Regulatory

In what was a major blow for El Paso Corp. last week, the Federal Energy Regulatory Commission granted the request of the Office of General Counsel’s Market Oversight and Enforcement Section (MOE) for an inquiry into whether El Paso Natural Gas withheld transportation capacity from customers last winter in an attempt to drive up prices for natural gas delivered to the Southern California border.

The Federal Energy Regulatory Commission Wednesday generally re-affirmed key earlier decisions on price mitigation measures for California and the West, making minor modifications in a sweeping clean-up order encompassing a number of dockets in its year-and-a-half long battle to subdue the western power crisis.

The Federal Energy Regulatory Commission (FERC) issued a preliminary determination on non-environmental issues to the Islander East Pipeline Co. LLC to build a 40-mile pipeline that will bring natural gas from Connecticut to Long Island, NY.

In what was a major setback for El Paso Corp., the Federal Energy Regulatory Commission Wednesday granted the request of the Office of General Counsel’s Market Oversight and Enforcement Section (MOE) for an expanded investigation into whether El Paso Natural Gas withheld transportation capacity from customers last winter in an attempt to drive up prices for natural gas delivered to the California border.

The Federal Energy Regulatory Commission said Thursday that a decision on whether to revoke a certificate allowing Williams to reactivate and expand its Cove Point liquefied natural gas (LNG) terminal plant in Maryland won’t be made until late January.

After it had obtained all of the necessary regulatory approvals, Burlington Resources Inc. said Tuesday that it has received acceptance of its C$53.00 per share cash tender offer to acquire all the common shares of Canadian Hunter Exploration Ltd. by Canadian Hunter’s shareholders. A total of 58.7 million shares of Canadian Hunter common stock were tendered under the offer. The deal represents more than 98% of Canadian Hunter’s shares outstanding. Burlington said it intends to take up the tendered shares immediately. Burlington said it would acquire the remaining shares of Canadian Hunter by compulsory acquisition for C$53.00 per share in cash. “Canadian Hunter’s performance continues to exceed expectations, and the completion of this transaction further establishes Burlington as a significant player in Canada,” said Bobby S. Shackouls, Burlington CEO. “Our combined entities are uniquely positioned for future profitable growth, and we are delighted to welcome Canadian Hunter’s employees to the Burlington Resources family.”

Duke Energy’s Texas Eastern Transmission LP unit said that it is seeking Federal Energy Regulatory Commission (FERC) approval to increase the capacity of its existing natural gas pipeline system in Pennsylvania and New Jersey to serve the growing needs of a local distribution company.

Duke Energy’s Texas Eastern Transmission LP unit said Thursday that it is seeking Federal Energy Regulatory Commission (FERC) approval to increase the capacity of its existing natural gas pipeline system in Pennsylvania and New Jersey to serve the growing needs of a local distribution company.

The Federal Energy Regulatory Commission last week signaled the beginning of a shift in its policy on negotiated transactions, saying it will require pipelines negotiating customer-specific deals that include “material deviations” from their form of service agreements to offer the service to other similarly situated shippers on their systems.