Inventory

For the first time in July Pacific Gas & Electric entered aweekend without having a high-inventory OFO in place. One that hadbeen declared for Friday (see Daily GPI, July 23) was not extended.However, Southern California Gas did implement an OFO-likeOvernominations Day for Saturday.

Pacific Gas & Electric issued a systemwide high-inventoryOFO effective today. The order carries penalties of $1/Dth forpositive imbalances exceeding a tolerance of 11%. The utilityprojected that high linepack (200 MMcf greater than target) wouldlast through Sunday.

Pacific Gas & Electric extended a high-inventory Stage 1 OFObegun Friday (see Daily GPI, July 9)through Saturday but loosened the tolerance for positive dailyimbalances from 5% to 21%. Above-target linepack was projectedthrough today. PG&E’s neighbor to the south, Southern CaliforniaGas, declared a similar Overnominations Day for Saturday but had a 10%imbalance tolerance.

After beginning last week in the middle of a three-dayhigh-inventory OFO (see Daily GPI, June 22), Pacific Gas &Electric declared another one for Saturday after previously sayingit expected system linepack to remain well above the utility’starget through the weekend. The new order carried a positiveimbalance tolerance of 11% and penalties of $1/dth fornon-compliance.

Pacific Gas & Electric issued a low-inventory Stage 1 OFOfor today carrying penalties of $1/dth for negative imbalancesexceeding 5% of scheduled volumes.

In a move to cut debt and costs by reducing its propertyinventory, Dallas-based Pioneer Natural Resources agreed to sellcertain oil and gas properties to Costilla Energy Inc. for $410million. The transaction will be effective Oct. 1 and is expectedto close by year-end. Despite the recent volatility in oil and gasprices, the company said the price falls within its expectations.

Pacific Gas & Electric extended a low-inventory Stage 1 OFO(see Daily GPI, Sept. 1) through today. Penalties were unchanged,but the negative imbalance tolerance was tightened to 5%.