Atmos Energy subsidiary Atmos Pipeline and Storage LLC plans to seek an exemption from regulatory oversight by the Federal Energy Regulatory Commission for a 20-inch diameter natural gas gathering system it plans to build in Eastern Kentucky. The proposed 50-mile Straight Creek Gathering System would be capable of moving up to 100,000 MMBtu/d with the ability to expand to 225,000 MMBtu/d. It is designed to relieve transportation constraints and allow gas to flow from shut-in wells. The $80 million system would originate in Floyd County, KY, and extend to an interconnect with the Tennessee Gas Pipeline in Carter County, KY. Atmos said the project is supported by independent oil and gas producers in the area, including Kinzer Drilling, which will have an ownership stake in the project. More than a dozen other producers have signed memoranda of understanding to commit gas volumes to the system and to agree to commercial terms. “We expect our Straight Creek project to help boost natural gas drilling and production in the Big Sandy region of Kentucky,” said Mark H. Johnson, senior vice president, nonutility operations, of Atmos Energy. “The gathering system should help provide year-round dependability for gas producers and should indirectly benefit natural gas customers by helping bring more gas supplies to market as demand continues to grow.” Johnson said production from 1,700 gas wells on the eastern side of the state has been shut in. Construction is expected to begin in the fall of 2006, with operations expected to begin by the summer of 2007.
Oversight
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Outgoing director of the FERC Office of Market Oversight and Investigation (OMOI) William F. Hederman has joined the law firm of Morgan, Lewis & Bockius LLP as director of the firm’s newly established Energy Resources Group, an affiliated group performing nonlegal professional services for the firm’s clients. Hederman will be offering energy clients insights into the development of compliance programs and internal audit procedures to satisfy FERC’s regulatory requirements. Hederman announced in late September that he would be leaving the Commission. Chairman Joseph Kelliher appointed FERC veteran Susan Court to head OMOI (see Daily GPI, Nov. 9). George D. Billinson is also moving over from OMOI’s enforcement division. Billinson’s practice for Morgan Lewis will focus on regulatory compliance, enforcement, investigations, audits and litigation.
FERC Veteran Susan Court Named to Head Up FERC’s OMOI Office
FERC Chairman Joseph Kelliher on Tuesday named Susan J. Court, a 23-year veteran of the agency, to be the new director of the Office of Market Oversight and Investigations (OMOI), replacing William Hederman who headed up the office under the administration of former Chairman Pat Wood.
Natural Gas Prices Felt in Pacific Northwest, Power Council Says
Although it doesn’t need to revise its power forecasts for the region, the Northwest Power and Conservation Council’s power planning director Monday told the group’s oversight board power committee that natural gas prices were high even before the Gulf of Mexico hurricanes and they have increased dramatically following the back-to-back natural disasters. The power council’s plans shaped late last year anticipated the type of wholesale gas price volatility being experienced, according to Terry Morlan, the council planning director.
LADWP Board Approves Multi-Muni Strategy for Acquiring Gas Reserves
With the caveat that city council approval ultimately is needed, the oversight board for the Los Angeles Department of Water and Power (LADWP) Monday okayed the framework for the nation’s largest municipal utility to acquire its own natural gas reserves as part of a consortium of public power utilities, and adopted a formal renewable portfolio standard (RPS) calling for 20% green power sources by 2017.
LADWP Board Approves Multi-Muni Strategy for Acquiring Gas Reserves
With the caveat that city council approval ultimately is needed, the oversight board for the Los Angeles Department of Water and Power (LADWP) Monday okayed the framework for the nation’s largest municipal utility to acquire its own natural gas reserves as part of a consortium of public power utilities, and adopted a formal renewable portfolio standard (RPS) calling for 20% green power sources by 2017.
FERC OKs Standards of Conduct Settlement for Westar Energy
FERC last Tuesday approved a stipulation and consent agreement between FERC’s Office of Market Oversight and Investigations’ Division of Enforcement and Westar Energy Inc. that imposes a detailed, three-year plan designed to prevent future violations of FERC standards of conduct, including improper sharing of transmission information and incomplete posting of data on Westar’s OASIS website.
FERC Settles With Coral Over False Price Reports
FERC announced last Thursday it has approved a $4 million settlement agreement between its Office of Market Oversight and Investigations (OMOI) and Coral Energy Resources related to Coral’s failure to disclose to the Commission that a trader provided false transaction information to price survey publishers in the 2000-2001 time period (IN05-5).
FERC Settles With Coral Over False Price Reports
FERC announced Thursday it has approved a $4 million settlement agreement between its Office of Market Oversight and Investigations (OMOI) and Coral Energy Resources related to Coral’s failure to disclose to the Commission that a trader provided false transaction information to price survey publishers in the 2000-2001 time period (IN05-5).
Dominion Let Off Hook in FERC Probe of Storage Error
Officials at FERC’s Office of Market Oversight and Investigation (OMOI) said last week they found no evidence that Dominion employees had prior knowledge of the erroneous storage data that a Dominion “clerk” mistakenly submitted to the Energy Information Administration (EIA) last November.
