Situation

An “absolutely incredible” 9 to 12 Bcf/d reduction in naturalgas demand over the last six weeks, led by industrial users whohave either switched or shut down production, has been the primemover in the recent decline in storage withdrawals, according to areport by Raymond James Energy analysts. A continued rout ofindustrials could bring with it a significant reduction in overallindustrial output and a recession.

El Paso declared an Unauthorized Overpull Penalty situationSunday. It is effective until further notice.

El Paso declared an Unauthorized Overpull Penalty situationTuesday and said it will limit scheduled volumes at underperforminginterconnects to preserve system integrity. The pipeline alsopostponed pigging of Line 3201 in San Juan Basin (see Daily GPI,Dec. 19) by one more day to Dec. 28.

El Paso continued its unauthorized overpull penalty situationyesterday in the San Juan Basin (see Daily GPI, Nov. 9).

Regardless of who wins this week’s presidential election, SanDiego-based Sempra Energy advocates an expanded national energypolicy and development of sufficient pipeline upgrades to ensurethat the nation’s gas infrastructure can support all of the newnatural gas-fired electric generating plants that are underconstruction or in development throughout the nation.

El Paso declared an Unauthorized Overpull Penalty situationThursday that will remain in effect until further notice. Thepipeline said it will limit scheduled volumes at underperforminginterconnects to insure system integrity.

In the midst of much uncertainty surrounding California’s powersituation, Duke Energy North America Monday reiterated itscommitment to the state’s struggling wholesale electricity market,announcing new bilateral power deals with Pacific Gas and ElectricCo. and progress with redevelopment plans at three coastal powerplant sites it is operating.

Saying linepack was stabilized, El Paso canceled Thursday anUnauthorized Overpull Penalty situation that had been implementedTuesday.

El Paso Natural Gas declared an Unauthorized Overpull Penaltysituation Sunday following an explosion Saturday morning on its1100 Line on the suction side of the Pecos River Station south ofCarlsbad, NM (see related stories in this issue). The OFO wasextended through Monday and will remain effective until furthernotice. Washington Ranch Storage Field, downstream of the rupture,was experiencing maximum withdrawals, the pipeline said. AffiliateEl Paso Field Services shut in its Carlsbad gathering system untilfurther notice because EPNG was physically unable to acceptreceipts there.