Canada

It didn’t take a millennium; it just seemed like it at times. Finally, after years of controversy over its route, including protestors on FERC’s doorstep, the Commission last week approved the U.S. leg of the Millennium Pipeline, a 424-mile line from the Canadian border under Lake Erie to the New York City market area, originally proposed in December 1997 [CP98-150].

It didn’t take a millennium; it just seemed like it at times. Finally, after years of controversy over its route, including protestors on FERC’s doorstep, the Commission Wednesday approved the U.S. leg of the Millennium Pipeline, a 442-mile line from the Canadian border under Lake Erie to the New York City market area, originally proposed in December 1997 [CP98-150].

Alliance Pipeline L.P. contends its 1,900-mile Canada-to-Midwest system and a number of other new pipelines that have cropped up over the past six years wouldn’t have been built if it hadn’t been for FERC’s negotiated rate policy. If some pipes are abusing the policy, then the Commission should make specific changes to remedy the situation, but it shouldn’t throw the baby out with the bath water, the pipeline said.

Alliance Pipeline L.P. contends its 1,900-mile Canada-to-Midwest system and a number of other new pipelines that have cropped up over the past six years wouldn’t be here if it hadn’t been for FERC’s negotiated rate policy. If some pipes are abusing the policy, then the Commission should make specific changes to remedy the situation, but it shouldn’t throw the baby out with the bath water, it said.

Canadian-based producers EnCana Corp. and Devon Canada Corp. have agreed to cooperate on developing the natural gas and bitumen resources at EnCana’s Christina Lake thermal recovery project in northeastern Alberta. The competing development plans, in which Devon was producing gas and EnCana wanted to produce bitumen, had been stalled after EnCana protested Devon’s project. The companies were awaiting a hearing by the Alberta Energy and Utilities Board (AEUB). The agreement, reached this week, will allow the companies to pool their resources and money on both projects.

Canada’s National Energy Board (NEB) is seeking public input on new approaches to dispute resolution. The objective is to develop effective options for preventing and managing conflict as an addition to NEB’s current regulatory approach.

With much of the U.S. and Canada still frigid from last week and renewed cold having returned to the South and Northeast, there was no surprise when prices rose nearly across the board Monday. There was quite a bit of variation among the amounts of increase, however. The Midcontinent/Midwest, Rockies, California and a few Gulf Coast points measured their gains generally in the vicinity of a dime or slightly more. The rest of the Gulf Coast tended to rise by either side of 20 cents, while Northeast citygates were up 30-55 cents.

PanCanadian Energy Corp. and MGV Energy Inc., the Canadian subsidiary of Quicksilver Resources Inc., announced first production from a promising new coal-bed methane (CBM) development in the Western Canadian Sedimentary Basin. The companies said they are planning a 250-well CBM development within the Palliser block in Alberta later in 2002.

PanCanadian Energy Corp. and MGV Energy Inc., the Canadian subsidiary of Quicksilver Resources Inc., announced first production from a promising new coal-bed methane (CBM) development in the Western Canadian Sedimentary Basin. The companies said they are planning a 250-well CBM development within the Palliser block in Alberta later in 2002.