South

Northwest reported that because it has been unable to deliverspec quality gas off the south end due to increased hydrocarbondewpoint levels, starting today it will be required to shut in sixinterconnect points: Piceance Quick Cycle, Grand Valley, SandSprings, Grand Gas, Premier-Bar-X and Bar-X. The pipeline said itwould contact each affected interconnect operator to discuss gasquality details.

Koch Gateway began scheduled maintenance Monday on its SouthHenderson Line (FPL 3) in East Texas. The work, which is expectedto last 10 days, is causing shut-ins at 14 points, butaffectedshippers are being kept whole on the delivery side.

Reporting that linepack was heavy on its south end, Northwestsaid Monday no on-system balancing and limited off-system balancingis being allowed in that segment.

Forcenergy Inc. reported a blowout yesterday on an exploratorywell at West Cameron Block 317, located 65 miles south of LakeCharles, LA, in the Gulf of Mexico. The blowout occurred duringcompletion operations, but it has not ignited. All personnel havebeen safely evacuated from the Marine Drilling Rig No. 4.Forcenergy has notified all of the proper governmental authoritiesand is cooperating fully with each respective agency.

American Electric Power (AEP) and Central and South West Corp.(CSW) moved one step closer to becoming the largest electricutility last week when FERC approved the $6 billion marriage of thetwo electric powerhouses. It imposed some conditions on the mergerdeal, but the companies said they weren’t anything they couldn’tlive with.

The gains made earlier this week were not sustained yesterday asmost points on GPI’s Daily survey lost between a couple cents and adime. Spot points in the Midcontinent, California and the Rockieswere the exception, however, as most registered flat to decreasesof just a penny or two; some even managed small increases.

The $6 billion marriage of American Electric Power (AEP) andCentral and South West Corp. (CSW) got the go-ahead from FERCyesterday, but not before the Commission placed some conditions onthe transaction.

NGPL deliveries today to the South Joliet (Will County, IL)interconnect with ANR will be limited due to ANR maintenance. SomeFTS secondary services are at risk of not being scheduled, NGPLsaid.

A $9.5 million deep-drilling project in California’s oil-gassaturated south San Joaquin Valley, dubbed Project Ekho, began itsfirst test drilling Monday at a site 40 miles northwest ofBakersfield, shooting for a depth of 19,500 feet where itsindependent backers calculate there could be the beginning of somesubstantial new oil and gas supplies, according toBakersfield-based Tri-Valley Oil & Gas Co., operator of theproject, which has numerous Canadian backers.