Drafting

El Paso expanded a location-specific Strained Operation Condition (SOC) due to drafting-caused low linepack that it had declared Saturday to a systemwide SOC Sunday. The imbalance tolerance was set initially at 10%, El Paso said, but will be reduced “if conditions do not sufficiently improve.” System linepack had fallen below 7,100 MMcf “with continued takes in excess of scheduled deliveries. Additionally, the San Juan supply basin continues to experience underperformance issues related to the cold weather with an approximate shortfall of 400 MMcf at the present time [Sunday] and [El Paso] is beginning to see underperformance in the Permian supply basin as well. Performance caps have been placed and will continue to be placed on underperforming supplies.” Its Washington Ranch storage facility was on maximum withdrawal, the pipeline said. Interruptible Storage Service was suspended Sunday until further notice.

Sen. Edward J. Markey (D-MA) is drafting legislation to protect the polar bear from oil and natural gas development in the Chukchi Sea offshore Alaska, legislation that likely would require the U.S. Minerals Management Service (MMS) to postpone a lease sale scheduled for Feb. 6.

Sen. Edward J. Markey (D-MA) said Thursday he is drafting legislation to protect the polar bear from oil and natural gas development in the Chukchi Sea offshore Alaska, legislation that likely would require the U.S. Minerals Management Service (MMS) to postpone a lease sale scheduled for Feb. 6.

Citing customer drafting and receipt point shortfalls, Northwest said it “lost a notable volume from its Jackson Prairie storage account” during Wednesday’s gas day. It also pointed out that Questar’s Clay Basin storage facility is currently shut in and the forecast for the Pacific Northwest called for cooler temperatures into early this week. “In anticipation of the cooler weather and to ensure the preservation of its Jackson Prairie balancing account, Northwest is providing notice that it may declare customer-specific or system entitlements for overruns for receiving parties located north of the Kemmerer Compressor Station,” the pipeline said. “In addition, Northwest will not tolerate any shortfalls from receipt points south of Kemmerer. If necessary, Northwest will cut nominations in all cycles to match any underdeliveries by upstream interconnects.”

Sen. Carl Levin (D-MI) last Monday said he and several other senators are drafting legislation to be debated in the fall that would subject unregulated electronic energy trading platforms, such as Atlanta-based IntercontinentalExchange (ICE), to the oversight of the Commodity Futures Trading Commission (CFTC). The CFTC also announced that it will hold a September hearing to review its level of regulation in energy markets.

Sen. Carl Levin (D-MI) Monday said he and several other senators are drafting legislation to be debated in the fall that would subject all currently unregulated electronic energy trading platforms, such as Atlanta-based IntercontinentalExchange (ICE), to the oversight of the Commodity Futures Trading Commission (CFTC).

Kern River was in the unusual position Thursday of asking customers to refrain from drafting its system as low linepack conditions continued in all four segments. For much of this year it has been reporting high linepack. “It is imperative that operators only take their scheduled quantity,” the pipeline said. “In addition, if you have an imbalance that is owed to Kern River, please make arrangements to pay back this imbalance as soon as possible.”

Saying drafting continues on its south system and that the Washington Ranch Storage facility has been experiencing maximum withdrawals since Monday, El Paso declared a Strained Operating Condition (SOC) Thursday. Although the SOC is directed specifically at the Arizona Public Service utility and Panda Resources’ Gila River Power Plant, the pipeline urged all shippers to bring their supplies and demand into balance to minimize the SOC’s duration. The imbalance threshold for negative daily imbalances was set at 7%.

Westcoast, which had been encouraging drafting of excess linepack from its system with a daily imbalance tolerance range of zero pack and 20% draft, will revert to its normal 10%/10% range Friday.