Subject: tw bullets 12 / 22
cal border backhaul - operational linepack , slightly reduced demand at the
cal border , and california ldc ' s returning imbalance gas , all combined to
create an excess gas inventory position at the border for tw . we then
received a shipper request to backhaul some volume to southwest gas at las
vegas . the inventory position necessitated that tw sell some of the gas for
the backhaul and we negotiated a pg this resulted in
delivery cuts to pnm who then canvassed the market to look for alternate
supply . late tuesday morning pnm called asking about park n ride capability
on tw . we negotiated a $ . 45 rate for 20 , 000 mmbtu for one day ( $ 9 , 000 ) .
because the rate was above max , we had to file the deal with ferc . this was
exacerbated by the fact that because of the customer ' s request for service ,
we had to ask ferc for a waiver on the " one day prior notice " requirement .
ferc california pricing - ferc staff members continue to call for help in
understanding transport and commodity prices for gas at the cal border . news
to us was the fact that ferc has access to enrononline but did not understand
how to use it . they are also getting a subscription to gas daily .
capacity west - on thursday 12 / 21 we did a one day posting for an additional
10 , 000 mmbtu / d of lft capacity for january from san juan to cal border . the
current january spread to needles is $ 5 . 40 net of fuel .
southwest gas - we met with swg management last week to discuss the service
being provided by tw at their new interconnect . so far everything is working
well , however , swg is attempting to maximize their flexibility under the oba
agreement and their ability to take swing gas from tw . our response has been
we will continue to help them when we can within operational limits but we
cannot jeopardize the rest of the tw west system . swg indicated they would
like more information regarding our mainline expansion project ; they recently
purchased 85 , 000 mmbtu / d of capacity on the kern river system .
pogo producing - pogo would like to flow gas to tw ' s west texas lateral by
february 1 . they estimate volume of 20 , 000 mmbtu / d and have no qualm on the
approximately $ 400 , 000 interconnect cost . this is a new well near the
recently connected eog well .