![](media/image1.jpeg){width="8.5in" height="3.5027777777777778in"}U.S.
DEPARTMENT OF ENERGY

**Office of Electricity Delivery and\
Energy Reliability**

**ENERGY ASSURANCE DAILY**

**September 6, 2005**

## Highlights/Major Developments

**Update: Hurricane Katrina**

OFFICE OF ELECTRICITY DELIVERY AND ENERGY RELIABILITY (OE)

U.S. DEPARTMENT OF ENERGY

Hurricane Katrina Situation Report #24

**September 6, 2005 (6:00 PM EDT)**

######### HIGHLIGHTS

Less than 858,758 customers remain without electric power due to
Hurricane Katrina in Louisiana and Mississippi. This is down by more
than 1.8 million from a peak of about 2.7 million customers that were
without power after Hurricane Katrina struck the region.

DOE has announced the intent to sell 30 million barrels of crude oil
from the Strategic Petroleum Reserve.  Offers from interested bidders
are due by Friday, September 9; depending on the bids, the amount of oil
actually sold could be more or less than 30 million barrels.  The
delivery date of availability of the crude to the winning bidders is
during the month of October, but DOE will release it sooner if a winning
bidder can take possession earlier.

U.S. crude oil futures ended more than \$1 lower today, as oil
production and refinery operations slowly returned from the devastation
wrought by Hurricane Katrina last week.  October crude oil on the New
York Mercantile Exchange settled at \$65.96 a barrel, down \$1.61 from
Friday\'s close.

DOE continues to work with the FEMA HQ Fuel Task Force to examine and
mitigate emergency fuel supply issues. Currently there are no major
issues in supplying fuel to first responders.

The LOOP reports that it has two of its three berths open, which allows
dual discharging while also eliminating the turnaround time between
pumping sessions.  The LOOP is currently operating at about 75% of its
maximum.  Entergy expects to have the LOOP's tank facility power back
today, which will allow LOOP to access the special crudes. Outbound
deliveries are resuming with the exception of a few large refineries
located in the New Orleans area. Entergy is working with GE to obtain a
22 MW generator to provide power to the Fourchon Booster Station. 
Operations may return to normal by this weekend. Seven ships are
awaiting entrance into LOOP.  Outbound deliveries are resuming with the
exception of a few large refineries located in the New Orleans area.

**PETROLEUM AND GAS INFORMATION**

According to Tuesday's MMS reports, 23.4 percent of the 819 manned
platforms and 20.2 percent of the 137 rigs are evacuated in the Gulf of
Mexico (GOM). Yesterday's shut-in oil production was 870,374 BOPD. The
shut-in oil production is equivalent to 58 percent of the daily oil
production in the GOM, which is currently approximately 1.5 million
BOPD. This represents a 9 percent improvement from yesterday's figures.
Monday's shut-in gas production was 4.160 BCFPD. This shut-in gas
production is equivalent to 41.60 percent of the daily gas production in
the GOM, which is currently approximately 10 BCFPD. This represents an11
percent improvement from the previous day's figures.

There has been significant reduction in the amount of GOM oil and gas
shut-in over the past week and in particular over the past 4 days. See
table below.

> **Improvement in GOM Shut-in Oil and Gas Over the Past Week**

  ----------------- -------------------------- --------------------------
  **Date**          **Percent of GOM Oil       **Percent of GOM Gas
                    Shut-in**                  Shut-in**

  August 30         95.2%                      87.99%

  August 31         91.45%                     83.46%

  September 1       90.43%                     78.66%

  September 2       88.53%                     72.48%

  September 3       78.98%                     57.80%

  September 4       No data reported           

  September 5       69.57%                     54.13%

  September 6       58.02%                     41.06%
  ----------------- -------------------------- --------------------------

As of 9:00 PM 9/5, at least 55 miles of the Gulf Intracoastal Waterway
were still closed to navigation (from Mile Marker 15 to Mile Marker 70.)
This is in the area between the Lower Mississippi and Gulfport,
Mississippi. The US Coast Guard is surveying the waterway and replacing
navigational aids at a rate of about 20 miles per day. At this rate the
entire waterway should be open between the Lower Mississippi and all
points east by the end of Wednesday. The Port of Gulfport is still
closed and the Port of Pascagoula is only allowing vessels to operate in
the day, if they have draughts of less than 12 feet. Other ports east of
Pascagoula (in AL and FL) are open.

