Transportation Notes

Projecting that linepack would slip below its minimum target level through 
Thursday, Pacific Gas & Electric issued a systemwide Stage 3 OFO, effective 
today until further notice. The order carries penalties of $5/Dth for 
negative daily imbalances exceeding a 3% tolerance. 

As a result of warmer area weather and banking on its system, Northwest said 
it is operationally feasible to loosen conditions of its entitlement for 
delivery points north of Kemmerer (WY) Station. A Declared Stage II (8% 
tolerance) Overrun Entitlement will take effect today; through Tuesday the 
pipeline was in a Stage I (3%) Entitlement. A shipper is subject to penalties 
for overtakes north of Kemmerer that exceed an amount 8% greater than its 
confirmed nominations. 

El Paso will take the B turbine at Cornudas Station in West Texas down for 
maintenance today and Thursday, reducing South Mainline capacity there by 60 
MMcf/d. However, Cornudas capacity has not been fully utilized recently, the 
pipeline said, so this reduction should not affect current markets. 

The Kinder Morgan pipeline group (NGPL, Kinder Morgan Interstate, 
Trailblazer, Canyon Creek, KN Wattenburg and TransColorado) reminded shippers 
it has a new 24-hour hotline phone number for information and questions about 
point confirmations and related issues: (713) 369-9683. The old hotline will 
stay in service through Dec. 31, but callers will hear a recording giving the 
new number. The current number for nomination-related issues, (713) 369-9670, 
is not changing, Kinder Morgan said.