Remainder

El Paso Corp. has formalized an agreement with officials in California, Washington, Oregon and Nevada to resolve the principal litigation and claims following the western power crisis two years ago. The formal settlement, announced on Thursday, was proposed in March (see NGI, March 24). On Friday, the participants took the final procedural step as well, which was required to ensure the settlement is completed.

ANR Pipeline said it will limit interruptible (rate schedule DDS and MBS) storage account activity for the remainder of the injection period (through October 31). Due to current and projected storage inventory, it is notifying all DDS and MBS customers that their account balances, as of Sept. 16 will be limited to zero net injections from Sept. 17 through Oct. 31. ANR said it will continue to allow injections into either DDS or MBS during this period provided that an equal or greater amount of gas is withdrawn prior to Nov. 1. Daily operating conditions and firm service confirmations will determine the daily level of interruptible storage activity allowed.

The Senate Energy and Natural Resources Committee does not plan to proceed with the Republican nominee for FERC, Joseph T. Kelliher, until the White House taps a Democratic appointee, namely former New Mexico regulator Suedeen Kelly, for the agency, said a spokesman for the committee.

Following the wide variety of temperatures seen across the nation during the Thanksgiving weekend, Salomon Smith Barney Meteorologist Jon Davis said the temperature pattern during the rest of November and the first few days of December is expected to be “normal,” which he allowed is something that much of the U.S. has not experienced this month.

BP Amoco grew its share of the Destin Pipeline from one-third totwo-thirds by acquiring the one-third share of Southern Natural GasCo. Tejas Destin LLC holds the remainder.

Enron North America has closed on the purchase of ColumbiaEnergy Services, the remainder of Columbia Energy Group’swholesale marketing and trading division, for $38.3 million.

Attempting to lower its energy costs, Washington-based PugetSound Energy announced yesterday an agreement to buy out theremainder of a large gas-supply contract from Cabot Oil & GasCo. for $12 million. As a result of this deal, Puget will becomethe supplier to its own 160 MW co-generation plant near Bellingham,WA, which it purchased earlier this year. Puget expects to reduceits gas costs by 5 to 15% annually for the duration of theremaining nine years of the contract.

PaineWebber has revised its composite spot forecast for naturalgas prices upwards by eight cents to $2.20/MMBtu for the remainderof the year. This compares to an industry consensus of $2.08/MMBtu.

After etching what some feel could be the range for theremainder of the April contract’s life with Monday’s $1.69 low andTuesday’s $1.825 high, the market stayed pat Wednesday-tradinginside a tight 3-cent range. And while no fresh fundamental forceswere seen to usher the market in either direction, sourcesindentified a host of limiting technical factors in yesterday’sprice action. The April contract finished up 0.5 cents to $1.795.