Status

Once relegated to auction block status, Kinder Morgan’s MidConTexas Pipeline (MTP) continued its revival last week by renewingits gas sales and transportation contract with Reliant EnergyHL&P through March 1, 2004. Additionally, MTP has entered intoa new transportation services agreement with Reliant EnergyHL&P beginning in 2002 and extending through 2012.

Pacific Gas & Electric said Friday it was working to resolveproblems with the OFO/EFO Outlook and System Inventory Status linkson its Pipe Ranger web site, hoping to restore them to operationSunday. Meanwhile, the utility assured shippers that no OFO hadbeen called for Saturday.

Even having achieved hurricane status, Irene proved to have nomore “hype” for gas prices left in it. Cash quotes Thursday fell adime or more at most eastern points and a little bit less in theWest. Gulf Coast numbers tended to drop a nickel or so from theirearly morning highs, one trader said. That resulted in the anomalyof him getting identical $2.67 pricing for an early sale inTennessee Zone 0 (South Texas) and a late sale at Transco Station65 (South Louisiana).

As Tropical Storm Bret was downgraded from hurricane statusMonday, offshore producers in the western region of the Gulf ofMexico breathed a major sigh of relief. Their personnel andplatform facilities had completely escaped Bret’s wrath over theweekend, with producers reporting no damages and only nominalvolumes of shut-in production.

Hoping to solidify the project’s shaky environmental status, Independence Pipeline Co., working with the Ohio Power Siting Board (OPSB), voluntarily agreed to a set of standards intended to protect Ohio’s environment from the construction and operation of the pipeline. The agreement, which was signed by the OPSB in early June, has been forwarded to the Federal Energy Regulatory Commission (FERC) for consideration.

Hoping to solidify the project’s shaky environmental status,Independence Pipeline Co., working with the Ohio Power Siting Board(OPSB), voluntarily agreed to a set of standards last week intendedto protect Ohio’s environment from the construction and operationof the pipeline. The agreement, which was signed by the OPSB inearly June, has been forwarded to the Federal Energy RegulatoryCommission (FERC) for consideration.

Burgeoning gas demand in the southeastern United States andChicago’s supply hub status have spawned another pipeline project.The latest comes from Columbia Gulf Transmission, AGL Resources,and MCN Energy Group. The trio last week began a six-week openseason offering up to 250,000 Dth/d of capacity on the proposedVolunteer Pipeline.

Despite achieving named tropical storm status Wednesdayafternoon, Frances was unable to avert a slight softening of cashprices. Several Gulf Coast pipelines were losing supplies toshut-ins, but the volumes were on a significantly smaller scalethan those attributed to Hurricane Earl last week.

The currently one-member Wisconsin Public Service Commission issoon to be restored to full three-commissioner status. Thecommission has been down to one member, Joe Mettner, since May 15when Chair Cheryl L. Parrino stepped down. Previously, Dan Eastmanleft his commission post April 30.