Sent

Producers and analysts sent up red flags last week at GasMart/Power 2001 in Tampa, FL, about future gas supply potential north of the border. Currently known resources appear to be inadequate and at the current rate of production would be depleted in little more than a decade, they said. Furthermore, the common belief that new sources of supply will be adequate to replace rapidly depleting reserves may be mistaken, the experts said.

Producers and analysts sent up red flags yesterday at GasMart/Power 2001 in Tampa, FL, about future gas supply potential north of the border. Currently known resources appear to be inadequate and at the current rate of production would be depleted in little more than a decade. Furthermore, the common belief that new sources of supply will be adequate to replace rapidly depleting reserves may be mistaken, the experts said.

The White House last week forwarded to Capitol Hill the nominations of Texas regulator Patrick Wood III and Pennsylvania regulator Nora M. Brownell to sit on the Federal Energy Regulatory Commission.

The White House yesterday formally sent its nomination of Texas regulator Patrick Wood III as a member of the Federal Energy Regulatory Commission to the Senate to begin confirmation hearings.

High commodity price have sent profits soaring for both major producers and independents. Number one major Exxon Mobil Corp. reported nearly double the profits from a year ago, and fourth-ranked Conoco Inc. also jumped. Independents EOG Resources Inc. and Houston Exploration Co., meanwhile, attributed record earnings to not only prices, but robust domestic gas production.

The governors of California, Oregon and Washington Monday sent aletter to the Federal Energy Regulatory Commission renewing earlierrequests for a temporary western wholesale price cap onelectricity, but allowing a $25/MWh profit over the cost of thepower. A similar proposal, they said, has been offered by FERCCommissioner William Massey.

A California spike that sent border quotes skyrocketing as highas $33 and was accompanied by moderate firmness in the Southwestbasins stood in sharp contrast to a softer overall market Thursday.Outside the California/Southwest region, prices tended to rangefrom barely lower in the Rockies and at a few scattered Gulf Coastpoints to down 15-20 cents at Northeast citygates.

One marketer was certain it had to be psychological factors thatsent most markets lower by various amounts Tuesday because, as henoted, fundamentals and the screen indicated an upward pathinstead. Few points besides Malin and the PG&E citygate managedgains as the majority ranged from essentially flat to down about adollar in the Northern Natural Gas market area.

Reps. James L. Oberstar (D-MN), John D. Dingell (D-MI) and DavidR. Obey (D-WI) sent letters to President Clinton and HouseDemocratic Minority Leader Richard A. Gephardt last week urgingrejection of an effort to include the Senate’s pipeline safety bill(S. 2438) as a rider to an appropriations bill or other “must-pass”legislation.