Association

The Natural Gas Supply Association (NGSA) last week called intoquestion Vice President Al Gore’s pledge to continue the drillingban along the Florida and California coasts if he’s electedpresident. “The producers of natural gas are dismayed by yourrecent announcement” to stop in its tracks any drilling along thesetwo coasts, where it’s believed more than 40 Tcf of gas may beavailable, wrote NGSA President R. Skip Horvath in a letter toGore. “Denying access to this environmental fuel, some of whichresides offshore, appears inconsistent with the goal for a cleanerfuture.”

If there were any market bears at the 55th annual meeting of theInterstate Natural Gas Association of America, they must have beenscared into the closet by Curt Launer, vice president of theresearch department at Donaldson, Lufkin & Jenrette, and TomasA. Petrie, CEO of Petrie Parkman. Petrie sees $30/bbl oil and$3/Mcf or higher natural gas in the near future.

The Building Owners and Managers Association (BOMA) of GreaterTucson, AZ, chose New Energy Ventures as the energy serviceprovider for its members with the goal of lowering members’electricity costs.

The American Gas Association has added its voice to those whowould protect the pocketbooks of current customers and requiresponsors of new pipeline construction to bear the risk of theprojects.

A survey released yesterday by the American Gas Association of69 gas local distribution companies shows LDCs last winter made ashift to more short-term gas supply contracts. The percentage ofpeak-day gas purchases made under long-term supply agreementsdeclined to 35% in winter 1998-99 from 38% in winter 1997-98, andthe percentage of LDCs with more than half of their peak-daypurchases under long-term arrangements dropped to 38% from 47%during the previous winter. Spot market purchases accounted for 10%of peak-day supplies on average compared to only 5% during theprior winter, AGA said. Storage deliveries comprised 41% ofpeak-day gas supplies.

While the American Gas Association (AGA) report loomed at theend of Wednesday’s trading, moderate temperature forecasts and theeasing of New England and New York electricity jams were enough tocause drops of more than a nickel in the Northeast. The New Yorkcitygate ended the day in the mid $2.50s after ascending to the mid$2.70s on Monday.

Nicholas J. Bush, former president of the Natural Gas SupplyAssociation (NGSA), has been charged with one count of criminalmail fraud and one count of tax evasion in connection with his rolein the embezzlement of more than $2.8 million from the producertrade group.

For the second straight Thursday, natural gas traders ignored aseemingly bullish American Gas Association storage report bypressuring the market lower in light, long liquidation. The Junecontract was the hardest hit by the sell-off, slipping 6.4 cents to$2.295 in active trading.

An attorney for the Natural Gas Supply Association (NGSA)revealed Friday that the civil investigation into the allegedembezzlement activities of the group’s ousted president, NicholasJ. Bush, has spread to Canada.