Cross Bay Holds Open Season for NY Service

Cross Bay Pipeline Co., a limited liability company formed bysubsidiaries of Williams, Duke Energy and KeySpan Energy, announcedit is holding a 30-day open season from Oct. 15 to Nov. 13 todetermine market interest in 125,000 Dth/d of firm capacity to theNew York City metropolitan area.

October 15, 1998

Williams Buys Back Kern River Option

Williams’ Kern River Pipeline has taken action to ensure itscontinued control over market access, completing an agreement tobuy-out a future option on the California portion of the line heldby Southern California Gas. The option would have been exercisablein 2012.

September 17, 1998

Rockies Gas Coming Into Its Own

Over the next decade as the Rocky Mountain is saved byincreasing pipeline transportation, the trend of reserve growth inrecent years will finally pay off in dramatic production increases,Fred Julander, past chairman of the Colorado Oil & Gas Assoc.told the group’s annual meeting.

August 13, 1998

Calpine, Bechtel to Build 2,000 MW of Gas-Fired Power

Expanding on its plan to add additional gas-fired powergeneration capacity near the Dow Chemical power plant and pipelinefacilities in Pittsburg, CA, that it purchased earlier this month,Calpine Corp. announced a partnership yesterday with BechtelEnterprises to build 2,000 MW of gas-fired power generation inNorthern California, primarily near San Francisco.

July 29, 1998

Transportation Note

Mojave Pipeline will shut in its Mt. Poso delivery point foreight hours July 28 to modify piping. El Paso’s Monument B Plantwill be down eight hours on July 29 for piping repairs. TheIWARMONU interconnect will be completely shut in while ITEXNEUNwill be limited to 35 MMcf/d.

July 13, 1998

Sale of Columbia’s Project Penny Facilities Opposed

Columbia Gas Transmission’s proposal to sell its Project Pennytransmission system in western New York and northwesternPennsylvania to Norse Pipeline LLC, which seeks to refunctionalizethe facilities as gathering, is a “thinly-veiled attempt todramatically increase” rates to move gas on the system atproducers’ expense, charged an independent producer.

June 30, 1998

Dynegy Sells Haynesville Plant to Duke

Dynegy Inc. (formerly NGC Corp.) sold its Haynesville, LA, gasprocessing and fractionation facility and related gas and gasliquids pipeline systems to Duke Energy Field Services. The sale ofthe non-strategic asset continues the rationalization of certaingas processing plants acquired from Trident and Chevron, which hasresulted in greater operating efficiencies and lower costs, Dynegysaid.

June 12, 1998

British Columbia Development on the Move

The apparent success of the Alliance Pipeline Project islighting a fire under government and industry plans to build upnatural gas production behind its starting point, in northeasternBritish Columbia, into a mainstay of supplies for markets east ofthe Rocky Mountains.

May 4, 1998

Transportaion Notes

Nautilus Pipeline said it is on track to begin receiving gasagain at Ship Shoal 207 at the start of the May 1 gas day.Processing of a large condensate slug at Exxon’s Garden City Plantonshore Louisiana (see Daily GPI, April 17) is expected to becompleted by Thursday.

April 29, 1998

Consultant: Mexico Tariff Holds Up Pipes

The current North American Free Trade Agreement (NAFTA) tariffon gas imports into Mexico is holding up pipeline development fromthe U.S. to northern Mexico, said consultant George Baker of Baker& Associates. “The only people that have to pay this tariff arethe private industry who would contract with a U.S. gas supplier.If they buy [gas] from Pemex [Petroleos Mexicanos], however, it’s arolled-in price and they don’t pay it.” The tariff, originally 10%in 1991, is rolled back 1% a year and currently stands at 5%.That’s still too high for the private sector to feel confident itcan make money shipping gas to Mexico, Baker told attendees Tuesdayat the conference portion of Houston Energy Expo ’98, formerlyknown as Gas Fair. “That’s an important delay, and the origin of itis largely Pemex’s wanting to say, ‘we’re not ready for competitionyet.’ Some people say, ‘have you ever heard of a state monopolythat has acknowledged that it’s ready for competition yet.’ Mostpeople say no.”

March 11, 1998