Daily GPI

The National Energy Board has put out a new signal that naturalgas supplies will remain tight by cutting in half its growthprojections for western Canadian production capacity after a reviewof recent performance.

As expected, Barrett Resources Corp.’s request for eight waterdischarge permits to operate in the Powder River Basin wereapproved last week by the Wyoming Department of EnvironmentalQuality. But Barrett and other producers operating in the prolificcoalbed methane basin may be holding their breath to see if thepermit approval process slows down following an anticipated statepublic hearing Jan. 3 (see Daily GPI, Nov. 6).

The FPL Group/Entergy Corp. union came another step closer tofinality last week as each company’s shareholders overwhelminglyapproved the merger in separate meetings on Friday. The mergerwould result in one of the largest, strongest and cleanest powercompanies in the nation.

California’s natural gas industry probably shouldn’t expect anyflowers in sympathy anytime soon. The California Cut FlowerCommission said last week that some of the state’s growers havebegun laying off workers and even sacrificing their Valentine’s Daycrops because they can’t afford to heat their greenhouses.

The Department of Interior’s Minerals Management Service (MMS)must carefully examine the option of including promising areas inits new 5-year leasing plan that have been subject to moratoria inthe past, the National Ocean Industries Association (NOIA) said.

As of Friday, Northwest was requiring shippers with primarycorridor rights southbound through Kemmerer (WY) Station to flow upto 25% of their contract demand from receipt points north ofKemmerer. The percentage under a “must-flow OFO” was increased from15% previously (see Daily GPI, Nov. 20).

Cinergy Capital & Trading, Inc. said it may build fourgas-fired generating units at an industrial park in Martinsville,VA, and add to the gas pipeline infrastructure there to support theplant and the gas needs of the surrounding area.

Duke Energy Field Services (DEFS) completed an expansion at itsRoggen gas processing plant northeast of Denver, CO. The expansionmore than doubles the plant’s capacity to 58 MMcf/d, increasingproducer capabilities to develop additional gas reserves ingas-rich Weld County and easing processing constraints in the area.

The Minerals Management Service (MMS) is starting to prepare fora new five-year Outer Continental Shelf oil and gas leasing programto run from 2002-2007. The agency has asked for input frominterested and affected parties.