Washington

El Paso reported Friday its system integrity was threatened byhigh linepack and it was making maximum injections at theWashington Ranch storage facility. The pipeline said it had imposedcustody limits at delivery points that are not taking scheduledquantities, and if necessary will limit overdeliveries at receiptpoints.

A federal appeals court in Washington D.C. has dismissedchallenges by California regulators and other petitioners to FERC’sapproval of the the controversial contract arrangement that awardedDynegy Marketing and Trade more than 1 Bcf of turned-back capacityon El Paso Natural Gas.

A federal appeals court in Washington, DC last Friday dismissedclaims by California regulators and other petitioners that FERC”abused its discretion and acted arbitrarily” when it approved thecontroversial contract arrangement that awarded Dynegy Marketingand Trade more than 1 Bcf of turned-back capacity on El PasoNatural Gas.

A federal appeals court in Washington D.C. has ordered theDepartment of Interior to repay ExxonMobil and USX-Marathon Group’sMarathon Oil Co. $78 million each for reneging on oil and gas leaseagreements the companies signed in 1981 to drill off the coast ofNorth Carolina.

Southern California Edison’s petition asking a federal appealscourt in Washington, D.C. to force FERC to reinstitutecost-of-service rates for electricity sales in the Californiamarket is impracticable, legally indefensible and not in thepublic’s best interest, the Commission said.

A federal appeals court in Washington, D.C. last week orderedthe Department of Interior to repay ExxonMobil and USX-MarathonGroup’s Marathon Oil Co. $78 million each for reneging on leaseagreements the companies signed in 1981 to drill off the coast ofNorth Carolina.

As the battle over how best to solve California’s electricitywoes bounces around the regulatory and political halls inCalifornia and Washington, DC, an immovable stumbling block thatcan’t be fixed by new legislation or regulatory decisions is anoverworked electricity highway called “Path 15.”

Making himself a domestic energy diplomat moving betweenmeetings in Washington, DC, and the West, Energy Secretary BillRichardson last week supported the need for a western regionalwholesale power price cap as he extended for another week hisearlier emergency order requiring generators and marketers to makepower available to the continuing tight California market to avoidthe threat of rolling blackouts. The order, which was first issuedon Dec. 14, expired Tuesday at midnight. The new order will remainin effect until Dec. 27, unless modified.

With the Supreme Court decision in effect handing the presidencyto Texas Gov. George W. Bush, speculation has escalated inWashington D.C. over who will be named the next FERC chairman undera Republican administration.