Through

Natural gas futures continued lower yesterday and were able tobreak through a key support level. The June contract finished 4.5cents lower at $2.191 after mapping out a $2.17 low for the day.

Follow-through on the heels of Monday’s Nymex strength gave bulltraders an optimistic outlook early yesterday. However, theireuphoria was short-lived when a combination of fund and localselling pushed the market down near stubborn support at $2.205.June trimmed its losses into the close, finishing 6.6 cents lowerat $2.236.

DuPont is planning a stock split-off to establish Conoco as afully independent company. The split off would be achieved throughan exchange offer providing DuPont stockholders the opportunity toexchange, on a tax-free basis, shares of DuPont common stock forshares of Conoco Class B common stock currently held by DuPont. Theexchange offer is subject to approval by the SEC and acceptablemarket conditions. It is expected the exchange offer will becompleted in the third quarter.

There will be zero flow through Finney County (KS) Station April21-22 during maintenance on the station’s Unit #4, Northern NaturalGas said. It estimated 13,000 MMbtu/d will be affected. About150,000 MMbtu/d will be affected at Spraberry Compressor Station inWest Texas during a one-day emergency shutdown test and changeoutof valves May 3.

Williams yesterday said it is holding an open season throughJune 1 for annual firm service to be created by Transco’s SundanceExpansion Project. The expansion is intended to serve growing powergeneration, residential and commercial gas markets in thesoutheastern United States and is proposed to be in service byApril 2002. Sundance would expand the Transco system from Station65 in Louisiana to Station 165 in Virginia.

Replacement of its A-Line north of Stanfield, OR, is keepingKingsgate capacity of PG&E GT-NW limited to 2,250 MMcf/d-370MMcf/d under the April norm-through Friday. Hydrostatic testing ofthe line at Station 6-A will further limit Kinggate to 2,190 MMcf/dApril 19-22.

El Paso’s Caprock (NM) Station is down for emergency maintenancethat began Tuesday and will last at least through March 31. Afterthat point one of the two compressor units should be available, thepipeline said. San Juan Crossover capacity is being limited toabout 550 MMcf/d. El Paso encouraged shippers to use theTranswestern interconnect at Window Rock (AZ) to maximize flowsfrom San Juan Basin.

While making clear the administration would not be engaging inany market-rigging through price ceilings or floors, EnergySecretary Bill Richardson said it nevertheless was working onfurther measures to aid the depressed oil and gas industry.

Adding insult to injury for gas producers suffering through awarm winter, reports from the Bonneville Power Administration (BPA)and California’s Department of Water Resources indicate the PacificNorthwest’s snow pack is thicker than normal, meaning hydropower isprimed for another productive year.