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Destin Pipeline continued to keep about 600 MMcf/d of offshore gasshut in Tuesday and today. The latest word Tuesday from BP Amoco,operator of the Pascagoula (MS) Gas Plant into which Destin feeds, wasthat repairs of a leak in a downstream natural gas liquids line (seeDaily GPI, March 6) likely would not becompleted before late this evening, according to a Destinstaffer. However, Williams Field Services, which has a unit thatoperates the liquids line, said the line had been cleared andexcavation was starting Tuesday afternoon. “We should have a muchbetter picture of the work Wednesday morning,” a WFS spokesman said,adding that line service could be restored at any time during the day.

In response to a FERC directive, the California Power Exchange(Cal-PX) board last week decided to shut down day-ahead and day-ofwholesale electricity markets Jan. 31, bringing toÿa close one partof the state’s initial 1996 electric industry restructuring lawthat created the state-chartered, nonprofit public benefitscorporation to provide a wholesale spot market through whichCalifornia’s three major investor-owned utilities were required tobuy and sell all of their wholesale power. They are no longerrequired to do so.

Sen. Frank Murkowski (R-AK), chairman of the Senate Energycommittee, yesterday announced plans to hold hearings on theCalifornia energy crisis within the next week. The chairman echoedthe Bush administration’s position that California must take thelead in solving its problem with support from FERC, theadministration and Congress.

A potential Sonat shut-in of gas behind Toca, LA processingfacilities over the holiday weekend (see Daily GPI, Jan. 16) was averted. Repairs werecompleted at Enterprise’s Toca II plant and it resumed operationsSaturday evening, the pipeline said. That means bothEnterprise-operated facilities and the Western-operated plant “are nowprocessing all of the gas upstream of the plants based on theirrespective commercial arrangements,” Sonat added. It encouraged “allparties to maintain arrangements that will keep the processing plantsoperating at the level necessary to process all gas upstream of Toca.”

Chemical companies, forced to shut in operations because of highnatural gas prices, are nevertheless making money — by sellinggas futures contracts.

Already operating at about two-thirds of capacity,energy-intensive aluminum smelting plants in the Pacific Northwestare facing further cutbacks and plant closings because of highpower prices that have some of the operators looking at developingtheir own natural gas-fired generators. At risk are five companiesand ten smelting plants.

Already operating at about two-thirds of capacity,energy-intensive aluminum smelting plants in the Pacific Northwestare facing further cutbacks and plant closings because of highpower prices that have some of the operators looking at developingtheir own natural gas-fired generators. At risk are five companiesand ten smelting plants.

Pacific Gas & Electric did not extend a systemwidehigh-inventory OFO (see Daily GPI, Oct. 23) beyond Saturday.

Sonat lifted Saturday an OFO Type 1 and force majeure associatedwith a shut-in test of its Bear Creek (LA) Storage Facility. BearCreek’s injection/withdrawal capacity was restored to 100%.