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Oklahoma Natural Gas (ONG) is digesting the Oklahoma CorporationCommission’s (OCC) recently released upstream unbundling order andfinding at least a few things it does not like. “Generally, basedon what we’ve seen in the order thus far, there is concern on thepart of management that the order as it exists now could curtailthe ability of our affiliate ONEOK Gas Transportation Co. (OGT) tocompete effectively in the marketplace,” said spokesman Don Sherry.”Our management’s considering where we go from here. Presumably theorder was described as an interim order. Presumably, there may beadditional options available to us at the Oklahoma CorporationCommission. Presumably there are legal options as well, but none ofthat has been decided at this moment.”

The Oklahoma Corporation Commission at press time Friday was toissue its rule for upstream unbundling of the Oklahoma Natural Gas(ONG) system. The unbundling plan calls for ONG to remain aregulated utility providing distribution service. However, itsexisting services and assets upstream of the citygate – gas supply,gathering, storage, and transportation – would be separated andbrought under a new company, ONEOK Gas Transmission (OGT). Inaddition, ONG will seek upstream services through competitive bid.

The Senate Energy and Natural Resources Committee has approvedthe nomination of Bill Richardson, currently U.S. ambassador to theUnited Nations, to become the next secretary to the Department ofEnergy (DOE).

Republican members of the Senate Energy and Natural ResourcesCommittee Wednesday warned Energy Secretary nominee Bill Richardsonhis nomination could face an indefinite delay when it reaches theSenate floor unless the Clinton administration makes concessions onthe controversial issue of nuclear-waste storage. Democrat members,on the other hand, vowed to fight against any efforts to block thenomination.

Natural Gas futures tumbled late in the trading session Tuesday,breaking momentarily below major support at $1.945, before settlingat $1.951. The nearly 15-cent slide exhibited by the Augustcontract comes on the heels of a nearly 3-week decline, leavingmany traders wondering if Tuesday’s big move lower was the end ofthe downtrend or one just picking up speed. Estimated volume of106,004 contracts favored the later.

Natural gas futures looked poised to continue to trend lowerlast Friday amid abundant physical supply and having justreestablished the downtrend that began on April 8th. However,weather forecasts calling for the warmest temperatures of thesummer and solid “bargain buying” in the cash market was enough tolift August 3.3 cents to settle at $2.165.

If you thought a new pooling system on El Paso Natural Gas wouldbe approved in time for summer vacation, it looks like you may haveto sweat it out for another season. After months of hair pullingscrutiny and debate, FERC has decided to reject El Paso’s March 16filing for scheduling gas pooling transactions on its system andconvene yet another technical conference on the complex matter.

The Senate Committee on Energy and Natural Resources hasscheduled a hearing for July 22 to take up the nomination of BillRichardson, current U.S. ambassador to the United Nations, to behead of the Department of Energy.

Weak gas processing margins prompted Mitchell Energy &Development to cut its natural gas liquids (NGL) production by morethan 20% – roughly 10,000 barrels/d. “With the collapse in thecrude oil market, gas processing margins are pretty ugly rightnow,” said George P. Mitchell, CEO. “NGLs have tracked the slide incrude prices due to weak demand and higher imports. Strong gasprices are adding to the squeeze in processing margins since makingup the volume shrinkage that occurs when we extract the liquids isa cost. With NGL inventories in the U.S. running at 10-year highs,we decided to cut back where it makes economic sense.