Anticipated

Williams said Thursday it expects to resume normal operationsSunday, one day earlier than previously anticipated, on Line Segments490 and 491. The pipeline had declared a force majeure for thesegments following a compressor failure at its Riner Station (seeDaily GPI, Aug. 3).

Sonat was unable to begin repairs Thursday as anticipated (seeDaily GPI, July 27) on a July 5 rupturein its offshore 14-inch Romere Pass Line. However, the work likelywill begin today and last 10-15 calendar days, which means the lineshould be back in service around Aug. 12 at the latest, a spokeswomansaid. An estimated 50-100 MMcf/d at five platform receipt points isbeing shut in by the outage.

Cash prices plunged as expected Thursday, with nearly everypoint in all markets down between 20 and 30 cents.

Forest Oil Corp. announced the completion of the Liard pipelineand initial production from the P-66A Well in the NorthwestTerritories. Production rates are anticipated to increase graduallyduring the next several weeks to a target rate of 35 to 50 MMcf/d,resulting in net sales of gas by Forest of 15 to 20 MMcf/d.Production is being transported and processed through the Westcoastsystem. Based on current prices, processing and transportationfees, and production costs, the netback for the production fromthis field is US$2.25/Mcf, the company said. Production from theFort Liard area is the first new gas to be brought on stream in theNorthwest Territories since the Pointed Mountain field in the early1970s. Forest has achieved production within 40 months of itsinitial participation in the Flett exploration program. Thisrepresents a significant achievement considering the remotelocation and lack of infrastructure in the area. It is expectedthat substantial reductions in cycle times will be achieved as aresult of the company-owned facilities now in place.

Except for a lackluster, slightly lower performance at severalNortheast citygates, the cash market was flexing its muscles like avain pro wrestler Thursday. Price hikes that generally rangedbetween a nickel and a dime dominated the landscape, althoughCalifornia firming was milder except at capacity-constrained Malin.

After 18 months in the making, the much-anticipated mega-rule,initiating a host of post-Order 636 gas transportation and ratereforms made its public debut last week. The rule got good reviewsfrom pipeline customers but immediate criticism from a majorinterstate pipeline.

After 18 months in the making, FERC yesterday unveiled itsmuch-anticipated mega-rule that tackles a full plate of post-Order636 reforms designed to promote greater efficiency and fairness inan ever-changing natural gas market.

MRT issued an OFO Tuesday due to anticipated cold weather andoperational conditions; the order will remain in effect today anduntil further notice. It is interrupting all IT volumes andAuthorized Overrun gas flowing on the mainline north of theGlendale, AR, Station. MRT will not allow underdelivery of gasduring this time but will continue to accept positive imbalancenominations.

Late-November swing prices got “crushed” Monday, burdened bothtechnically by a slumping futures screen and fundamentally by acontinuing surplus of unseasonably warm weather, a Texas-basedproducer lamented. Virtually all points dropped between a nickeland about 15 cents, with declines in the vicinity of a dime beingmost common.