Message-ID: <362959.1075844049684.JavaMail.evans@thyme> Date: Mon, 23 Oct 2000 05:56:00 -0700 (PDT) From: lorna.brennan@enron.com To: julie.mccoy@enron.com, steve.klimesh@enron.com, gary.sova@enron.com, rob.wilson@enron.com, lon.stanton@enron.com, david.marye@enron.com, courtney.barker@enron.com, sarabeth.smith@enron.com, keith.petersen@enron.com, michele.winckowski@enron.com, donna.martens@enron.com, josie.call@enron.com, bret.fritch@enron.com, donald.vignaroli@enron.com, margaret.carson@enron.com, danny.mccarty@enron.com, roger.westfall@enron.com, steve.thomas@enron.com, doug.aschwege@enron.com, judy.beck@enron.com, ken.anderson@enron.com, bryan.reinecke@enron.com, robert.johnson@enron.com, carolyn.descoteaux@enron.com, becki.souci@enron.com, gary.choquette@enron.com, ld.stephens@enron.com, john.goodpasture@enron.com, michael.ratner@enron.com, sebastian.corbacho@enron.com, yuan.tian@enron.com, rockey.storie@enron.com, kent.miller@enron.com, john.dushinske@enron.com, dave.neubauer@enron.com, bill.fowler@enron.com, michael.bodnar@enron.com, joni.bollinger@enron.com, david.badura@enron.com, janet.bowers@enron.com, craig.buehler@enron.com, bob.burleson@enron.com, allen.cohrs@enron.com, john.fiscus@enron.com, steve.gilbert@enron.com, morgan.gottsponer@enron.com, stephen.herber@enron.com, dana.jones@enron.com, stephanie.korbelik@enron.com, bill.mangels@enron.com, penny.mccarran@enron.com, vernon.mercaldo@enron.com, larry.pavlou@enron.com, eileen.peebles@enron.com, tony.perry@enron.com, loren.penkava@enron.com, ken.powers@enron.com, chris.sebesta@enron.com, frank.semin@enron.com, neal.shaw@enron.com, larry.swett@enron.com, kay.threet@enron.com, mike.ullom@enron.com, lisa.valley@enron.com, chuck.wilkinson@enron.com, jim.wiltfong@enron.com, jo.williams@enron.com, karen.lagerstrom@enron.com, bob.stevens@enron.com, sue.neville@enron.com, mike.barry@enron.com, martha.janousek@enron.com, kimberly.watson@enron.com, don.powell@enron.com, steve.weller@enron.com, michael.stage@enron.com, tim.johanson@enron.com, laura.lantefield@enron.com, frank.oldenhuis@enron.com, jeff.nielsen@enron.com, tracy.schwartzkopf@enron.com, robert.mason@enron.com, sean.bolks@enron.com, miriam.martinez@enron.com, lee.ferrell@enron.com, john.williams@enron.com, reyna.cabrera@enron.com, theresa.branney@enron.com, lynn.blair@enron.com, rick.dietz@enron.com, steven.january@enron.com, sheila.nacey@enron.com, donna.scott@enron.com, dari.dornan@enron.com, maria.pavlou@enron.com, jim.talcott@enron.com, mary.miller@enron.com, michel.nelson@enron.com, mike.mcgowan@enron.com, julia.white@enron.com, drew.fossum@enron.com, glen.hass@enron.com, mary.darveaux@enron.com, rita.bianchi@enron.com, ranelle.paladino@enron.com, patrick.brennan@enron.com, tim.kissner@enron.com, shelley.corman@enron.com, steven.harris@enron.com, jeffery.fawcett@enron.com, lorraine.lindberg@enron.com, kevin.hyatt@enron.com, christine.stokes@enron.com, tk.lohman@enron.com, michelle.lokay@enron.com, lindy.donoho@enron.com Subject: Alliance Announces Another Delay until November 13 Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Lorna Brennan X-To: Julie McCoy, Steve Klimesh, Gary Sova, Rob Wilson, Lon Stanton, David Marye, Courtney Barker, Sarabeth Smith, Keith Petersen, Michele Winckowski, Donna Martens, Josie Call, Bret Fritch, Donald Vignaroli, Margaret Carson, Danny McCarty, Roger Westfall, Steve Thomas, Doug Aschwege, Judy Beck, Ken Anderson, Bryan Reinecke, Robert L Johnson, Carolyn DesCoteaux, Becki Sans Souci, Gary Choquette, LD Stephens, John Goodpasture, Michael Ratner, Sebastian Corbacho, Yuan Tian, Rockey Storie, Kent Miller, John Dushinske, Dave Neubauer, Bill Fowler, Michael Bodnar, Joni Bollinger, David Badura, Janet Bowers, Craig Buehler, Bob Burleson, Allen Cohrs, John Fiscus, Steve Gilbert, Morgan Gottsponer, Stephen