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Just when you thought the news about the controversial contractarrangement between El Paso Natural Gas and its marketing affiliateEl Paso Merchant Energy Co. had died down, California regulatorscome out with a request from left field asking FERC to rescind the$38.5 million contract transaction for 1.22 Bcf/d of firm capacityon the pipeline.

Just when you thought the news about El Paso Natural Gas’contract arrangement with marketing affiliate El Paso MerchantEnergy Co. had died down, California regulators came out yesterdaywith a request from left field asking FERC to rescind the $38.5million transaction for 1.22 Bcf/d of firm capacity on thepipeline.

Amid the “uncertainty” over its interconnection policy, FERCearlier this week clarified its procedures to give all types ofelectric generators, especially new market entrants, a “fair shake”at hooking up to the interstate transmission grid.

Nearly all markets ranged from flat to just over a dime higherin post-weekend trading Monday, with most increases on either sideof a nickel. The stronger rises tended to occur mainly at westernpoints, while most of the very mild softness was at Northeastcitygates.

Prices responded accordingly Tuesday as just about everythingturned bullish for the spot gas market – chilly to very coldweather almost everywhere, rising futures in three importantcategories (gas, heating oil and crude oil), and expectations of alarge withdrawal volume in this afternoon’s storage report.

Growth lies ahead for the North American gas industry as do anumber of risks and challenges, according to the just released”North American Natural Gas Trends 2000,” a joint report of ArthurAndersen and Cambridge Energy Research Associates (CERA).

Growth lies ahead for the North American gas industry as do anumber of risks and challenges, according to the just released”North American Natural Gas Trends 2000,” a joint report of ArthurAndersen and Cambridge Energy Research Associates (CERA).

Whether it was too much holiday turkey or possibly just a postY2K letdown, the natural gas futures market began the year insomewhat of a funk last week as traders showed an unwillingness topush prices very much on either side of unchanged.

TransCanada CEO Doug Baldwin let investors know last week thatthis year is just the beginning of the cost-cutting and assetshuffling at the company. He predicted assets sales would reach $3billion (out of a total of $26 billion) by the end of 2001,including what already has been put on the block this year.