Extension

El Paso subsidiary Colorado Interstate Gas is dusting off its Ruby Pipeline project in light of the scramble to increase deliveries to the California market. The project, which originally was announced in 1998 to serve northern Nevada, will be extended to Reno, NV, and into California, the pipeline said in an open season announcement last week.

El Paso subsidiary Colorado Interstate Gas is dusting off its Ruby Pipeline project in light of the scramble to increase deliveries to the California market. The project, which originally was announced in 1998 to serve northern Nevada, will be extended to Reno, NV, and into California, the pipeline said in an open season announcement.

Natural Gas Pipeline Company of America (NGPL) is proposing an expansion and extension of its existing system in northeastern Illinois to serve a planned new electric power plant, which will be constructed to meet a spring, 2003 in-service date. An open season started April 13 and will close at 5 p.m. CT on Friday, April 27. Natural proposes to expand the capacity of its Volo lateral (starting at Compressor Station 113), North Chicago, and Moraine Lateral by 75,000 Dth/d with the addition of compression. Also, a new eleven-mile, 20-inch lateral with a design capacity of 75,000 Dth/d would be built east from the Moraine Lateral to the site of a planned 550 MW electric power plant in the city of Waukegan, IL. Shippers must return an executed precedent agreement for a minimum of 16 years. Natural has proposed a negotiated rate including a fixed reservation charge of$4.5626 per Dth of contract maximum daily quantity, a maximum commodity rate for an Iowa-Illinois receipt to a Market zone delivery, which is currently $0.0021 per Dth in the peak period and $0.0005 during the off-peak period, plus a tariff fuel rate for an Iowa-Illinois to Market Zone delivery (currently 1.81%). For further information contact David E. Oros at (630) 691-3196.

One of the first casualties in the late 1990s energy downturnwas the closure of Texas A&M Engineering and Extension ServiceDrilling Rig School near Abilene, TX. As the industry struggles tobuild up exploration and production activities, it also isstruggling with finding enough workers — and Texas RailroadCommissioner Charles Matthews wants the school to open its doorsonce again.

Operating under a two-week extension of emergency orders to keeppower and gas supplies flowing, courtesy of the new Bushadministration, California government leaders last week conductedthe state’s first-ever power auction for long-term contracts, andcontinued to work on new legislation to revitalize its crumblingpower structure.

Powder River Basin gas producers may be about to get a moredirect route to Midwest markets. Northern Border Pipeline hasreleased plans to build a new 325-mile greenfield pipeline fromMcCabe, MT, to Gillette, WY, to tap the rapidly growing productionin the Powder River, which is estimated to hold between 10 and 30Tcf of gas.

Powder River Basin gas producers may be about to get a moredirect route to Midwest markets. Northern Border Pipeline hasreleased plans to build a new 325-mile greenfield pipeline fromMcCabe, MT, to Gillette, WY, to tap the rapidly growing productionin the Powder River, which is estimated to hold between 10 and 30Tcf of gas.

Independent power marketers are opposed to any extension of theCalifornia Independent System Operator’s (Cal-ISO) purchase pricecap authority, saying it would give the Cal-ISO “unfettered”control over wholesale electric market prices in the state. Butinvestor-owned utility, Southern California Edison, and theCalifornia Power Exchange (Cal-PX) see an upside to the Cal-ISO’srequest.

Anadarko Petroleum said a field extension well in the BossierSand Play in East Texas is flowing at 51.5 MMcf/d at 4,500 psiflowing casing pressure. Blair A-3 well began flowing April 28. Thecompany’s production from the Bossier Play has increased to morethan 195 MMcf/d (gross). Anadarko is making modifications to itsDew Gathering System to accommodate the production increase. Thewell in the Dew Field,Freestone County, reached total depth of12,885 feet on April 13. The company has an 82.5% working interestin the well with El Paso Production owning the remaining 17.5%.Anadarko has 21 rigs in operation throughout its East Texas BossierPlay.