Extended

Peoples Energy Production Co., the affiliate of Peoples Gas,extended a year-long buying binge Thursday, by obtaining 70% ofEnsign Operating Co.’s Arkoma basin assets for $15 million. Theproduction arm of Peoples Energy has now spent $65 million inpartnerships and acquisitions since the fall of 1998.

Pacific Gas & Electric extended a high-inventory Stage 1 OFObegun Friday (see Daily GPI, July 9)through Saturday but loosened the tolerance for positive dailyimbalances from 5% to 21%. Above-target linepack was projectedthrough today. PG&E’s neighbor to the south, Southern CaliforniaGas, declared a similar Overnominations Day for Saturday but had a 10%imbalance tolerance.

Northern Natural Gas extended a System Underrun Limitation orderfor all market-area zones through Monday. The SUL was initiatedTuesday to guard against excessive linepack (see Daily GPI, June 30).

Transco extended Thursday the open season for FT service on itsSundance Expansion Project, originally scheduled to end June 1,through June 18. Sundance will provide extra capacity from Station65 in Louisiana to Station 165 in Virginia and is proposed to beginservice by April 1,2002.

Costilla Energy Inc. of Midland, TX, is examining its optionsafter lenders extended until June 1 a $10.2 million mandatoryprincipal payment due a bank credit facility. Petrie Parkman &ampCo. was hired to weigh potential deals.

Citing continuing compressor repairs at Station 13, Northern BorderFriday extended a reduction of system throughput to 90% of summerdesign capacity (see Daily GPI, May 19)through Saturday and Sunday.

Costilla Energy Inc. of Midland, TX, is examining its optionsafter lenders extended until June 1 a $10.2 million mandatoryprincipal payment due a bank credit facility. Petrie Parkman &Co. was hired to weigh potential deals.

In response to a data request from CNG’s board, Columbia EnergyGroup extended its deadline to May 10 for the CNG board to respondto its unsolicited merger proposal. CNG asked for additionalinformation on a two-way collar mechanism in Columbia’s $6.7billion bid for the company (see NGI, April 26).

California regulators have given the green light to continueindefinitely the three-year-old incentive gas buying program atSouthern California Gas Co., dispensing at year-end 1998 with anannual review of the program, which has even drawn praise from theusually critical Office of Ratepayer Advocates (ORA) at theCalifornia Public Utilities Commission. The program reportedly hassaved millions of dollars for SoCalGas’ smallest customers who relyon the utility to buy their supplies.