Regulatory

The transaction, subject to approval by Pennzoil’s stockholders and customary regulatory reviews, is expected to close in the second half of 2002 and is expected to add to Shell’s earnings and cash flow in the first full year after it is completed. Shell’s estimated pre-tax benefits from the transaction will total about $140 million a year by 2004. One-time transaction costs were estimated at $100 million.

El Paso Corp.’s Tennessee Gas Pipeline has asked the Federal Energy Regulatory Commission for the go-ahead to move forward with its South Texas Expansion Project, which would connect the pipeline’s existing South Texas system in Hidalgo County, TX, to a new natural gas line being constructed in northern Mexico.

The Federal Energy Regulatory Commission last week expunged from its books a 1968 policy statement that forced competition to take a backseat in offshore Louisiana. It did this by encouraging pipeline companies to coordinate offshore pipe projects to defray construction costs and ensure full utilization of gas transportation facilities, as well as to accelerate gas exploration and production.

The Federal Energy Regulatory Commission has expunged from its books a 1968 policy statement that encouraged pipeline companies to build joint projects off the coast of Louisiana to defray construction costs and ensure full utilization of gas transportation facilities, as well as to accelerate gas exploration and production.

Because of the significance of the undertaking, the Federal Energy Regulatory Commission last week extended the deadline for the energy industry to submit comments on what makes up “critical energy infrastructure” — an exercise that could considerably limit public access in the future to information about natural gas, electric, crude oil and hydroelectric facilities.

Because of the significance of the undertaking, the Federal Energy Regulatory Commission has granted a two-week extension to the energy industry to submit comments on what makes up “critical energy infrastructure” — an exercise that could considerably limit public access in the future to information about natural gas, electric, crude oil and hydroelectric facilities.

The Federal Energy Regulatory Commission issued a final rule last week that will seek to expand the ability of releasing shippers to recall pipeline capacity from replacement shippers.

The Federal Energy Regulatory Commission approved an expansion of Columbia Gas Transmission Corp.’s pipeline to provide 125,000 Dth/d of additional capacity for a new power plant at the Pennsylvania-Delaware border. The project will provide service to FPL Energy’s 750 MW Marcus Hook power plant. The plant would be built in both New Castle County, DE, and Delaware County, PA. The $22.3 million pipeline expansion project, which is expected to be completed this fall, would involve adding an extension from the company’s mainline to the plant and upgrading compressor stations. Two 6,000 hp compressors will be added to the Eagle and Downingtown stations on its mainline in Chester County, PA, and 1.3 miles of 20-inch diameter lateral will be added from Columbia’s Delmarva meter station on Line 1-345 in New Castle County DE. FERC said Columbia could roll in the expansion and replacement project costs with it existing rates, given that this will result in a reduction in rates for existing customers. The replacement phase of the project calls for Columbia to remove two aged compressors at its Downingtown station.

The staff of the Federal Energy Regulatory Commission is undertaking a “comprehensive” review of the reporting requirements for natural gas pipelines, the electricity industry and oil pipelines to determine which still are needed and which aren’t.