Issued

Pacific Gas & Electric issued a low-inventory Stage 1 OFOfor today. It carries penalties of $1/dth for negative dailyimbalances exceeding a relatively stringent 2% tolerance range.

A veteran natural gas reserve and production expert has issued abearish warning to natural gas market observers: 1998 total reserveadditions could jump as much as 3 Tcf from 1997’s figure to between22 and 23 Tcf. That would be well above the range of 14.9 to 20.2Tcf over the last nine years. With 1998 production estimated atabout 19 Tcf the forecast adds up to reserve additions exceedingproduction by 116% to 121%.

A veteran natural gas reserve and production expert has issued abearish warning to natural gas market observers: 1998 total reserveadditions could jump as much as 3 Tcf from 1997’s figure to between22 and 23 Tcf. That would be well above the range of 14.9 to 20.2Tcf over the last nine years. With 1998 production estimated atabout 19 Tcf the forecast adds up to reserve additions exceedingproduction by 116% to 121%.

The Federal Energy Regulatory Commission yesterday issued apreliminary determination to a pipeline that could very well giveSouthern California Gas (SoCalGas) a run for its money in theCalifornia natural gas market.

Citing high market-area demand, Florida Gas Transmission issuedan Overage Alert Day notice Tuesday for the segment east of Station12 (Santa Rosa County, FL). Daily negative imbalances exceeding atolerance of 5% are subject to penalty. The pipeline will evaluatesystem conditions again this morning before deciding whether toextend the OFO.

Over the weekend Pacific Gas & Electric issued ahigh-inventory OFO with 10% tolerance on positive daily imbalancesfor Sunday but did not continue the OFO Monday.

The U.S. portion of TriState Pipeline got some much-needed goodnews last week when FERC issued a preliminary determination on thenon-environmental aspects of the project after resolving a stickyjurisdictional issue. But whether it will be enough to kick-startthe troubled project, which is lagging far behind the competingVector Pipeline, seemed doubtful.

The troubled TriState Pipeline got some much-needed good newsyesterday when FERC issued a preliminary determination on thenon-environmental aspects of the project.

After warning of its possibility Tuesday, Florida GasTransmission issued an Overage Alert Day notice Wednesday for themarket area east of Station 12 (Santa Rosa County in the FloridaPanhandle). The notice carries a 6% tolerance for daily negativeimbalances. FGT will re-evaluate conditions this morning beforedeciding whether to extend the notice.