Federal

Daniel M. Adamson, director of the office of energy projects atthe Federal Energy Regulatory Commission, sent a letter to ColumbiaEnergy’s David Pentzein this week requesting a status report on the$650 million Millennium Pipeline project in light of all the recentcriticism from New York regulators and the impact of theColumbia-NiSource merger. The 442-mile project would bring about714 MMcf/d of gas from Canada under Lake Erie to the New Yorkmetropolitan area.

The Federal Energy Regulatory Commission last week awardedNorthern Border Pipeline a certificate to build its Project 2000extension into northern Indiana, which would provide the state’scustomers access to Canadian gas supplies for the first time.

The Federal Energy Regulatory Commission last week awarded PetalGas Storage L.L.C. a certificate to increase the total gas storagecapacity of its two caverns in Mississippi by 5.4 Bcf and workinggas capacity by 4.8 Bcf.

The Federal Energy Regulatory Commission has awarded Petal GasStorage LLC a certificate to increase the gas total storagecapacity of its two caverns in Mississippi by 5.4 Bcf and workinggas capacity by 4.8 Bcf.

Williams Gas Pipeline-Central received a certificate from theFederal Energy Regulatory Commission to provide up to 55,000 Dth/dof additional firm gas transportation service to the EmpireDistrict Electric Company State Line Plant in Jasper County, MO.Williams plans to uprate its Blackwell-Cotton Valley pipeline inWashington County, OK, from 500 psi of maximum allowable pressureto 690 psi. It also will lay 37 miles of 20-inch pipe in Labetteand Cherokee Counties, KS, to extend to its Southern Trunk loopline. And it will add measurement facilities at the Empire Plant.Empire is installing an additional gas turbine, two heat recoverygenerators and a steam turbine generator to create a 500-plus MWcombined-cycle plant. Williams currently provides up to 28,800Dth/d of gas to the plant.

The Federal Energy Regulatory Commission yesterday awardedNorthern Border Pipeline a certificate to build its Project 2000extension into northern Indiana, which would provide customersthere access to less expensive Canadian gas supplies for the firsttime.

The Federal Trade Commission (FTC) last week asked El PasoEnergy and the Coastal Corp. to pony up with more informationregarding their proposed merger. The companies confirmed therequest but wouldn’t say what the FTC is seeking. The commissionwould not comment, saying the case is ongoing. Analyst speculationwas that the FTC is looking at the companies combined power in theGulf of Mexico.

The Federal Trade Commission (FTC) has asked El Paso Energy andthe Coastal Corp. to pony up with more information regarding theirproposed merger. The companies confirmed the request but wouldn’tsay what the FTC is seeking. The commission would not comment,saying the case is ongoing.

Events over the past year at the Federal Energy RegulatoryCommission have cast a dark cloud over the fate of the $650 millionMillennium Pipeline project, but that cloud got a lot darker lastweek. NiSource’s announcement that it is buying Columbia EnergyGroup, Millennium’s lead sponsor, for $6 billion with $2.5 billionin debt assumption, may have all but killed the pipeline project.