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A panel of Alaskan and Canadian politicians painted a colorful picture in Houston Tuesday of why pipeline construction to the Lower 48 from Alaska has never been more urgent — or more confusing. They are unanimous in their belief that the North Slope could deliver needed gas supplies, they still could not agree on where or how many pipelines should be built. Producers said they have just started studying pipeline routes and would rather not be pushed into one project rather than another.

The price picture looked pretty bleak for bullish types earlierthis week, but they were taking heart Wednesday from a cashrebound, further strength in futures and signs that winter weatherlikely will return for a new siege, just as the groundhog predictedlast Friday. Most eastern gains tended to be in the teens, but mostwestern points rose by 20 cents or more, with the PG&E citygate(up almost $1.50) as the leader of the pack.

Still reeling from a “devastating” weather picture the naturalgas futures market gapped lower on the open yesterday and continuedlower as traders added to short positions. By slipping 7.3 cents to$2.451 the December contract came perilously close to breakingthrough the lowest level of any spot contract since summer lowswere put in. The January contract, meanwhile, fared even worse,dropping 8.5 cents to finish at $2.596.

Fueled by strong cash prices, a constructive technical picture,and lingering storm concerns the natural gas futures market wasquick out of the gates yesterday as traders lifted the market toits highest point in over a month. However, the buying pressuredropped off as November prices crossed the $3.00 threshold, whichprompted participants to trim gains into the close. After notchinga $3.03 high, the November contract finished at $2.97, a 4.3-centadvance on the day.

FERC sent one major Midwest-to-Northeast pipeline project backto the drawing board last week but gave another competing project afinal green light. The $447 million Vector Pipeline emergedvictorious, receiving FERC’s final approval and a presidentialpermit in a draft order, while the $400 million TriState Pipelinewas told it must redesign the pipeline-lease portion of itsproposal to get FERC’s rubber stamp.

Essentially nothing had changed in the fundamental demandpicture Tuesday, and late-November cash prices responded with verylittle change themselves. Minuscule softness dominated at mostpoints, and the few declines rarely exceeded a nickel. Sources indiverse regions continued to report unseasonably mild temperatures.