Arising

A judge in Roswell, NM, has consolidated five lawsuits that are pending against El Paso Natural Gas as a result of the August 2000 fiery explosion on the pipeline’s South Mainline in New Mexico that killed 12 members of two extended families (see NGI, June 25; Aug. 28, 2000).

A judge in Roswell, NM, last week consolidated five lawsuits that are pending against El Paso Natural Gas as a result of the August 2000 fiery explosion on the pipeline’s South Mainline in New Mexico that killed 12 members of two extended families.

Many of the “incendiary” allegations arising from Natural GasClearinghouse’s (NGC) acquisition of 1.3 Bcf/d of firmtransportation capacity from El Paso Natural Gas – that thecontracted amount far exceeded NGC’s market needs, that NGC hasacquired monopoly control over pipeline capacity into California,that California border prices have shot up as a result, and thatthe contracts contain a “covenant” whereby NGC and El Paso haveagreed not to compete – have generated a lot of smoke, but no realfire, the Houston-based gas marketer says.