Mississippi

Tennessee Gas Pipeline is holding an open season through May 31to solicit interest in its Mississippi 500 Line Expansion Project.Tennessee expects the expansion to involve about 700,000 Dth/d offirm service starting June 1, 2001.

Petal Gas Storage L.L.C. has altered its proposal to beef up thedeliverability capacity of its storage facilities in Mississippi ina way that will benefit affiliates, such as Tennessee Gas Pipeline,at the expense of non-affiliates, say Amoco Production and AmocoEnergy Trading. Both companies urged FERC to reject it.

The Federal Energy Regulatory Commission has awarded Petal GasStorage LLC a certificate to increase the gas total storagecapacity of its two caverns in Mississippi by 5.4 Bcf and workinggas capacity by 4.8 Bcf.

Mississippi River Transmission (MRT) and Columbia Gas SystemInc. got very high marks for being responsive to their customers,according to the results of the latest pipelinecustomer-satisfaction study released last week by Mastio & Co.

Mississippi River Transmission (MRT) and Columbia Gas SystemInc. got very high marks for being responsive to their customers,according to the results of the latest pipeline customersatisfaction study released by Mastio & Co.

Sonat will be installing facilities today for tie-in of theSandy Hook Line to its system on the Franklinton-Gwinville lines inMississippi, which will require the shut-in of a total of 19 metersin the Hub, Sandy Hook and Dexter fields. The work is expected totake one day but may be extended if problems are encountered. Sonatalso reported beginning maintenance at the Muldon (MS) StorageField that will continue through Oct. 2. The pipeline declared aforce majeure in connection with the project but is not surewhether injection/withdrawal restrictions will be necessary for CSScustomers.

Coho Energy Inc., a Dallas-based independent oil and gasproducer focused on exploitation of underdeveloped oil propertiesin Oklahoma and Mississippi, announced it has filed a petition forChapter 11 bankruptcy protection in Dallas’ Federal BankruptcyCourt. The decision to seek protection was taken by Coho andcertain subsidiaries because the resolution of a restructuringcannot be completed without the protection and assistance of thebankruptcy court, the company said. Timing of the bankruptcy filingwas imposed by several factors including the repayment accelerationof the Company’s $240 million debt by its bank creditors lastThursday (See Daily GPI, Aug. 20), the inability of the banks andthe bondholders (the two large creditor groups) to reach asatisfactory agreement with each other, and the potential for oneof the bondholder’s being granted a summary judgment in its lawsuitagainst Coho for full payment of principal and past due interest.Coho said it is continuing to discuss a solution to its capitalneeds with the banks, the bondholders and other potentialinvestors. The company expects to file a plan of reorganizationwith the bankruptcy court in the near future.

FERC last week gave Petal Gas Storage the go-ahead to double thecertificated capacity of its storage facilities in Mississippi to10.4 Bcf. Petal Gas would accomplish this by drilling, leaching anddeveloping a second underground salt dome storage cavern identicalto its existing cavern. The proposed storage cavern would have thesame certificated capacity as the existing cavern (5.2 Bcf), andboth would have a combined actual working gas capacity of 5.8 Bcf.

Caught in the midst of heated criticism of FERC’s proposedauction mechanism, Mississippi River Transmission (MRT) isdefending its proposed new auction procedures from attack bymarketers and producers.