Plan

Coastal’s Colorado Interstate Gas (CIG) has teamed up withSouthwest Gas subsidiary Paiute Pipeline on a new gas pipelineproject designed to deliver new coal-bed methane production in Utahto growing markets in Nevada and Southern California.

A number of interstate pipelines and pipeline customers lastweek indicated they would oppose any FERC proposed rule requiringpipes to formally notify affected landowners about constructionprojects prior to filing applications, saying that changes toexisting practices were unnecessary, could further snarl thecertification process and might even aggravate what are alreadytense pipeline-landowner relationships. In late September, FERCsuggested in a notice of technical conference that it was leaningtoward such an initiative in order to involve landowners earlier inthe certification process.

Sheridan Energy Inc. intends to form a joint venture withAmerada Hess Corp. to explore, develop and produce from all ofHess’s Sacramento Basin, CA, gas properties. The joint venture willalso seek to explore, develop and produce oil and gas from otherHess U.S. onshore and offshore properties. Sheridan has agreed tocontribute $58 million and other considerations, and Hess willcontribute its California properties along with certain other U.S.properties. The agreement is subject to due diligence and customaryconditions. The parties intend to sign a definitive agreement, byDec. 15 and to close the transaction not later than Jan. 15.Sheridan anticipates financing its contribution through additionalbank borrowings, cash flow and third party debt or equityfinancing. Should a joint venture agreement not be reached,Sheridan will proceed to acquire the California properties for $58million, closing Jan. 15.

Indiana Gas Co. and Citizens Gas, Light & Coke said theyplan to appeal to the Indiana Supreme Court an appellate courtdecision issued last week ordering the break-up of their jointventure energy marketing company, ProLiance Energy, which sellsmore than 200 Bcf of gas and 3 million MWh of power per year.

Washington Water Power (WWP) and CheckFree plan to makeInternet-based electronic bill paying an option for WWP’s 350,000residential electric and gas customers. By using CheckFree’s E-Billservice, customers will be able to receive full-color WashingtonWater Power bills at no charge — complete with graphics, logos andfull billing detail — through the World Wide Web. Once they haveenrolled, customers can view and pay their Washington Water Powerbills on line. Washington Water Power, whose primary service areacovers eastern Washington, north Idaho, and central Oregon, plansto rollout CheckFree E-Bill in mid-November.

FERC’s approval of El Paso’s $3.6 million Bondad Line expansion,which would increase capacity by 117 MMcf/d in October, likely willprovide some relief to Bondad shippers, who have struggled throughmany days of constraints and allocations on the San Juan Basinsystem.

Larry Bickle, John Strom and Chris Jones, the three founders ofTPC Corp. (formerly Tejas Power Corp., which was sold to PacifiCorpin April of last year) haven’t lost sight of their goal ofdeveloping a large network of new high-deliverability storage hubs.But in contrast to TPC, Western Hub Properties LLC (WHP), their newcompany formed in April, plans to focus on the West rather thanbuilding projects in the eastern U.S.

Western Gas Resources and an affiliate of Colorado InterstateGas announced plans to build a 90-mile 20-inch diameter gatheringsystem and a treating facility to serve the Powder River Basin ofWyoming. The line will be designed to reach the heart of thecoalbed methane development in Campbell and Converse Counties innortheast Wyoming. The system would have an initial capacity of 200MMcf/d, but anticipated participation by third parties will likelycause the system design to be extended and expanded, the companiessaid.

Natural Gas Pipeline Company of America’s (NGPL) proposal tospecify certain types of discounts in its tariff and avoid seekingFERC approval for each transaction won a partial victory last week.But nearly similar proposals of three El Paso Energy pipelines wererejected, and the trio was told to try again.