Port of Mobile is operating during daylight hours only with temporary
navigation aids in place. The Mississippi River is now officially open
to ships with a draft of 39 feet during daylight hours. The US Army
Corps of Engineers is currently dredging the channel so that Shell Oil
Company's dock can receive a 40-foot draught crude oil tanker (arriving
in a few days), to traverse channel and safely dock and unload.
Currently the channel to Shell can only take ships with a draught of 38
feet or less.

The Tables below show, as of September 5, the current status of the
refineries impacted by Hurricane Katrina. Refineries in the Midwest are
now receiving crude oil supplies off the Capline pipeline.

# Table 1. Shutdown Refineries

+------------+----------+-----+----------+----------------------------+
| **         | **Lo     | **S | **Ca     | **Current Status**         |
| Refinery** | cation** | tat | pacity** |                            |
|            |          | e** |          |                            |
|            |          |     | **(bb    |                            |
|            |          |     | l/day)** |                            |
+------------+----------+-----+----------+----------------------------+
| Shell      | Saraland | AL  | 80,000   | No information -- unable   |
| Chemical   |          |     |          | to contact                 |
+------------+----------+-----+----------+----------------------------+
| Conoco     | Belle    | LA  | 247,000  | No power - major damage    |
| Phillips\* | Chasse   |     |          |                            |
+------------+----------+-----+----------+----------------------------+
| ExxonMobil | C        | LA  | 187,200  | No power - water damage    |
|            | halmette |     |          |                            |
+------------+----------+-----+----------+----------------------------+
| Marathon   | G        | LA  | 245,000  | Restarting -- will be      |
|            | aryville |     |          | fully operational by the   |
|            |          |     |          | end of today               |
+------------+----------+-----+----------+----------------------------+
| Motiva     | Convent  | LA  | 235,000  | Restarting -- may be fully |
| (Shell)    |          |     |          | operational in a few days  |
+------------+----------+-----+----------+----------------------------+
| Motiva     | Norco    | LA  | 226,500  | Limited damage, continue   |
| (Shell)    |          |     |          | to make repairs - may      |
|            |          |     |          | restart by mid-week        |
+------------+----------+-----+----------+----------------------------+
| Murphy     | Meraux   | LA  | 120,000  | No power -- water is       |
|            |          |     |          | starting to recede,        |
|            |          |     |          | currently making           |
|            |          |     |          | assessment of damage,      |
|            |          |     |          | leaking crude oil tank     |
|            |          |     |          | repaired                   |
+------------+----------+-----+----------+----------------------------+
| Shell      | St Rose  | LA  | 55,000   | No information -- unable   |
| Chemical   |          |     |          | to contact                 |
+------------+----------+-----+----------+----------------------------+
| Valero     | St.      | LA  | 185,000  | Restarting; may take up to |
|            | Charles  |     |          | two weeks to be            |
|            |          |     |          | operational -- unable to   |
|            |          |     |          | contact                    |
+------------+----------+-----+----------+----------------------------+
| Chevr      | Pa       | MS  | 325,000  | Damage unknown --          |
| onTexaco\* | scagoula |     |          | assessment being made      |
+------------+----------+-----+----------+----------------------------+

