Transportation

Transportation Note

Northwest continued Tuesday to ban any on-system balancing,warning that regional temperatures are getting warmer and linepack”is very high.” Shippers were asked to refrain from banking gas onthe system in order to avoid a potential entitlement.

June 3, 1998

FERC Shoots Down Two Midcoast Projects

Midcoast Interstate Transmission’s efforts to continue itsmonopoly control of the pipeline transportation market in northernAlabama fell by the wayside last week when FERC rejected its twocontroversial project proposals citing disinterest on the part ofshippers.

June 2, 1998

Transportation Note

Due to excess supply levels threatening system integrity and aconstraint on storage injections, Sonat implemented an OperationalFlow Order Type 6 effective Saturday. The OFO carries tieredpenalties ranging up to $15/dth for shippers with positive dailyimbalances exceeding allocated volumes by 3% or 200 dekatherms. Forthe same reasons as above, Sonat began a production areapoint-specific OFO Type 5 for nine points on its 26-inch Main PassArea Line. A penalty of $15/dth is involved for affected shippersor poolers exceeding scheduled quantities by 4%. Finally, an OFOType 1 (force majeure notice) began Saturday in connection withSonat’s retirement of facilities at the Main Pass 127 platform,which involved shutting in the Main Pass 129 and Main Pass 129Redelivery points. The work, which originally had been scheduled tostart on Friday, was expected to last 24-48 hours.

June 1, 1998

Transportation Note

Northwest said it would not issue an Operational Flow Order fortoday’s gas day even though repairs to Unit #1 at the Snohomish(WA) Compressor Station were continuing Wednesday. The pipelineexpected to complete the work by Wednesday night, but said an OFOstill might be possible should the maintenance continue throughtoday. Northwest credited cool weather and customer cooperation onbalancing with allowing it to meet demand for Sumas/SIPI gas overthe weekend. But with warming weather and continued high demand itis having difficulty meeting Primary Firm nominations without theSnohomish #1 unit

April 30, 1998

Transportation Note

Pacific Gas & Electric said less than 1,000 of the more than60,000 customers who lost natural gas service last week in SantaCruz County, CA, were still without service Monday. A massivelandslide Wednesday had ruptured two main transmission pipelinesserving the county, which is southwest of San Jose. More than 600PG&E workers and another 190 from Southern California Gasworked thoughout the weekend to restore service. Facilities withhot showers were set up in two towns for those without gas to heatwater. It was PG&E’s largest gas restoration project since the1989 Loma Prieta earthquake caused severe damage to thedistribution system throughout Northern and Central California, thecompany said.

April 28, 1998

Self-Esteem Issues at Enron?

In a two-page mea culpa to shippers, Enron Transportation &Storage (ETS) owned up to seven sins revealed by a recent customersurvey and offered six solutions with the promise of more to come.

April 27, 1998

Market Thumbs Nose at NGC’s Capacity

No one stepped up to take either of the two 593,000 MMBtu/dpackages of El Paso Natural Gas transportation capacity NGC postedfor release over the past 10 days. One package was offered thoughthe end of April and the other through December 1999. Theycomprised 40% of the 1.3 Bcf/d NGC holds on El Paso and 80% of itsaccess to the San Juan Basin under the purchased contracts. NGC’sMike Flinn said market players missed a huge opportunity. One thatNGC isn’t likely to offer again.

April 13, 1998

Puget Sound Energy Expands Natural Gas Territory

Puget Sound Energy (PSE) today received approval from theWashington State Utilities and Transportation Commission (WUTC) tomake natural gas available for the first time to portions ofKittitas County.

March 23, 1998

Transportation Note

Reacting to frigid weather spreading into the Southeast, Sonatis implementing an Operational Flow Order Type 3 effective todayfor four groups: Birmingham Group, South Main Zone 2, South MainZone 3 and Brunswick Line. The OFO will be extended Wednesday tothe East of Wrens and Savannah Line groups. Due to compressorproblems, Sonat said, the level of interruptible service in the twoSouth Main zones will be less than normal in limitation periods. Inaddition, an OFO Type 22 notice to become effective Wednesday forseven groups was issued by Sonat affiliate South Georgia NaturalGas.

March 10, 1998

Transportation Note

Transwestern said its La Plata compressor station will be downthrough Thursday, March 5, for construction. There will be zerovolumes flowing from the Ignacio area to the Blanco Hub.Interconnects affected are NWPL-La Plata, WFS Ignacio Plant, andAmoco Florida River Plant. Capacity from the Blanco Hub to Thoreauwill remain at 800,000 MMcf/d. The same scenario also will applyMarch 28 through 31, Transwestern said.

March 4, 1998