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Responding to a California power market gone haywire and teetering on the brink of operational and financial disaster, FERC Friday issued a series of remedial measures, virtually stripping the Cal-PX and Cal-ISO of their control of the market and calling market stakeholders together to negotiate bilateral forward contracts.

As expected, Barrett Resources Corp.’s request for eight water discharge permits to operate in the Powder River Basin were approved last week by the Wyoming Department of Environmental Quality. But Barrett and other producers operating in the prolific coalbed methane basin may be holding their breath to see if the permit approval process slows down following an anticipated state public hearing Jan. 3 (see NGI, Nov. 6, Dec. 11).

FERC approved Northern Border Pipeline Co.’s rate settlement,which converts the pipeline’s rate design to straight-fixedvariable from cost of service and which imposes a moratorium onrate changes until Nov. 1, 2005.

Atlanta Gas Light Co. has implemented a seasonal rate plan timedto roll out during its February 2001 billing cycle by its naturalgas marketers. The plan, approved by the Georgia Public ServiceCommission, would make billing follow traditional winter and summerusage patterns.

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.

MRT is lifting today a System Protection Warning that had beenimplemented Tuesday (see Daily GPI, Dec. 12).

The cash market both calmed down and went further down in mostcases in Thursday’s activity. A majority of points ranged from flatto about 30 cents lower. The notable exceptions were declines ofabout 40 cents or more in California and Transco/Texas Easterncitygates in the Northeast, and on the opposite side of the coinwere gains in the Pacific Northwest and on some Rockies pipes.