# Table 2. Refineries with Reduced Runs

+-------------+---------+-----+---------+----------------------------+
| *           | **Loc   | **S | **Cap   | **Current Status**         |
| *Refinery** | ation** | tat | acity** |                            |
|             |         | e** |         |                            |
|             |         |     | **(bbl  |                            |
|             |         |     | /day)** |                            |
+-------------+---------+-----+---------+----------------------------+
| Marathon    | Catle   | KY  | 222,000 | Maintenance; will be at    |
|             | ttsburg |     |         | full capacity by Tuesday   |
|             |         |     |         | morning                    |
+-------------+---------+-----+---------+----------------------------+
| Conoc       | Lake    | LA  | 239,400 | Returning to full rate     |
| oPhillips\* | Charles |     |         |                            |
+-------------+---------+-----+---------+----------------------------+
| E           | Baton   | LA  | 493,500 | Ok -- fully operational,   |
| xxonMobil\* | Rouge   |     |         | receiving SPR              |
+-------------+---------+-----+---------+----------------------------+
| Valero      | Krotz   | LA  | 80,000  | Close to 100 percent;      |
|             | Springs |     |         | fully operational tomorrow |
|             |         |     |         | Expecting full rate by     |
|             |         |     |         | Tuesday -- receiving SPR   |
+-------------+---------+-----+---------+----------------------------+
| Total\*     | Port    | TX  | 211,500 | OK - fully operational,    |
|             | Arthur  |     |         | receiving SPR              |
+-------------+---------+-----+---------+----------------------------+

# 

# Table 3. Refineries at Normal Production

+-------------+---------+-----+---------+-----------------------------+
| *           | **Loc   | **S | **Cap   | **Current Status**          |
| *Refinery** | ation** | tat | acity** |                             |
|             |         | e** |         |                             |
|             |         |     | **(bbl  |                             |
|             |         |     | /day)** |                             |
+-------------+---------+-----+---------+-----------------------------+
| Con         | Wood    | IL  | 306,000 | OK                          |
| ocoPhillips | River   |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| E           | Joliet  | IL  | 238,000 | OK                          |
| xxonMobil\* |         |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| PDV Midwest | Lemont  | IL  | 160,000 | OK                          |
+-------------+---------+-----+---------+-----------------------------+
| Marathon    | R       | IL  | 192,000 | OK                          |
|             | obinson |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| BP          | Whiting | IN  | 410,000 | OK -- receiving SPR         |
+-------------+---------+-----+---------+-----------------------------+
| Citgo\*     | Lake    | LA  | 324,300 | OK                          |
|             | Charles |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| Placid      | Port    | LA  | 48,500  | OK -- receiving SPR         |
| Oil\*       | Allen   |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| Marathon    | Detroit | MI  | 74,000  | OK                          |
+-------------+---------+-----+---------+-----------------------------+
| BP          | Toledo  | OH  | 160,000 | OK -- receiving SPR         |
+-------------+---------+-----+---------+-----------------------------+
| Marathon    | Canton  | OH  | 73,000  | OK                          |
+-------------+---------+-----+---------+-----------------------------+
| Premcor     | Lima    | OH  | 158,400 | OK -- receiving SPR         |
+-------------+---------+-----+---------+-----------------------------+
| Premcor\*   | Memphis | TN  | 180,000 | OK -- receiving SPR         |
+-------------+---------+-----+---------+-----------------------------+
| E           | B       | TX  | 348,500 | OK                          |
| xxonMobil\* | eaumont |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| Motiva      | Port    | TX  | 285,000 | OK                          |
| (Shell)\*   | Arthur  |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+
| Premcor     | Port    | TX  | 247,000 | OK                          |
|             | Arthur  |     |         |                             |
+-------------+---------+-----+---------+-----------------------------+

\* Refineries with company owned and operated on-site power generation.

**ELECTRICITY INFORMATION**

### STATE OUTAGE DATA 

+---------------------+--------------------+---------------------------+
| **Utility**         | **Customers w/o    | **% Customers w/o Power** |
|                     | Power**            |                           |
|                     |                    | **from Katrina**          |
+---------------------+--------------------+---------------------------+
| Louisiana           | 529,105            | 54%                       |
+---------------------+--------------------+---------------------------+
| Mississippi         | 329,653            | 23%                       |
+---------------------+--------------------+---------------------------+

> \*Louisiana data is reported by the Louisiana Public Service
> Commission and their percentage outage numbers are used in calculating
> the percentage of total outage.

**STATE REPORTS**

Mississippi and Louisiana

Louisiana has 529,105 customers remaining without power, as reported by
the Louisiana Public Service Commission (2:00 PM 9/6/05). This
represents about 54 percent of customers in the state. About 414,000 of
these are serviced by Entergy. See table below.

