Course

Of course, commercial and industrial power consumers don’t like high prices, but it’s price volatility that bedevils their cash flows and crimps operations to the point of employee layoffs, Dominion Virginia Power CEO Paul D. Koonce told a Houston audience last week.

Natural gas futures bulls were corralled on Tuesday as the December contract reversed course from Monday’s gains and dropped below the important $4.60 support level. The prompt-month contract put in a low of $4.436 in morning trade and ended up closing out the regular session at $4.467, down 20.3 cents from Monday’s finish.

Of course, commercial and industrial power consumers don’t like high prices, but it’s price volatility that bedevils their cash flows and crimps operations to the point of employee layoffs, Dominion Virginia Power CEO Paul D. Koonce told a Houston audience Tuesday.

President Obama signed a memorandum last Tuesday that changes the course on a Bush-era regulation that allowed federal agencies to proceed with projects without consulting with the U.S. Fish and Wildlife Service (FWS) and the National Marine Fisheries Service (NMFS) about potential harm to endangered or threatened species and plants as required by the Endangered Species Act (ESA).

President Obama signed a memorandum Tuesday that changes the course on a Bush-era regulation that allowed federal agencies to proceed with projects without consulting with the U.S. Fish and Wildlife Service (FWS) and the National Marine Fisheries Service (NMFS) about potential harm to endangered or threatened species as required by the Endangered Species Act (ESA).

With a nod to the recession, NiSource Inc. business segment NiSource Gas Transmission & Storage (NGT&S) said it plans to cut 370-380 positions across its 16-state operating territory during the course of 2009. The operating segment, which houses Columbia Gas Transmission LLC, Columbia Gulf Transmission Co. and Crossroads Pipeline and holds partnership interests in Central Kentucky Transmission Co., Hardy Storage Co. and Millennium Pipeline LLC, said the structural changes are “designed to enhance operational efficiency, support growth initiatives and maintain safe, reliable service to customers.” The changes include: (1) focusing company resources on core business functions, consolidating and improving efficiency; and (2); implementing technology and process improvements across the organization. “Employee teams from across our organization have been evaluating all aspects of our existing business structure and work processes over the past few months,” said NGT&S President Christopher Helms. Of the job cuts, Helms said eligible employees will be offered a severance package and outplacement assistance, while certain employee groups will be eligible for voluntary severance. Combined, the NGT&S companies operate about 15,000 miles of interstate gas pipeline and 37 underground gas storage fields, delivering more than 1 Tcf of gas per year.

The Alaska Natural Resources Commission reversed course last week and granted ExxonMobil Corp. and its partners permission to begin drilling operations on two of the 31 contested leases in the Point Thomson Unit (PTU) of the North Slope.

The Alaska Natural Resources Commission reversed course Tuesday and granted ExxonMobil Corp. and its partners permission to begin drilling operations on two of the 31 contested leases in the Point Thomson Unit (PTU) of the North Slope.

Keeping with the flip-flop trend of the week, a large majority of natural gas cash points on Wednesday reversed course from Tuesday and recorded gains of up to a half dollar. While the East, West Coast and onshore Gulf of Mexico area posted gains across the board, the Midcontinent saw a few declines mixed in with widespread gains. The Rockies had basically equal gains and losses.