Major producers and utilities registered strong protests toTrunkline Gas Co.’s proposal to spin down a 720-mile portion of its26-inch diameter mainline, saying that while this action may be inthe pipeline’s best interest it’s not “in the public interest.”
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New MMS RIK Program Set for Spring
The Department of the Interior’s Mineral Management Service(MMS) announced a continuation of the Outer Continental Shelfportion of its royalty-in-kind (RIK) pilot program Tuesday and hasdoubled the amount of gas previously offered. The nearly 500 MMcf/dof production will go on sale this spring, the MMS said. Detailsfor the sale are still being finalized.
TransCanada Puts Fort Liard Plans on Hold
TransCanada PipeLines has shelved plans to build a 90-mileextension of its mainline system into the southern portion of theNorthwest Territories to tap a major new production area near FortLiard that is estimated to hold 5 Tcf of potential reserves. Thepipeline company said there is not enough producer interest at thistime so the project has been put on indefinite hold. However, themuch larger Mackenzie Delta pipeline project, which would extendabout 1,800 miles to the northwest, is still on the front burner.
First Round of Bidding on El Paso Flops
El Paso Natural Gas announced yesterday that it awarded only asmall portion of the 1.4 Bcf/d of soon-to-be available capacity onits system to one shipper – Williams Energy Marketing and Trading.The pipeline rejected the majority of shipper bids because theyfailed to either meet or exceed the “minimum revenue threshold”requirements for the capacity.
Dynegy Control of El Paso Capacity Diluted
FERC last week dealt a partial blow to Dynegy Marketing andTrade’s control over a portion of its contracted-for capacity on ElPaso Natural Gas to California, resulting in a measured victory forthe state’s regulators and San Juan producers. Dynegy enjoyed atriumph of sorts as well, however. The Commission upheld the bulkof its prior decision approving the whopping El Paso-Dynegyarrangement, finding that while it posed some competitive concerns,it was not “unduly discriminatory” in nature.
Dynegy Control of El Paso Capacity Diluted
FERC has dealt a partial blow to Dynegy Marketing and Trade’scontrol over a portion of its contracted-for capacity on El PasoNatural Gas to California, resulting in a measured victory for thestate’s regulators and San Juan producers. Dynegy enjoyed a triumphof sorts as well, however. The Commission upheld the bulk of itsprior decision approving the whopping El Paso-Dynegy arrangement,finding that while it posed some competitive concerns, it was not”unduly discriminatory” in nature.
Discoveries, Disputes Grow in NW Territories,
Discoveries are approaching 1 Tcf in a southern portion of theNorthwest Territories, which is emerging as Canada’s hottest newnatural-gas drilling play, fanning flames under a simmeringregulatory and political dispute over pipeline service throughAlberta.
Discoveries Grow in Canadian North, Prompting Need for New Pipe Access
Discoveries are approaching 1 Tcf in a southern portion of theNorthwest Territories, which is emerging as Canada’s hottest newnatural-gas drilling play, fanning flames under a simmeringregulatory and political dispute over pipeline service throughAlberta.
Koch Seeks Abandonment of Texas Line, Laterals
Koch Gateway Pipeline has asked FERC for the go-ahead to takeout of service the western portion of its Latex-Fort Worth Mainlineand associated laterals. The system, which extends from near WillsPoint, TX, to Fort Worth, consists of about 102 miles of pipelineand laterals ranging in diameter from 4 to 20 inches.
Vector Gets Environmental Nod at FERC
The Federal Energy Regulatory Commission has granted finalenvironmental approval to the U.S. portion of Vector Pipeline,moving it within one step of receiving certification. TheCommission’s action comes in the wake of the National EnergyBoard’s final approval of the Canadian leg of the project.