Holidays

It appears the Guardian Pipeline project received what it wantedfor the holidays after all, even though it came a week or two late.The pipeline cleared one of the larger regulatory hurdles, as theFederal Energy Regulatory Commission (FERC) staff issued a FinalEnvironmental Impact Statement (EIS) on the project, deeming theconstruction and operation of the 149-mile natural gas pipelinefrom Joliet, IL, to Ixonia, WI, an acceptable environmental action.

Because its initial open season period of Oct. 5 through Dec. 5included the Thanksgiving holidays, Dominion is extending thedeadline to Dec. 19 for its previously announced GreenbrierPipeline project in order to continue to gauge customer interest.

ANR Pipeline slipped more than a few lumps of coal in GuardianPipeline’s stocking over the holidays’ in the form of a 250-pageprotest and motion for dismissal filed with FERC. The Coastalsubsidiary has a right to be angry at its new competitor. TheGuardian project will result in the decontracting of about 650MDth/d of ANR’s firm transportation capacity by Guardian shipperand affiliate Wisconsin Gas and the loss of $54 million in annualrevenue, according to ANR’s calculations.

Traders hoping for unsubscribed El Paso capacity to reduceprices at the Southern California Border will be sorelydisappointed because of last week’s announcement that an unnamedshipper signed for 1.2 Bcf/d. The southwestern pipeline said itrecontracted all of its available firm capacity for a minimum of$37.5 million in revenues for 2000. The amount reflects an increaseof 7% over the annual average revenues generated from the Dynegydeal over the past two years. Dynegy paid $70 million for 1.3Bcf/d.