Ratchet

The controversy over how to define natural gas gathering in the Outer Continental Shelf (OCS) is likely to ratchet up a few notches at the Federal Energy Regulatory Commission and in the courts in the months ahead.

The softening that had begun in late trading Monday carried overto Tuesday’s activity, but the path back down wasn’t as steep asthe climb up.

Transco continues to ratchet upward IT availability into itsZone 6 market-area pool. Effective today until further notice, thepipeline said Monday, 100,000 dth/d each of interruptible capacitywill be available through the Linden (NJ) Regulator Station and forLeidy Line deliveries downtstream of the Centerville (NJ) RegulatorStation. It will offer another 100,000 dth/d of IT between Stations90 and 180 in Tiers I and II, but zero will be available in TierIII (Station 180 through East).

Adding to Monday’s gains the natural gas futures continuedhigher at Nymex yesterday as technical buying lifted the Junecontract in active trading. And with that 4.8-cent rally to $2.359,June was able to successfully fill in $2.31-33 daily chart gap andnotch its highest daily close in more than a year.