Preliminary

While Questar continues preliminary work on its California-boundmainline, Kern River Pipeline has put its plans to run a newlarge-diameter pipeline into Southern California on hold, awaitingregulatory action from the dilatory California Public UtilitiesCommission.

While Questar continues preliminary work on its California-boundmainline, Kern River Pipeline has put its plans to run a newlarge-diameter pipeline into Southern California on hold, awaitingregulatory action from the dilatory California Public UtilitiesCommission.

Avista Corp. has warned preliminary estimates indicate secondquarter earnings per share will fall below securities analysts’current consensus second quarter estimate of $0.33 per share due tolosses in April and May within Avista Energy, its national energymarketing and trading. First quarter earnings in 1998 were $0.27per common share. The prospects for a disappointing second quarterfollow on first quarter earnings of $0.34 per diluted share, wellbelow the $0.56 per share in first quarter 1998.

Oklahoma Attorney General Drew Edmondson is appealing the Oklahoma Corporation Commission’s (OCC) preliminary approval of a stipulation agreement between the OCC and Oneok (parent of Oklahoma Natural Gas). The agreement consolidates two ongoing rate cases and provides for an interim rate reduction for Oklahoma customers of ONG and Kansas Gas Service of $5 million per year beginning in September. The attorney general maintains a larger rate reduction may be in order.

Oklahoma Attorney General Drew Edmondson is appealing theOklahoma Corporation Commission’s (OCC) preliminary approval of astipulation agreement between the OCC and Oneok (parent of OklahomaNatural Gas) that consolidates two ongoing rate cases and providesfor an interim rate reduction for Oklahoma customers of ONG andKansas Gas Service of $5 million per year beginning in September.The AG maintains a larger rate reduction may be in order.

Judging from preliminary gas marketer ranking results for thefirst quarter, the big continue to get even bigger and the smallergas marketers are increasing their volumes as well. So far in NGI’smarketer survey, 13 of the top-20 increased their gas sales volumesby more than 1 Bcf/d from the same period in 1998. Only four of thetop-20 did less business in 1Q99 than 1Q98.

Northwest Pipeline experienced a leak Tuesday afternoon on itsVancouver (WA) Lateral. There were no injuries. Preliminaryinvestigation indicates third-party damage, the pipeline said.Service was disrupted to direct industrial customer Vanalco and toindustrial customers of LDC Northwest Natural Gas in the area untilbeing restored at 11:24 p.m. PST Tuesday.

Some speculated Alliance Pipeline might be hurt by FERC’s movenot to issue preliminary determinations (PDs) to the four projectsthat would provide takeaway capacity for Canadian gas from Chicagoto East Coast markets. But Alliance officials last week quicklydismissed that notion.

Northwest Pipeline’s preliminary investigation indicates thatland movement affecting about 500 feet of pipe was the cause of aline break Friday night near Stevenson, WA (see Daily GPI, March 1,2). Following industry practice, Northwest will send segments ofthe pipe for metallurgical testing to verify the rupture’s causeconclusively. A temporary 16-inch surface pipeline is beinginstalled to restore service to LDC Northwest Natural Gas in theNorth Bonneville, WA, area. Northwest Pipeline said it is workingwith geotechnical experts to plan permanent re-routing of theruptured 26-inch line outside the boundaries of the land movementarea.