Exceeding

Transwestern began allocating Tuesday at its SoCal Needlesdelivery point into California due to nominations exceedingcapacity. About 103,000 MMBtu/d of West of Thoreau capacity wasaffected, the pipeline said.

The “unbalanced state” of the natural gas market with demandexceeding supply has caused PaineWebber analyst Ronald Barone toraise his average gas price projections by 15 cents for this yearand 10 cents next year over previous predictions, and warn ofpossible severe price spikes throughout the balance of this year.

The “unbalanced state” of the natural gas market with demandexceeding supply has caused PaineWebber analyst Ronald Barone toraise his average gas price projections by 15 cents for this yearand 10 cents next year over previous predictions, and warn ofpossible severe price spikes throughout the balance of this year.

Due to nominations exceeding capacity, Transwestern wasallocating deliveries Wednesday to SoCal Gas at Needles, CA. About196,000 MMBtu/d in the West of Thoreau segment was affected,Transwestern said.

Due to nomination increases exceeding available capacity reducedby a lost engine at Station 315, Tennessee bumped flowingInterruptible services (IT-X, IT, AOT, PAT, Payback, EDS/ERS) andrestricted nominated services through Secondary (IT-X, IT, AOT,PAT, Payback, EDS/ERS, Secondary) for meters downstream of MLV 314on the 300 line effective 1700 for yesterday’s gas day.

Due to nominations exceeding capacity, Transwestern wasallocating capacity Monday on the San Juan Lateral, affecting 18points.

FERC has suspended Destin Pipeline Co. L.L.C.’sblanket-certificate authority for six months for grossly exceedingthe $19.5 million cost cap earmarked for construction of anoffshore lateral, and for dragging its feet in reporting the costoverrun to the Commission.

FERC has suspended Destin Pipeline Co. LLC’s blanket-certificateauthority for six months for grossly exceeding the $19.5 millioncost cap earmarked for construction of an offshore lateral and fordragging its feet in reporting the cost overrun to the Commission.

A new pipeline may be needed in Southern California to eliminateimpending gas supply and infrastructure constraints, which couldbecome critical in the next few years, according to participants ata one-day roundtable set up by the California Public UtilitiesCommission (CPUC) Tuesday in San Diego. Demand is expected to farexceed supply in the burgeoning southern end of California and onboth sides of the U.S.-Mexican border, where population, industrialand energy growth are surpassing expectations,