidiary Vastar Resources to boost its gasproduction and reserve activity level in the Gulf of Mexico shelfby one third, and Mobil’s exploration and production arm tosignificantly increase its stake in California production. The dealclosed on Oct. 31st.
AGA Sees Columbia as Test Case
The proposal of Columbia Gas Transmission and Columbia GulfTransmission calling for FERC to allow the negotiation of terms andconditions of pipeline services would provide a “usefulimplementation tool for enactment of a generic program,” theAmerican Gas Association says.