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Last week was an “Excedrin headache” kind of week for KinderMorgan Inc. It began with the company trying to get a Coloradocourt to toss out a Justice Department complaint alleging thataffiliate Natural Gas Pipeline Co. of America (NGPL) failed toobtain the necessary air quality permits for a compressor stationit built in Colorado more than 20 years ago. The complaint, whichJustice brought on behalf of the Environmental Protection Agency,seeks the maximum statutory penalties from the company, which couldsoar into the millions.

Except for the Rockies and Pacific Northwest, fundamentalsremained kind of on the wimpy side in most markets Monday. However,going on the theory that a bird in the bush (weather forecast) isworth more than two or three in the hand (current conditions),traders sent prices higher by about a dime or more at most points.Although the screen provided a smidgen of support with a gain ofslightly over 6 cents, sources agreed that a new forecast for muchcolder temperatures than anything seen previously was the mainfactor in rising cash prices.

Calling it the first comprehensive grouped-utility privatizationcontract awarded by the Department of Defense (DOD), the U.S. ArmyMilitary District of Washington and Enron Federal Solutions Inc.announced a 10-year $24.8 million deal last week. The Enronsubsidiary will manage all of New York-based Fort Hamilton’sutility needs. The announcement was made at Fort McNair inWashington D.C.

Calling it the first comprehensive grouped-utility privatizationcontract awarded by the Department of Defense (DOD), the U.S. ArmyMilitary District of Washington and Enron Federal Solutions Inc.announced a 10-year $24.8 million deal yesterday. The Enronsubsidiary will manage all of New York-based Fort Hamilton’sutility needs. The announcement was made yesterday at Fort McNairin Washington D.C.

In the first of its kind for the hotel industry, PG&E EnergyServices has signed a five-year, $165 million deal with theprocurement arm of Marriott International to provide natural gas,electricity and various energy services to 130 properties inCalifornia. As other states open their energy markets, PG&Ehopes to do other deals with the huge Bethesda, MD-based hoteloperator, which has 1,800 properties worldwide.

The cash swing market kind of “muddled around” Tuesday,unimpressed by a small screen uptick or anything else for thatmatter, according to a Midcontinent trader. Nearly all points wereflat to barely a penny or two lower. The big drop of a nickel or soat Sumas likely was due to a three-day outage of Jackson Prairiestorage operations starting today, causing Northwest to get strictabout banking gas on the system, one source said.

Cash prices hinted Thursday that they’re not ready to settleinto the same kind of stagnation period that characterized much ofFebruary’s activity. Riding the momentum of a rising Henry Hubfutures contract, stronger crude oil futures (back over $13/bbl)and snowy weather in various regions, nearly all points roseanywhere from 2 cents to a dime with most increases in the vicinityof a nickel.

The Minerals Management Service (MMS) report’s conclusion that amandatory royalty in-kind (RIK) program for royalty collectionwould cost the federal government up to $374 million annually inlost revenues was “deeply flawed,” according to an industry-backedstudy of the agency’s analysis.

A House bill proposing a nationwide royalty in-kind (RIK) schemefor collecting royalties on oil and natural gas produced on federallands would result in a net revenue loss of $141 million to $367million to the federal government during the first 8 1/2 years ofits implementation.