Further

Large commercial and industrial customers in Southern Californiashould experience further rate relief on their natural gas billsnext year, but the declines will be modest, according to aCalifornia Public Utilities Commission staff manager in charge oftwo pending rate cases for Southern California Gas Co., whichcontinues to keep a wary eye on new proposed interstate pipelinesthat would like to hook up directly to some of its largestcustomers.

Large commercial and industrial customers in Southern Californiashould experience further rate relief on their natural gas billsnext year, but the declines will be modest, according to aCalifornia Public Utilities Commission staff manager following twopending rate cases for Southern California Gas Co., which continuesto keep a wary eye on new proposed interstate pipelines that wouldlike to hook up directly to some of its largest customers.

Effective May 1 until further notice, Tennessee will not acceptreceipt nominations at 20 meters on the Donna Line in South Texasor at 10 meters on the Kinder-Natchitoches (KN) Line in westernLouisiana as it prepares both lines to make them “piggable.” TheDonna and KN outages are scheduled to last until June 9 and June 1respectively. Delivery nominations will be allowed at theProvencal, Pitkin, Grant and J.R. Franks #1 meters on the KN Line.

Effective May 1 until further notice, Tennessee will not acceptreceipt nominations at 20 meters on the Donna Line in South Texasor at 10 meters on the Kinder-Natchitoches (KN) Line in westernLouisiana as it prepares both lines to make them “piggable.” TheDonna and KN outages are scheduled to last until June 9 and June 1respectively. Delivery nominations will be allowed at theProvencal, Pitkin, Grant and J.R. Franks #1 meters on the KN Line.

All the ingredients were right for the futures market to spirallower yesterday-a softer cash market, continued bearish weatherforecasts, and an abundance of ready-to-expire March $1.65 and$1.70 put options. But for some reason, all of those factors werenot enough to inspire a sustained round of selling, leaving theMarch contract to chop to either side of unchanged before finishingwith a 0.6-cent gain to $1.71.

While many expected a bearish storage report (78 Bcf ofwithdrawals) to result in further declines in the March futurescontract on Thursday, the opposite took place. Borrowing a phrasefrom Federal Reserve Chairman Alan Greenspan, one trader said”irrational exuberance” took over at the New York MercantileExchange yesterday, which pushed the March contract up 6.4 cents tosettle at $1.829.

CNG Transmission Corp. last week called on FERC to dismiss thepending application of potential competitor Independence Pipeline,claiming that the 400-mile project was based on out-dated andfaulty demand projections for the Northeast gas market and lackedbinding precedent agreements. In addition, it said Independence hasdrawn “substantial opposition” from affected landowners andenvironmental groups.

CNG Transmission Corp. last week called on FERC to dismiss thepending application of potential competitor Independence Pipeline,claiming that the 400-mile project was based on out-dated andfaulty demand projections for the Northeast gas market and lackedbinding precedent agreements. In addition, it said Independence hasdrawn “substantial opposition” from affected landowners andenvironmental groups.

Two recently announced deals provide further proof thatindependent producers are finding it tough going in the current lowcommodity price environment. Houston-based independentRutherford-Moran Oil Corp. struck a deal with Chevron to allow itto continue activities in the Gulf of Thailand, and EEX announcedit is selling $150 million of securities to fund its deep-waterdevelopment program.