Offer

FERC yesterday approved a contested settlement in whichTennessee Gas Pipeline agreed to offer a discounted transportationto its shippers using the Perryville, LA, hub. This action isintended to further the development of Perryville as a marketcenter.

Boosted by what may be the most bullish weather forecast to hitthe industry in years, natural gas futures spiked dramatically inmultiple buying surges last week as traders pressed the envelope oftheir long exposures.

Northern Natural Gas has had three or more chances to justifyits proposal to offer limited firm throughput (LFT) service on itssystem, but it has struck out every time, industrial anddistributor shippers contend. They have asked FERC to either castaside the pipeline’s proposal for the new service or order radicalchanges to assuage their concerns.

Central Hudson Energy Services, with a long-term strategy tooffer a full range of energy supply alternatives, moved toward thatgoal with the purchase this week of Griffith Consumers Co., aheating oil provider with 43,000 retail customers and a significantmarket share in the Washington, D.C. area.

Northern Natural Gas has had three or more chances to justifyits proposal to offer limited firm throughput (LFT) service on itssystem, but it has struck out every time, industrial anddistributor shippers contend. They have asked FERC to either castaside the pipeline’s proposal for the new service or order radicalchanges to assuage their concerns.

Buoyed by strength in summer 2001 pricing, the natural gasfutures market rumbled higher yesterday afternoon, retracing lossesincurred earlier in the session. The August contract finished 2.9cents stronger at $4.257 after notching a $4.14 low earlier in theday. Estimated volume was light, with only 50,870 contractschanging hands.

Seven key electric utilities and marketers proposed five”consensus recommendations” aimed at helping the House CommerceCommittee move comprehensive restructuring legislation forwardduring this Congress.

Nevada Energy Inc. signed an offer to purchase from ConsolidatedBeacon Resources Ltd. two separate onshore exploration agreementscovering a combined total area of about 82,000 net hectaresnorthwest of Truro, Nova Scotia. Nevada will have a 75% workinginterest in 27,970 gross hectares and a 100% working interest in60,936 gross hectares and will be the operator. The agreementsrequire the operator to expend capital to fulfil the earningrequirements under the terms of the work programs as required bythe Nova Scotia Petroleum Directorate. Significant offshore gastests have been documented in the 5 MMcf/d range with establishedoil and gas production of 4 MMBoe realized at the onshore StoneyCreek Field within the same depositional basin about 78 milesnorthwest of the lands.

The Chicago Mercantile Exchange announced Thursday it has filedfor regulatory approval to offer exchange-traded, heating degreeday (HDD) and cooling degree day (CDD) futures and optionscontracts. The CME said these indexes will help companies manageweather-related financial risks. A start date will be set afterCommodity Futures Trading Commission (CFTC) approval.