Fixed

Dominion will receive $424.4 million in cash for a fixed-term overriding royalty interest in more than 2,900 producing natural gas wells across the United States under a volumetric production payment (VPP) with UBS Investment Bank that was announced Friday.

Construction of Williams’ Canyon Station — a fixed-leg platform in 300 feet of water in East Main Pass Block 261 — has been completed and is ready to receive up to 500 MMcf/d from 10 subsea wells 55 miles out in the deepwater Camden Hills, Kings Peak and Aconcagua fields. The Gulf of Mexico platform was completed on a fast, 18-month track. Deliveries are expected to begin in late September when feeder lines are connected, reaching 300 MMcf/d by the end of October and full capacity by the end of the year.

AEC said it has locked in fixed prices for the first nine months of 2002 on 600 MMcf/d of its gas production, or about 30% of its forecasted gas sales. In Canada, 370 MMcf/d was locked in at an average AECO equivalent price of C$3.80/Mcf, and in the U.S. Rockies, 230 MMcf/d was sold forward at an average Opal equivalent price of US$2.61/Mcf.

FERC approved Northern Border Pipeline Co.’s rate settlement,which converts the pipeline’s rate design to straight-fixedvariable from cost of service and which imposes a moratorium onrate changes until Nov. 1, 2005.

FERC approved Northern Border Pipeline Co.’s rate settlement,which converts the pipeline’s rate design to straight-fixedvariable from cost of service and which imposes a moratorium onrate changes until Nov. 1, 2005.

Calpine Corp. is planning to sell 400 MW on a fixed-price basisfor 30 months to Pacific Gas and Electric Co. in the firstbilateral electricity deal for a California utility sinceregulators agreed to allow such transactions in the wake of thesummer’s wholesale price and supply problems.

Calpine Corp. is planning to sell 400 MW on a fixed-price basisfor 30 months to Pacific Gas and Electric Co. in the firstbilateral electricity deal for a California utility sinceregulators agreed to allow such transactions in the wake of thesummer’s wholesale price and supply problems.

Kinder Morgan says an open season for an expansion of TrailblazerPipeline has signed up 300 MMcf/d of fixed rate contracts for aminimum term of 10 years. The company is targeting the fourth quarterof 2002 for completion of the $54 million project. The proposedexpansion of Trailblazer’s 436-mile pipeline would start in Rockport,CO, at a multi-pipeline connection, and end in Gage County,NE. Trailblazer plans to install two new compressor stations, addadditional horsepower at compressor station 602 and perhaps constructsome 36-inch loop. The open season “generated a very strongresponse,” said Richard D. Kinder, chairman of Kinder Morgan EnergyPartners L.P. The company dropped an earlier plan to include anextension to its pipeline system in the open season when it appearedColorado Interstate Gas would have an expansion of its competingMedicine Bow lateral completed before a new Trailblazer line could beconstructed (see Daily GPI, Aug. 8).