Louisiana Outage Data

  ------------------------------------- ------------- -------------------
  **UTILITY**                           **OUTAGES**   **% customers w/o
                                                      power**

  **Entergy Louisiana**                 216,903       50%

  **Entergy Gulf States**               75            \<1%

  **Entergy New Orleans**               197,749       92%

  **DEMCO**                             2,307         6%

  **SLECA**                             362           2%

  **Wash-St. Tammany**                  43,909        98%

  **CLECO**                             67,800        85%

  **Total**                             **529,105**   **54%**
  ------------------------------------- ------------- -------------------

As of 12:00 PM Tuesday 9/6, Mississippi has 329,653 customers without
power, which represents 23 percent of customers in the state, including
41,358 Entergy customers, 104,000 Mississippi Power customers, and
184,295 Mississippi Electric Power Association customers.

Mississippi Power re-energized several substations on Sunday including
Picayune, Bay St. Louis and Waveland, Richton, Poplarville, Shubuta and
Carriere. Transmission service to substations serving the company's
wholesale rural electric customers continues. The few remaining delivery
points are expected to be completed in the next day or two. Mississippi
Power expects to have nearly 9,200 outside workers overall. The company
reports that it will take months to restore the system to normal but has
released restoration goals for restoring service to customers who can
receive power. These goals include:

September 6: Ocean Springs\
September 7: Leakesville, Lucedale, Meridian, Richton\
September 8: Bay St. Louis, Long Beach, Wiggins/Saucier\
September 9: Pascagoula/Moss Point, Pass Christian, DeLisle\
September 10: Hattiesburg, Laurel\
September 11: Biloxi, Gulfport, Picayune, Poplarville

At 10:00 AM 9/6, Entergy's transmission system had 46 lines and 36
substations out of service. Overall, restoration of the transmission
system is progressing well except in the areas impacted by flood waters
or security issues.

Natural gas utilities from as far away as the Pacific Northwest have
offered their assistance to the affected utilities of Entergy,
CenterPoint, Mobile Gas and Atmos Energy in the Gulf Coast states.
Loaned crews and equipment will be arriving into these areas.

Entergy reports that there has been extensive damage to Entergy's gas
distribution system, which has affected service to many of Entergy's
147,000 natural gas customers in New Orleans. Entergy will have to shut
off gas service in many areas of the New Orleans before repairs can be
made. This will help reduce gas leakage in the city, which will help
with public safety and aid in restoration of the gas system. Natural gas
is critical to operating the water and sewage system pumps, and
hospitals. Work crews will work to cap any broken natural gas mains,
while maintaining gas flow to critical facilities.

######### Florida

The State of Florida reported today that it received a shipment of fuel
at its Pensacola Port. The Port of Pensacola is open to receive tanker
truck deliveries from Mobile, Niceville, Freeport, Bainbridge, and
Jacksonville. Florida officials anticipate it will take several weeks
for supply and demand to stabilize to pre-storm levels.

**Additional Information**

**Hurricane Katrina\
Evacuation and Production Shut-in Statistics Report\
as of Tuesday, September 6, 2005**

Next Report will be issued on Wednesday, September 7, 2005 at 1:00 PM
CDT.\
For information concerning the storm click on
**[www.mms.gov](http://www.mms.gov/)**

**This survey reflects 62 companies' reports as of 11:30 a.m. Central
Daily Time.**

  --------------- ----------- ----------- --------------- ----------- ----------- -----------
  **Districts**   **Lake      **Lake      **Lafayette**   **Houma**   **New       **Total**
                  Jackson**   Charles**                               Orleans**   

  **Platforms     7           18          14              21          132         192
  Evacuated**                                                                     

  **Rigs          0           5           3               9           10          27
  Evacuated**                                                                     

  ** **                                                                            

  **Oil, BOPD     809         21,641      18,743          113,973     715,208     870,374
  Shut-in**                                                                       

  **Gas, MMCF/D   35.40       488.62      110.24          434.32      3,091.71    4,160.29
  Shut-In**                                                                       
  --------------- ----------- ----------- --------------- ----------- ----------- -----------

<http://www.mms.gov/ooc/press/2005/press0906.htm>

These cumulative numbers reflect updated production numbers from all
previous reports.  The reports only represent input received by 11:30
a.m. CDT.  If a company does not report by 11:30 a.m. it is not included
in the special information release, but it is included in the cumulative
shut-in production. This may result in an apparent increase in the
cumulative report amount.

