Tennessee Gas maintained an operational flow order for Wednesday due to nominations in excess of available capacity in Zone 0 and at Niagara. It placed restrictions on deliveries to Station 40 and at its Niagara River Meter. Tennessee also said it will not accept any increases pathed through MLV 528, excluding the header on the Bluewater system and the TTT line 523M-2300 from Eugene Island 365 to Ship Shoal 198. It restricted flow through Station 834. For details see its pipeline bulletin board. Tennessee also confirmed leaks on its 26-inch diameter pipeline at Ship Shoal 157 and Ship Shoal 144. Divers are assessing the damage. Its mainline valve 528 remains shut in due to water at the Port Sulphur Compressor Station (Station 527). It also incurred damage in the South Timbalier area on several lines (524J-100, 524J-600, and 524J-800) and has leaks on the 524C-100 line and the 524C-600 line. Tennessee said it has survey boats inspecting the West Delta, South Pass, and Main Pass areas. It determined that the meters on the Blue Water Header (from Vermillion 245 to Ship Shoal 198) as well as the TTT line 523M-2300 (from Eugene Island 365 to Ship Shoal 198) are available and can begin flowing. The east leg of the Blue Water system remains shut-in. Therefore, gas that would typically be processed at the Yscloskey processing plant will now be flowing on the Blue Water header in a westerly direction and will require processing at the Blue Water Plant. Producers flowing on this portion of the Blue Water system with a hydrocarbon dew point greater than 20 degrees must sign a processing agreement with the Blue Water plant immediately.

Enbridge said no gas was flowing Tuesday into its damaged Mississippi Canyon pipeline offshore. An Enbridge spokeswoman said the Venice processing plant, operated by Dynegy downstream of Mississippi Canyon is covered by water and mud and could be out of service for some time. She said a small amount of dry gas production may be able to bypass the plant if Mississippi Canyon is able to restart. An assessment of the pipeline is ongoing.

As a result of moderate temperatures in much of the Transco market area over the Labor Day holiday weekend and a return of much of the production that was impacted by Hurricane Katrina, Transco received significantly more gas than it delivered over the weekend. Transco’s customers created a significant “due-to-shipper” imbalance. The pipeline said Tuesday it would not accept any due-from-shipper imbalance transactions, effective immediately, until further notice and will restrict the pool scheduling tolerances to 1% effective with the evening nomination cycle for gas day Wednesday, Sept. 7. Transco requested that shippers who currently have a due-to-shipper imbalance make immediate plans to resolve their imbalance. Also, Transco will not allow excess storage injections to be scheduled under any storage services until further notice.

Texas Eastern on Tuesday restricted receipts from production that was shut in due to Hurricane Katrina to ensure physical receipts are commensurate with physical deliveries. Force balanced short TABS-1 pools in ELA. Zones STX, ETX and M1-24 has been sealed to capacity. Physical receipts between Mt Belvieu and Fagus for delivery outside of this area will not be accepted, the company said.

Florida Gas issued had another overage alert day Tuesday but with only a 50% tolerance. Hurricane Katrina caused reductions in receipt volumes into Zone 3 of the FGT system, and 90 degree temperatures are forecasted in Florida for Tuesday, the company said.

Southern Natural said a force majeure remains in place upstream of the Toca compressor station until the integrity of the facilities can be verified. The affected receipt points were flowing about 550 MMcf/day into Southern prior to the hurricane. Southern said it has sustained possibly significant damage to its system but has not yet been able to do a full assessment. Surveys by boat were scheduled to begin on Tuesday.

Kern River posted 94,000 Dth/d of firm 2003 expansion capacity up for bid in three separate packages. The first package is for 77,103 Dth/d. The is for 12,897 Dth/d, and the third package is for 4,000 Dth/d. Contact Candace Karpakis for details (801) 937-6196.

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