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It appears the Guardian Pipeline project received what it wantedfor the holidays after all, even though it came a week or two late.The pipeline cleared one of the larger regulatory hurdles, as theFederal Energy Regulatory Commission (FERC) staff issued a FinalEnvironmental Impact Statement (EIS) on the project, deeming theconstruction and operation of the 149-mile natural gas pipelinefrom Joliet, IL, to Ixonia, WI, an acceptable environmental action.

It appears the Guardian Pipeline project received what it wantedfor the holidays afterall, even though it came a week or two late.The pipeline announced yesterday that it has cleared one of thelarger regulatory hurdles, as the Federal Energy RegulatoryCommission (FERC) Staff issued a Final Environmental ImpactStatement (EIS) on the project, deeming the construction andoperation of the 149-mile natural gas pipeline from Joliet, IL, toIxonia, WI, as an acceptable environmental action.

Cash prices continued to leap higher Tuesday even though futurestraders decided it was time for major retrenchment. Gains were indouble digits at almost all points, but tended to range from littlemore than a dime on Rockies pipes and in El Paso’s Permian and SanJuan Basin pools to around 50 cents or more in capacity-constrainedCalifornia.

The numbers, it seems, don’t tell the entire story. Even thoughoil and gas industry upstream revenues, profits and cash flow areshowing record profits for 1999 compared with the previous year’scollapse, exploration and development spending dropped and provedreserves spending rose significantly, according to ArthurAndersen’s 21st annual Global E&P Trends survey.

The numbers, it seems, don’t tell the entire story. Even thoughoil and gas industry upstream revenues, profits and cash flow areshowing record profits for 1999 compared with the previous year’scollapse, exploration and development spending dropped and provedreserves spending rose significantly, according to ArthurAndersen’s 21st annual Global E&P Trends survey.

After spending more than C$60 million (US$41 million) and threeyears of preliminary work, the sponsors of the upstream portion ofthe Millennium Pipeline Project have decided to put the regulatoryreview process in Canada on indefinite hold.

It looks as though Millennium Pipeline’s long wait for a FERC ruling is going to last a little longer. Instead of getting a speedy Final Environmental Impact Statement (FEIS), the pipeline must wait until FERC can examine its proposed route change in New York, Daniel M. Adamson, director of the Office of Energy Projects, told project sponsors.

Though the May Henry Hub futures contract eventually settled fora small gain of less than a penny, it was the screen’s morningflirtation with the $2.15-17 area that got most of the credit for astrong performance Tuesday by the cash market. Cash rises tended tofade out going westward to virtually nothing in California trading,but virtually all eastern points were up at least a nickel and inmany cases saw increases approaching a dime.

Even though construction of the intrastate Front Range Pipelinealready is in progress and work on the Front Runner Pipeline isexpected to start “fairly soon,” the sponsors have disclosed thatthey are continuing discussions to possibly combine the two rivalprojects into a single pipeline to serve the growing Colorado gasmarket.