Herber, Dana Jones, Stephanie Korbelik, Bill Mangels, Penny McCarran, Vernon Mercaldo, Larry Pavlou, Eileen Peebles, Tony Perry, Loren Penkava, Ken Powers, Chris Sebesta, Frank Semin, Neal Shaw, Larry Swett, Kay Threet, Mike Ullom, Lisa Valley, Chuck Wilkinson, Jim Wiltfong, Jo Williams, Karen Lagerstrom, Bob Stevens, Sue M Neville, Mike Barry, Martha Janousek, Kimberly Watson, Don Powell, Steve Weller, Michael G Stage, Tim Johanson, Laura Lantefield, Frank Oldenhuis, Jeff Nielsen, Tracy Schwartzkopf, Robert Mason, Sean Bolks, Miriam Martinez, Lee Ferrell, John Williams, Reyna Cabrera, Theresa Branney, Lynn Blair, Rick Dietz, Steven January, Sheila Nacey, Donna Scott, Dari Dornan, Maria Pavlou, Jim Talcott, Mary Kay Miller, Michel Nelson, Mike McGowan, Julia White, Drew Fossum, Glen Hass, Mary Darveaux, Rita Bianchi, Ranelle Paladino, Patrick Brennan, Tim Kissner, Shelley Corman, Steven Harris, Jeffery Fawcett, Lorraine Lindberg, Kevin Hyatt, Christine Stokes, TK Lohman, Michelle Lokay, Lindy Donoho X-cc: X-bcc: X-Folder: \Michelle_Lokay_Dec2000_June2001_1\Notes Folders\Articles X-Origin: LOKAY-M X-FileName: mlokay.nsf Alliance Deliveries Delayed until Nov. 13 In a move that is likely to send ripples through the market, particularly around Chicago, the 1.325 Bcf/d Alliance Pipeline extended its commercial in-service delay last week to Nov. 13 from Oct. 30. Pipeline officials said moisture and debris in the line caused the delay. "As we have increased the flow of test gas volumes during our system commissioning, we have encountered moisture and debris from construction," said CEO Norm Gish. "Specifically, most of the debris is in the form of small pieces of foam from the [smart] pigs that were used to remove the hydrostatic testing water from the line. The problem forced us to shut down the system for short periods of time to clean out accumulated debris. "We have since designed and installed additional in-line screens at our compressor stations. The situation is improving and we are removing ever-decreasing amounts of debris with increased flows of test gas. However, this situation has not permitted us to run our system with the significant volumes necessary to adequately test the reliability of our compressors." It is the second time Alliance has had to delay its in-service date. In early September, Alliance officials said rain in Saskatchewan this summer, directional drilling problems at a creek in British Columbia, complex connection problems with the Aux Sable liquids plant in Illinois and connection delays with several U.S. pipelines and LDCs was to blame for a one-month delay to Oct. 30 (see Daily GPI, Sept. 11). The pipeline will continue increasing test volumes until it begins commercial service, said Gish. There currently is about 500 MMcf/d of test gas in the line. He expects firm delivery capacity to reach the full 1.325 Bcf/d prior to Nov. 13. Alliance officials also noted that this is the first time a pipeline the size of Alliance has been brought on stream at one time. Regardless of the challenge, however, market participants were expecting the system to be delivering gas starting at the beginning of the month of November and this delay is likely to have a significant impact on November bidweek trading. One Chicago trader said he had a strong suspicion something was fishy when his index offers were lifted Friday afternoon by a marketing company, which he knows to own capacity on the pipe. "Everyone was a buyer of index gas today for November, especially those now short for the first 13 days. I sold mine at NGI plus 1.5, but had I known that Alliance was delayed I would have held out for something a little better." Basis, meanwhile, was pretty much unchanged at +13 to +14 for November. "It takes a lot to move the Chicago basis," he said.