Seeking

Destin Pipeline Co. has filed at FERC to have cost limitationson its “CNG Lateral” waived in light of delays that pushed theproject’s cost to $35.1 million, well above $19.6 million allowedfor in the Commission’s certification of the project last year(Docket No. CP98-238).

Destin Pipeline Co. filed at FERC last week to have costlimitations on its “CNG Lateral” waived in light of delays thatpushed the project’s cost to $35.1 million, well above $19.6million allowed for in the Commission’s certification of theproject last year (Docket No. CP98-238).

Seeking emergency relief for Texas oil and gas producerssuffering from low commodity prices, the three-member TexasRailroad Commission (TRC) last week voted to propose statelegislation to suspend severance tax payments when the price foroil and gas drops below $15/barrel of oil or $1.50/Mcf of naturalgas as determined by the Comptroller of Public Accounts

Seeking emergency relief for Texas oil and gas producerssuffering from low commodity prices, the three-member TexasRailroad Commission (TRC) last week voted to propose statelegislation to suspend severance tax payments when the price foroil and gas drops below $15/barrel of oil or $1.50/Mcf of naturalgas as determined by the Comptroller of Public Accounts.

The meltdown of the early December aftermarket continued Tuesdayalthough many points made small rallies late in the day from theirbottom levels of the morning. Prices in nearly all production areaswest of Appalachia sank well below $1.50-a level in the “old days”at which many producers used to consider summer shut-ins. ThePG&E citygate was one of the only points still registeringquotes above $2.

New York Public Service Commission issued a notice last weekseeking comments on how “strandable” gas capacity costs createdwhen existing sales customers migrate to transportation serviceshould be recovered from customers. Interested parties should filetheir comments by Dec. 14.

Seeking to become a “one-stop” energy shop and a larger regionalenergy company, Carolina Power and Light (CP&ampL) announced itsinitial entry into the gas industry with the acquisition of NorthCarolina Natural Gas (NCNG) through a stock-for-stock transactionworth $354 million. The agreement is still pending state regulatoryand shareholder approval, so no closing date has been announced.The acquisition reflects the strategy CP&ampL announced last Aprilto become “an organization with the potential to be a one-stopshopping service for our customers.”

Seeking to become a “one-stop” energy shop and a larger regionalenergy company, Carolina Power and Light (CP&L) announced itsinitial entry into the gas industry with the acquisition of NorthCarolina Natural Gas (NCNG) for $354 million in stock. Theagreement is still pending state regulatory and shareholderapproval, so no closing date has been announced.

Seeking a generic response to the restraints on competitionposed by pipelines’ bundling of production area costs into marketarea rates, FERC has asked parties in cases involving threepipelines delivering to the East Coast to respond to itstransportation rulemaking.