Williams’ Kern River Pipeline has taken action to ensure itscontinued control over market access, completing an agreement tobuy-out a future option on the California portion of the line heldby Southern California Gas. The option would have been exercisablein 2012.

The California Public Utilities Commission ordered SoCalGas todivest itself of options it held on Kern River and Mojave pipelinesas a condition for approval of the merger between SoCal Gas’ parentPacific Enterprises and Enova. Williams had argued the merger andthe options would allow creation of a gas transportation monopolyin the state. The options originally had been granted as part ofthe price for allowing construction of the interstate withinCalifornia borders. Kern River began service in 1992.

“Kern River will remain a viable long-term transportationalternative in California. Completion of the option transferensures no third party will be in a position as an owner of theoption to limit Williams’ ability to serve the California gasmarket,” said Mark Moench, senior counsel, Williams GasPipelines-West.

©Copyright 1998 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press,Inc.