Cash Prices continued their upward rally Tuesday, skyrocketingin excess of 20 cents at most delivery points. Most sources agreeda vigorous buying spree fueled by market players coming into theweek short in anticipation of lower prices was largely to blame forthe continued spikes in most areas.
Excess
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Transportation Note
Due to excess supply levels threatening system integrity and aconstraint on storage injections, Sonat implemented an OperationalFlow Order Type 6 effective Saturday. The OFO carries tieredpenalties ranging up to $15/dth for shippers with positive dailyimbalances exceeding allocated volumes by 3% or 200 dekatherms. Forthe same reasons as above, Sonat began a production areapoint-specific OFO Type 5 for nine points on its 26-inch Main PassArea Line. A penalty of $15/dth is involved for affected shippersor poolers exceeding scheduled quantities by 4%. Finally, an OFOType 1 (force majeure notice) began Saturday in connection withSonat’s retirement of facilities at the Main Pass 127 platform,which involved shutting in the Main Pass 129 and Main Pass 129Redelivery points. The work, which originally had been scheduled tostart on Friday, was expected to last 24-48 hours.
June 1, 1998
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