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Statoil Energy is bullish on gas prices this winter and over thelong haul, so bullish, in fact, it may begin long-term LNGimporting in the next few years, company officials said at a pressbriefing last week at the company’s U.S. headquarters inAlexandria, VA.

A number of interstate pipelines and pipeline customers lastweek indicated they would oppose any FERC proposed rule requiringpipes to formally notify affected landowners about constructionprojects prior to filing applications, saying that changes toexisting practices were unnecessary, could further snarl thecertification process and might even aggravate what are alreadytense pipeline-landowner relationships. In late September, FERCsuggested in a notice of technical conference that it was leaningtoward such an initiative in order to involve landowners earlier inthe certification process.

With a blatant clue like the screen’s Monday drop of just over15 cents, which no cash point came close to matching that day, nogas traders had to switch occupations to rocket scientist topredict swing prices would be softening further Tuesday. Except foressential flatness in the Rockies and at Canada’s intra-Alberta andSumas points, most of Tuesday’s declines were within the range of4-9 cents.

Customer satisfaction with gas pipeline transportation in NorthAmerica has shown a marginal 2% improvement over the past twoyears, with 30 pipelines achieving a higher ranking while almost anequal amount of pipelines (27) experienced a decline, according toa bi-annual survey released by Mastio &amp Co. last week.

As expected, there still is nearly complete disagreement amongOklahoma gatherers and producers over the fairness of current ratesand service treatment. Responses to a recent Oklahoma CorporationCommission (OCC) questionnaire reveal that nearly half of producerrespondents felt similarly situated producers on the same gatheringsystem received higher or lower prices than they received. Also,79% said this was unduly discriminatory.

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A constructive price move near the close of trading Tuesday anda well-bid over-the-counter market Wednesday morning had bullschamping at the bit early yesterday. But by afternoon, forecastscalling for a moderation of the cold weather gripping much of themiddle of the country had begun to filter through the futuresmarket which left prices to trickle lower. Both the December andJanuary contract slipped 4.6 cents, settling at $2.432 and $2.557respectively.

ARCO’s announcement last week that it will cut $500 million inexpenses and 900 jobs over the next two years was put inperspective yesterday when the company said third quarter earningsexcluding special items plummeted 81% to $61 million, or$0.19/share, compared to $313 million, or $0.96/share, in the thirdquarter of last year. Net income, including special items anddiscontinued operations, was $872 million, or $2.67 per dilutedshare, compared to $516 million, or $1.57/share in 3Q97.

Florida Gas Transmission may not be the only interstatetrunkline in Florida if Williams-Transco succeeds in its plan foran underwater pipeline from offshore Mobile Bay through the Gulf ofMexico to landfall near Tampa on Florida’s southwest coast.