Ancillary

Dozens of applications for oil and gas wells and ancillary facilities in the Dakota Prairie and Little Missouri National Grasslands in North Dakota and South Dakota are among the infrastructure projects that will be expedited through permitting and environmental review processes, President Obama announced last week.

Dozens of applications for oil and gas wells and ancillary facilities in the Dakota Prairie and Little Missouri National Grasslands in North Dakota and South Dakota are among the infrastructure projects that will be expedited through permitting and environmental review processes, President Obama announced Tuesday.

Alliance Pipeline Ltd. filed an application with Canada’s National Energy Board to construct compression and ancillary facilities at its existing Taylor Junction valve site, approximately 6 kilometers (3.7 miles) northeast of Taylor, BC, within the Peace River Regional District. The proposed expansion would enhance capacity for gas receipts originating in northeastern BC. Construction of the facilities would enable an increase in gas receipt capacity on Alliance’s BC lateral system. Alliance will not increase the mainline capacity of its system with this project, only the ability for existing shippers to increase gas nominations at receipt points in BC. The additional capacity was made available to existing Alliance shippers through a binding open season in October, and Alliance has entered into contracts with the interested shippers. Subject to regulatory approval, site foundations will be poured in Fall 2007 and the major construction activities would occur during 2008. Start-up is scheduled for November 2008.

Alliance Pipeline Ltd. filed an application with Canada’s National Energy Board to construct compression and ancillary facilities at its existing Taylor Junction valve site, approximately 6 kilometers (3.7 miles) northeast of Taylor, BC, within the Peace River Regional District. The proposed expansion would enhance capacity for gas receipts originating in northeastern BC. Construction of the facilities would enable an increase in gas receipt capacity on Alliance’s BC lateral system. Alliance will not increase the mainline capacity of its system with this project, only the ability for existing shippers to increase gas nominations at receipt points in BC. The additional capacity was made available to existing Alliance shippers through a binding open season in October (see Daily GPI, Oct. 6, 2006), and Alliance has entered into contracts with the interested shippers. Subject to regulatory approval, site foundations will be poured in Fall 2007 and the major construction activities would occur during 2008. Start-up is scheduled for November 2008.

With strong ancillary support from a half dollar-plus spike in futures the day before, cash prices found heating load remaining strong enough Tuesday to record increases at virtually all points. A new record-setting screen gain of a little more than half a dollar Tuesday and little let-up in wintry weather due across most of the U.S. and Canada make it likely that physical market gains will continue Wednesday.

FERC yesterday ordered a formal investigation of the electricrates and the structure of the California’s Independent SystemOperator (Cal-ISO) and Power Exchange (Cal-PX), as well asmarket-based sellers in the state.