Approving

A federal appeals court in Washington, DC, rejected a small producer’s petition for review of a FERC order that permitted a neighboring natural gas pipeline operator to expand its underground storage facility onto the producer’s property, effectively taking away its interest in the land.

FERC put an end to one of the most tortuous cases in its history last Thursday, approving with one modification a $1.7 billion settlement of California’s allegations that an El Paso Corp. pipeline drove up natural gas prices in the state by withholding capacity during the state’s energy crisis, and that it gave preferential treatment to its power merchant affiliate during bidding on transportation capacity.

FERC put an end to one of the most tortuous cases in its history Thursday, approving with one modification a $1.7 billion settlement of California’s allegations that an El Paso Corp. pipeline drove up natural gas prices in the state by withholding capacity during the state’s energy crisis, and that it gave preferential treatment to its power merchant affiliate during bidding on transportation capacity.

A test case has told the natural gas industry it can venture offshore of Canada’s west coast – if it is willing to wade through seas of environmental protest and local political resistance in British Columbia.

Without admitting any wrongdoing, National Fuel Gas Supply Corp. has entered into a consent agreement with FERC enforcement authorities to settle charges that the interstate pipeline gave preferential treatment to certain select customers, including its natural gas marketing affiliate, from 1999 through mid-2002.

Nine months after approving a settlement to unbundle the Southern California Gas Co. backbone transmission and underground storage systems, stakeholders and California regulators are still waiting for it to happen (see Daily GPI, March 18; Dec. 12, 2001)

Nine months after approving a settlement to unbundle the Southern California Gas Co. backbone transmission and underground storage systems, stakeholders and California regulators are still waiting for it to happen (see Daily GPI, March 18; Dec. 12, 2001)

Demonstrating a newfound consensus often absent over the past 12-15 months, California’s regulatory commission last week unanimously approved a half-dozen energy items on its regular business meeting agenda, including added debt authority for Las Vegas-based Southwest Gas Corp. and a new statewide hearing process looking at the potential rate impact of the two alternative reorganization plans in Pacific Gas and Electric Co.’s ongoing Chapter 11 bankruptcy case.

An environmental analysis by the Bureau of Land Management (BLM) has found that approving eight natural gas wells on existing federal leases north of the Missouri River within and adjacent to the Upper Missouri River Breaks National Monument in Montana would have little environmental impact. BLM has recommended approval of the wells, but said it will not make a final decision until after a public comment period ends in mid-February.