Avoid

New Orleans-based Energy Partners Ltd. (EPL), which has been trying to avoid a takeover by Australian-based Woodside Petroleum Ltd. subsidiary ATS Inc., on Monday lowered its 3Q2006 production guidance, citing equipment delays and mechanical issues at its South Timbalier and Eugene Island leases.

A House Government Reform subcommittee will hold another hearing Thursday to explore why some of the largest producers have managed to avoid paying royalties on production from deepwater oil and natural gas leases that were issued by the federal government in 1998 and 1999.

Seeking to avoid misinterpretations of the revised draft environmental impact report (EIR) for the BHP Billiton proposed offshore terminal along the Southern California coast, the Washington, DC-based LNG industry information clearinghouse, Center for Liquefied Natural Gas (CLNG) attempted Thursday to clarify the document and “put it into appropriate context.” A Houston-based BHP Billiton spokesperson said the Australian-based proponents did not ask the CLNG to intervene.

Kern River said Tuesday it was able to avoid “same day cuts” for shippers despite supply shortages that occurred at Opal and Anschutz during Monday’s gas day, but the combination of these shortages and the drafting that occurred that day resulted in a “very low” linepack level throughout its system. If linepack dropped further Tuesday, the pipeline said it may be necessary for it to physically prevent further drafting Wednesday and to impose mandatory payback (by physically limiting deliveries) to parties that drafted Tuesday. “Please ensure that your supplies are sufficient to cover all your deliveries,” Kern River concluded in a note to customers.

In order to avoid the volatile spot market and lock in a discount on gas supply, Public Gas Partners, Inc. (PGP), a non-profit gas agency formed a year ago by seven southeastern municipal utilities, said Tuesday that it purchased 115 Bcfe of proved natural gas reserves (73% proved, developed and producing) and 30 Bcfe of probable and possible reserves in four gas transactions at a total cost of about $330 million.

FERC Commissioner Nora Brownell last week made the case for why it would make sense for the Commission to avoid adopting a one-size-fits-all approach to the crafting of a policy on incentives designed to boost investments in the nation’s transmission infrastructure.

Utilities in the Pacific Northwest appear likely to largely avoid the significant gas price increases that will be seen in the Midwest and eastern United States this winter because of different supply sources. The Northwest Gas Association (NGA) said Tuesday that utility customers can expect much smaller winter price increases than what consumers will be seeing in other regions that are more closely tied to damaged supply infrastructure in the Gulf of Mexico and Gulf Coast.

Canadian regulators should avoid forcing gas utilities out of the regulated merchant function, according to a new discussion paper by Roland George of consulting firm Purvin and Gertz. “System gas and direct sales gas can co-exist in the retail market,” George said. The paper was released recently by the Conference Board of Canada and Canadian Gas Association (CGA), which represents Canada’s local distribution companies (LDC).

Canadian regulators should avoid forcing gas utilities out of the regulated merchant function, according to a new discussion paper by Roland George of consulting firm Purvin and Gertz. “System gas and direct sales gas can co-exist in the retail market,” George said. The paper was released recently by the Conference Board of Canada and Canadian Gas Association (CGA), which represents Canada’s local distribution companies (LDC).