Plan

Shippers on Natural Gas Pipeline Co. of America (NGPL) havecalled on FERC to reject a tariff proposal that would hold the”party tendering gas” liable for damages to the pipeline’sfacilities and third-party facilities that are the result oflower-quality gas entering NGPL’s system. Many contend the proposedtariff change is much too vague.

Great River Energy of Elk River, MN, and Minnesota Power Inc. ofDuluth, MN, plan to combine power supply assets and customer loadsfor power pool operations. MPEX, a division of Minnesota Power,will provide power trading, least-cost supply and risk managementservices for the combined operations. Ownership of existing assetsand customer supply arrangements will not change.

Cheniere Energy Inc. of Houston this week detailed a plan toaccelerate its exploration program in the shallow Gulf of Mexicoregions. “Cheniere has a window of opportunity that may last 12 -18 months, during which time the economics of exploration drillingin the Gulf of Mexico will be particularly attractive,” saidPresident Michael L. Harvey. “Currently, oil and gas prices arerelatively high, but the costs of drilling are low.”

On a 3-2 split vote, California regulators last week dismissed aproposal for allowing gas distribution competition in anindustrialized part of the East San Francisco Bay. The majority,led by the current president of the California Public UtilitiesCommission, rejected an alternative proposal by two members of thefive-member CPUC.

California regulators last week on a 3-2 split vote dismissed aproposal for allowing natural gas distribution competition in anindustrialized part of the East San Francisco Bay. The majority,led by the current president of the California Public UtilitiesCommission, rejected an alternative proposal by two members of thefive-member CPUC.

Peoples Energy Corp. and Enron North America Corp. (ENA), asubsidiary of Enron Corp., are partnering to target the Chicagoenergy market. Enron and Peoples plan to form a joint entity toexpand and enhance Peoples’ existing gas market hub and providemarketing services to the 1.1 Tcf Chicago marketplace. The newentity will optimize 10 to 20 Bcf/year of Chicago area storagecapacity and related transportation and will provide physical andfinancial product and service offerings, such as balancing,storage, exchange, and title tracking for hub customers.

Williams’ Northwest Pipeline and BC Hydro have announced a jointventure to study the feasibility of building an 85-mileinternational pipeline extension from Sumas, WA, to VancouverIsland, BC, to serve two proposed new cogeneration plants on theisland. It would be a three-year, $120 million project to transportabout 100 MMcf/d for the cogeneration plants and additionalindustrial loads on both sides of the international border.

Williams’ Northwest Pipeline and BC Hydro have announced a jointventure to study the feasibility of building an 85-mileinternational pipeline extension from Sumas, WA, to VancouverIsland, BC, to serve two proposed new cogeneration plants on theisland. It would be a three-year, $120 million project to transportabout 100 MMcf/d for the cogeneration plants and additionalindustrial loads on both sides of the international border.

Among the more notable sacrifices being made to get KN Energy “out of the ditch” and back down the highway are the decisions by Richard Kinder and William Morgan to work for annual salaries of $1 with no bonuses. They will become the two largest shareholders of the new company once the merger of Kinder Morgan and KN is completed. They also will be the top two executives.