Reporting

Reporting that its Washington Ranch Storage Field was experiencing maximum withdrawals, El Paso declared an Unauthorized Overpull Penalty situation Tuesday. It urged shippers to review their supply/demand balances and the performance of their suppliers to insure that sufficient gas is delivered to El Paso to cover the gas being taken off-system. The pipeline said it will limit scheduled volumes at underperforming interconnects.

Reporting that its Washington Ranch Storage Field was experiencing maximum withdrawals, El Paso declared an Unauthorized Overpull Penalty situation Tuesday. It urged shippers to review their supply/demand balances and the performance of their suppliers to ensure that sufficient gas is delivered to El Paso to cover the gas being taken off-system. The pipeline said it will limit scheduled volumes at underperforming interconnects.

Houston-based Ocean Energy Inc. continued on its acquisition trail last Monday, reporting it has entered into a definitive purchase and sale agreement with EnSight Resources L.L.C. to acquire all of EnSight’s oil and gas assets, located primarily in East Texas and North Louisiana. The companies said they expect the approximate $121 million transaction to close on or before April 20 with an effective date of Jan.1, 2001.

Houston-based Ocean Energy Inc. continued on its acquisitiontrail Monday, reporting it has entered into a definitive purchaseand sale agreement with EnSight Resources L.L.C. to acquire all ofEnSight’s oil and gas assets, located primarily in East Texas andNorth Louisiana.

In an effort to halt the exercise of significant market power inthe California bulk power markets, FERC staff has proposed that thestate-run Independent Operator System (Cal-ISO) be permitted tomitigate prices on power transactions in its real-time marketsduring periods of reserve deficiencies, such as Stage 3emergencies.

In an effort to halt the exercise of significant market power inthe California bulk power markets, FERC staff has proposed that thestate-run Independent Operator System (Cal-ISO) be permitted tomitigate prices on power transactions in its real-time marketsduring periods of reserve deficiencies, such as Stage 3emergencies.

An underground battle was being waged last week over the FERCchairmanship, with several sources reporting that current ChairmanCurt L. Hebert may be asked to step aside to make way for Pat WoodIII, who now heads up theTexas Public Utility Commission (PUC).Wood was appointed to the PUC in 1995 by then-Governor George W.Bush and was a member of the Bush energy transition team.

An underground battle was being waged last week over the FERCchairmanship, with several sources reporting that current ChairmanCurt L. Hebert may be asked to step aside to make way for Pat WoodIII, currently chairman of the Texas Public Utility Commission(PUC). Wood was appointed to the PUC in 1995 by then-GovernorGeorge W. Bush and was a member of the Bush energy transition team.

Storage levels continue down a perilous path with the AGAreporting 175 Bcf storage withdrawal last week. The report wasslightly below the Street consensus and only 2 Bcf greater thanduring the same week last year, but it left the nation’s storageinventory 25% lower than year-ago levels entering the coldest partof winter.