Denied

FERC last Thursday denied a request by the South Coast Air Quality Management District (SCAQMD) in California for a stay of the North Baja Pipeline expansion that the federal regulators authorized last October. The expansion provides the ability to flow gas in both directions on the pipeline linking Sempra Energy’s Costa Azul liquefied natural gas (LNG) terminal to Mexico, California and Arizona markets.

FERC Thursday denied a request by the South Coast Air Quality Management District (SCAQMD) in California for a stay of the North Baja Pipeline expansion that the federal regulators authorized last October. The expansion provides the ability to flow gas in both directions on the pipeline linking Sempra Energy’s Costa Azul liquefied natural gas (LNG) terminal to Mexico, California and Arizona markets.

The Massachusetts Department of Environmental Protection (DEP) has denied a request by Weaver’s Cove Energy to dredge the Taunton River to a depth to accommodate liquefied natural gas (LNG) tankers. Two rulings, one from the DEP’s Bureau of Resources Protection and another from the Wetlands and Waterways Program, reported that Weaver’s Cove submitted information and statements that were inconsistent with the U.S. Coast Guard’s findings that the Taunton River would not be suitable for LNG tanker traffic, according to the Providence (RI) Journal (see NGI, Dec. 17, 2007). Despite the rejection, Weaver’s Cove spokesman Jim Grasso last week said the company remains “fully committed” to building the LNG terminal that is proposed for Fall River, MA. He noted Weaver’s Cove, which is sponsored by Amerada Hess Corp. and an affiliate of Poten & Partners, will appeal the DEP decision. The Weaver’s Cove project, which FERC approved in mid-2005, has been the target of fierce opposition by local, state and federal officials, who are adamant against building LNG infrastructure in their backyard, although they admit more natural gas supply is needed for the region (see NGI, July 4, 2005). If built, ithe proposed terminal ould provide 800 MMcf/d of peak sendout capacity, 400 MMcf/d of baseload supply and 200,000 metric tons of LNG storage.

The Massachusetts Department of Environmental Protection (DEP) last week denied a request by Weaver’s Cove Energy to dredge the Taunton River to a depth to accommodate liquefied natural gas (LNG) tankers.

FERC last Thursday denied a request for a stay of its November 2007 order approving Transwestern Pipeline’s proposal to extend its pipeline system 260 miles from its mainline in Yavapai County, AZ, to delivery points in the growing Phoenix market (see NGI, Nov. 19, 2007).

FERC Thursday denied a request for a stay of its November 2007 order approving Transwestern Pipeline’s proposal to extend its pipeline system 260 miles from its mainline in Yavapai County, AZ, to delivery points in the growing Phoenix market (see Daily GPI, Nov. 19, 2007).

In a decision that approved and denied parts of two settlements with a six-year history, the California Public Utilities Commission (CPUC) last Thursday issued a series of changes for the natural gas utility operations in the southern half of the state. The most significant is the merger of gas-buying operations by Sempra Energy’s two utilities — Southern California Gas Co. (SoCalGas) and San Diego Gas and Electric Co. (SDG&E).

FERC Thursday denied motions filed by Amaranth Advisors LLC and other respondents seeking a stay of enforcement proceedings at the agency pending legal review of Federal Energy Regulatory Commission jurisdiction in the matter.

A federal court judge in New York last Thursday denied a plea by failed hedge fund Amaranth Advisors LLC to bar FERC from proceeding with an enforcement action against it until a parallel complaint brought by the Commodity Futures Trading Commission (CFTC) is resolved, although he said he believed it would be “prudent” for FERC to defer to the CFTC case. The court left the critical issue of whether FERC has jurisdiction in futures markets unsettled.