Facility

Sonat lifted Saturday an OFO Type 1 and force majeure associatedwith a shut-in test of its Bear Creek (LA) Storage Facility. BearCreek’s injection/withdrawal capacity was restored to 100%.

Questar canceled Thursday the shut-in of its Clay Basin storagefacility that had been scheduled for Oct. 24-25. The maintenancework will be rescheduled next spring.

Frederickson Power acquired a partially built gas-fired 249 MWelectricity generating facility located in Fredrickson, WA from theBonneville Power Administration for $25.1 million. FredericksonPower is a partnership between Westcoast power and EPCOR PowerDevelopment Corporation. “Completion of the Frederickson Powerproject will provide an alternative to existing hydro-electricpower facilities that can not meet increased demand,” saidWestcoast Power President Jeff Meyers. “It will produce energysafely and efficiently with a preferred fuel source which supportsefforts to improve local air quality and addresses climate changeconcerns.” The plant is expected to cost $160 million and has acomercial operation date set for the middle of 2002.

Questar experienced a mechanical failure Thursday in Unit #7 atits Clay Basin storage facility. Barring unexpected complications,repairs should be complete by today and the unit available forservice again on Tuesday’s gas day, the pipeline said. Injectioncapacity has been reduced to 235,000 Dth/d during the outage.Allocation of injection capacity was expected to occur each day,with the impact determined by customer nominations. However, thereis no impact on withdrawal nominations, Questar said.

Egan Hub Partners, a subsidiary of NiSource, filed a request atFERC recently to expand the operating capacity of its existingstorage facility in Acadia Parish, LA from 15.5 Bcf to 21 Bcf. Thecompany wants a FERC decision by Sept. 1 so that some or all of theexpansion can be online during the 2000-2001 heating season. Egansaid the expansion is necessary because of the large number ofrequests from customers for additional storage service. It expectsthat the expanded capacity will be fully subscribed and says it canprovide the identity of customers with which it is discussingincremental service, if the Commission requests such information.The company’s two existing salt dome caverns will be enlarged from7.75 Bcf to 10.5 Bcf and compression will be added, boostingdeliverability from 750 MMcf/d to 800 MMcf/d.

Egan Hub Partners, a subsidiary of NiSource, filed a request atFERC recently to expand the operating capacity of its existingstorage facility in Acadia Parish, LA from 15.5 Bcf to 21 Bcf. Thecompany wants a FERC decision by Sept. 1 so that some or all of theexpansion can be online during the 2000-2001 heating season. Egansaid the expansion is necessary because of the large number ofrequests from customers for additional storage service. It expectsthat the expanded capacity will be fully subscribed and says it canprovide the identity of customers with which it is discussingincremental service, if the Commission requests such information.The company’s two existing salt dome caverns will be enlarged from7.75 Bcf to 10.5 Bcf and compression will be added, boostingdeliverability from 750 MMcf/d to 800 MMcf/d.

Coho Energy is exiting bankruptcy protection with new seniormanagement and a new bank facility. Coho and five of its affiliatesfiled for Chapter 11 Aug. 23. At the time, Coho listed totalliabilities of $425 million. Under the reorganization plan, Coho’sthree largest institutional bondholders converted their debt into90% of the equity of the reorganized company. These bondholdersalso provided the majority of the $72 million of subordinatednotes, as provided under the reorganization plan. The bondholdersare Appaloosa Management, Oaktree Capital Management and PPMAmerica.

The groundhog must have chewed a hole into a CNG storagefacility, judging from the massive withdrawal that the American GasAssociation reported last week. At 242 Bcf, the withdrawal ranks asthe third largest since AGA started its survey six years ago. Itwas the largest for the last week in January.

Ingleside Cogeneration, L.P., a joint venture subsidiary ofOccidental Petroleum Corp. and Conoco, has completed a $200million, 440 MW cogeneration facility in South Texas. The plant hasstarted providing power for the adjacent OxyChem and DuPontchemical facilities, officials for the joint venture saidyesterday. In addition, enough excess electrical power will be soldinto the newly deregulated Texas grid for 75,000 homes andbusinesses.