Lending

Lending more credibility to the theory that the current natural gas futures market is range-bound, the December contract on Tuesday gained 26.5 cents to close at $7.755. The rebound followed Monday’s bearish action when the prompt month slipped 39.4 cents.

Lending new credibility to the idea that last Friday’s $9.91 high might have been a top, September natural gas futures on Wednesday — with influence from a very weak petroleum sector — put in its lowest settle in four days.

The names — “Fat Boy,” “Death Star” — may sound ominous, but the strategies they represent actually served to arbitrage the California market, lending it equilibrium and efficiency, according to an economist with the global consulting firm NERA (National Economic Research Associates) in a paper released earlier this month.

Calling for a rejection of four negotiated parking and lending (PAL) agreements between Koch Gateway and its affiliate Koch Energy Trading (KET), Dynegy and Amoco filed some suggestions May 5 on how FERC might fix the Order 497 problems that allowed the pipeline to allegedly engage in such affiliate preferences.

FERC has accepted and suspended subject to refund fournegotiated parking and lending (PAL) agreements between KochGateway Pipeline and its marketing affiliate, Koch Energy Trading.In addition, the Commission has scheduled a technical conference onthe matter to explore what it called “serious concerns” raised byprotesters about Koch’s dealings with its affiliate and use of itsnegotiated rate privileges. The Commission in August 1996 grantedKoch’s negotiated rate authority.

FERC has accepted and suspended subject to refund four negotiatedparking and lending (PAL) agreements between Koch Gateway Pipeline andits marketing affiliate, Koch Energy Trading (see Daily GPI, Feb. 18 andFeb. 25). In addition, the Commission has scheduled a technicalconference on the matter to explore what it called “serious concerns”raised by protesters about Koch’s dealings with its affiliate and useof its negotiated rate privileges. The Commission in August 1996granted Koch’s negotiated rate authority.

With the futures screen lending little to no direction to thecash market, weather took over as the dominant influence Tuesday.Existing and expected chilly temperatures caused gains between 4and 10 cents in the Gulf Coast and Midcontinent regions. Northeastpoints made the biggest moves of the day, with many jumping morethan 15 cents.