Guarantees

Before leaving for the holidays Thursday, the Senate finally got around to confirming former Iowa regulator John Norris to FERC. The move all but guarantees that the Commission will not run into quorum problems in the New Year.

While there are no loan guarantees or other direct subsidies, Canada’s Arctic natural gas project is studded with extras spawned by political aspects of opening up a new supply region with a touchy population.

The first northern pipeline proposal to reach Canadian regulators includes an unintended reminder of who controls the Arctic natural gas agenda — producers rather than transporters.

The first northern pipeline proposal to reach Canadian regulators includes an unintended reminder of who controls the Arctic natural gas agenda — producers rather than transporters.

KN Energy’s Mark Kissel, director of account services, saidyesterday the major firm transportation deal signed between NaturalGas Pipeline Company of America and Aquila Energy earlier this weekhas a net present value for the pipeline of $31.16 million, which isguaranteed revenue and excludes revenue sharing above that level thatis based on several different pricing strategies. The contract covers150,000 MMBtu/d of firm capacity on NGPL’s Amarillo leg and 350,00MMBtu/d on NGPL’s Gulf leg for two years (see Daily GPI, Sept. 28).

The U.S. Senate has approved a bill including $500 million inloan guarantees for independent oil and gas producers and thepetroleum service industry. The loan guarantee program is part ofH.R. 1664, which is now on its way to a House/Senate conferencecommittee. The product of that committee will then be sent back toboth houses for ratification. The bill drew praise from theIndependent Petroleum Assoc. which called it a “tool that America’soil and gas producers will be able to use to help them recover fromthe recent devastating period of low oil prices.” The groupcredited Sen. Pete Dominici, R-NM for leading the initiative. Underthe program 85% of the loans of up to $10 million will be coveredby a government-backed repayment guarantee. The bill alsoestablishes a $1 billion loan program for the steel industry.