Pilots

The Interior Department’s Minerals Management Service contends arecent bid for FERC to exclude Outer Continental Shelf (OCS)pipelines from an industry-wide ban on “buy-sell” transactions isbased on the incorrect assumption that such transactions routinelyoccur as part of the agency’s royalty in-kind (RIK) projects.

KN Energy said yesterday its Nebraska customer choice programhas topped all other pilots in the U.S. with more than 68% ofeligible Nebraskans participating. About 56,100 customers out of82,500 eligible elected to receive gas from an alternativesupplier, putting KN’s program well over Columbia Gas of Ohio on apercentage basis – only 35% of Columbia’s customers in its Toledo,OH, pilot are participating – but slightly less than Columbia inthe number of customers choosing alternative suppliers. Columbiacurrently has 57,500 customers signed up.