Consent

D.C. Businesses to Get Customer Choice

More than 250 commercial gas customers in the District ofColumbia will soon have the opportunity to choose a gas supplierother than Washington Gas. The District of Columbia Public ServiceCommission (PSC) approved the company’s request to offer choice inthe District to large commercial customers who use at least 60,000therms/year and who do not maintain an alternate to gas service.(60,000 therms is about 60 times what the average residentialheating customer uses annually.) Large interruptible customers whouse more than 250,000 therms annually have had supplier choicesince 1988.

February 25, 1998

Enron Financing Gas-to-Liquids Plant

Enron Capital & Trade Resources Corp. (ECT), SyntroleumCorp., and SLH Corp. contributed a total of $3 million to funddetailed engineering, land purchase and other development costs foran 8,000 barrel/d gas-to-liquids specialty product plant inSweetwater County, WY, to be developed by Syntroleum. Subject toconditions, ECT committed an additional $14.5 million for aminority interest in the plant.

February 25, 1998

Producers Seek Extension of Refund Deadline

A group of natural gas producers and marketers has asked FERC toextend until July 9th the deadline for producer payments of anestimated $500 million in customer refunds. The refunds, which aredue March 9th, are owed to customers who purchased gas produced inKansas during the 1980s at costs that, because they included thestate’s ad valorem tax, exceeded the level allowed under theNatural Gas Policy Act (NGPA).

February 25, 1998

Viking Voyageur Accuses ANR of Trying to Derail Project

Viking Voyageur Gas Transmission called on FERC to dismiss ANRPipeline’s latest attacks on its project, saying they were”thinly-veiled” efforts to prevent, or “at least delay for as longas possible,” construction of a pipeline project that would bringsorely-needed competition into ANR’s Wisconsin market area.Voyageur, which would import Canadian gas into several Midwestmarkets, “is a significant threat to ANR’s market dominance inWisconsin. As a result, ANR has made every possible effort tothwart the Commission’s pro-competitive policies by delayingVoyageur’s project,” the proposed pipeline said in comments at theCommission [CP98-65].

February 25, 1998

Transportation Notes

Nautilus Pipeline offshore southeast Louisiana reported havingto shut down Sunday evening until further notice due to a largeslug of liquids being handled at the slug catcher. Nautilus toldshippers Monday they were released to flow to other systems “forthe next seven to 10 days.” Inquiries about the line’s recentvolumes were not answered Tuesday.

February 25, 1998

PNGTS Extension Gets An NEB Nod

The upstream Canadian portion of the Portland Natural GasTransmission Project – the PNGTS Extension, which will link theU.S. pipeline with TransCanada PipeLines via an extension of theTrans Qu‚bec & Maritimes — received a favorable environmentalreview from Canada’s National Energy Board. The NEB concluded the132-mile extension is “not likely to cause significant adverseenvironmental effects, provided that the mitigative measuresidentified during the public hearing are implemented and enforced.”The NEB submitted its Comprehensive Study Report on the project tothe federal Minister of Environment and to the CanadianEnvironmental Assessment Agency last week

February 24, 1998

Industry Brief

The National Energy Board has started preparing a reportentitled Canadian Energy Supply and Demand 1998-2025, which isscheduled to be published in 1999. It will provide an analysis ofenergy trends, issues and developments impacting Canada over thenext quarter century. The Board will be taking public comments toobtain the views of interested parties. Written comments or papersmust be received no later than May 12. The first round of publicconsultations will take place in informal workshops in April invarious cities across the country. The Board has identified thefollowing tentative dates and locations for these publicconsultations: Calgary (April 8), Toronto (April 15), Montreal(April 17), Halifax (April 20), Ottawa (April 22) and Vancouver(April 28). Specific dates and locations will be finalizedfollowing the receipt of responses by interested parties. Fordetails see NEB’s website at www.neb.gc.ca/home.htm, or contactLorna Patterson at (403) 299-3987. Registration to participate inpublic discussion groups must be received no later than March 20

February 24, 1998

Transportation Note

El Paso said effective March 1 it will offer four dailyscheduling cyles instead of two, additional reduction codes,enhanced pooling, enhanced bumping for firm shippers and extra helpmatching up DUNS numbers at certain points on the line. It alsowill modify the procedures used to balance pools. See the PassPortbulletin board for details

February 24, 1998

A Few Small Upticks Mix with Overall Flatnes

February prices were flat to a little higher Monday, sourcesreported. One said buyers thought they would be able to knockprices down, “but you couldn’t.” There is plenty of demand and it’svirtually all storage-related, he went on. “All of a sudden we’reseeing February turn into an injection month,” and that’s what iskeeping demand high, he said

February 24, 1998

March Futures Limp Toward The Finis

Expiration week is supposed to be about extreme volatility atthe New York Mercantile Exchange, but the March natural gascontract exhibited anything but that on Monday. The spot monthinched 1.9 cents lower to $2.179 yesterday, amid a session bound bya tight 4-cent trading range

February 24, 1998