Endorse

The prospect of offshore natural gas drilling could gain traction in a few coastal states. In South Carolina lawmakers are expected to endorse next week a pro-exploratory drilling recommendation of a legislative panel; in Florida drilling advocates are girding for battle next year, having failed to defeat a drilling moratorium earlier this year; and a Virginia lawmaker is keeping the pressure on for a 2011 lease sale.

At its annual statewide meeting last Friday, the Oregon AFL-CIO voted to endorse the proposed NorthernStar Natural Gas Bradwood Landing liquefied natural gas (LNG) receiving terminal along the Oregon side of the Columbia River near Astoria. The project’s backers called the endorsement an “overwhelming” show of support for their project, which is one of several now active in the state.

Shareholders of Columbia Energy Group Friday duplicated theperformance of NiSource Inc. shareholders a day earlier,overwhelmingly approving the merger of the two companies, and bringingit a step closer to reality. (See Daily GPI, June 2)

Electric power and business interests throughout California arehailing the overwhelming voter rejection of Prop 9 (72%-28%), theelectric reform initiative that would have crippled California’scomplex pioneering effort at creating a competitive electricitymarket. Similar reactions were echoed on the East Coast whereQuestion 4 in Massachusetts was passed by voters, sustaining itsongoing electricity competition.

A major LDC group and a pipeline group urged FERC yesterday tofavorably consider a proposal that would clear the way for gaspipelines and their customers to negotiate the heretofore untouchedarea of terms and conditions of service. The Commission has limitedits approval so far tonegotiation of rates.