**\$10.5B Katrina Relief Bill Passed by Congress**\
In an emergency session, the U.S. Congress approved a \$10.5 billion
supplemental emergency spending measure to finance the immediate relief
efforts and restoration of infrastructure in Louisiana, Mississippi, and
Alabama. The bill includes funding for energy facility repairs of damage
sustained from Hurricane Katrina.

Source: NGI's Daily Gas Price Index, September 6, 2005

[*http://intelligencepress.com/*](http://intelligencepress.com/)

**Storm Forecast Team Show Additional Hurricanes Likely in Next Two
Months**

Top storm forecasters from the Colorado State University (CSU) hurricane
forecast team, using new methodology for the calculation of onshore
hurricane landfalls, warned last Friday that additional hurricanes might
be likely for September and October in Florida and the Gulf Coast.

Source: NGI's Daily Gas Price Index, September 6, 2005

[*http://intelligencepress.com/*](http://intelligencepress.com/)

######## Electricity

**Calpine Idling 6 Power Plants in Southeast**\
With gas supplies curtailed and transmission lines shutdown, Calpine
shut six power plants in the Southeast. The company indicated that there
was no damage reported at any of the plants. Calpine expects that all of
the plants will quickly return to service once power has been restored
to the transmission lines.
[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp%5E%5BehkhgkoUSfd%27%40%3E%20bfek%5Cv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8knpp^%5BehkhgkoUSfd'@> bfek\v)

<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5924361>

**NERC, Supplies Through 2009, Long-term Less Certain**

The North American Electric Reliability Council estimates that if
current plans for the construction of additional generating facilities
in North America are executed, that generating resources will be
adequate to meet demand through 2009. However, for the longer-term, NERC
warned that unusual weather conditions or unusually heavy maintenance
problems coupled with high peak demand could strain the system in
localized areas and that the longer term through 2014 is less certain.

<http://pro.energycentral.com/professional/news/power/news_article.cfm?id=5927551>

**550 MW of Generation Needed for Connecticut**

In a new report, the Connecticut Energy Advisory Board warned that the
state needs some 550 MW of new generation capacity to ensure system
reliability. The report, Connecticut\'s Electric Supply and Demand: Near
Term Requirements for Reliability and Mitigation of Federally Mandated
Congestion Charges," also calls for new transmission and distributed
generation facilities.

[http://www.platts.com/Electric%20Power/headlines.jsp](http://www.platts.com/Electric Power/headlines.jsp)

# TXU\'s 560 MW Unit 2 at the Big Brown Coal-Fired Power Station in Texas Shut September 6

The unit was shut to repair a leaking inboard seal on the condensate
booster pump, according to a report filed with Texas regulators. The
unit will likely restart on Wednesday.

Reuters 14:39 September 6, 2005

# Update -CMS\' 767 MW Palisades Nuke in Michigan at Full Power September 6

The plant was shut down on September 1 to fix a hydrogen leak.

Reuters 14:19, September 6, 2005

# Update -Constellation Energy's 498 MW Ginna Nuke in New York at Full Power September 6

The plant was shut for work on an electro hydraulic stop valve in the
main turbine on September 2.

Reuters 14:19, September 6, 2005

# 

# Update -PSEG\'s 1,049 MW Hope Creek Nuke in New Jersey Ramped Up to 40% September 6

The plant shut August 30 due to an inoperable vacuum breaker.

Reuters 14:19, September 6, 2005

**Update -- Moisture May Have Caused Transformer Explosion in San
Francisco**

According to the preliminary results of an investigation into the cause
of the August 19 explosion in San Francisco's financial district,
moisture entering the high-voltage chamber attached to a transformer led
to an electrical short which caused the explosion. The investigation
will next try to determine how the moisture entered the transformer.

Reuters 19:34 September 2, 2005

######## Petroleum

**Shell Deer Park Refinery Operating at Reduced Rate**

As the result of a problem that led to a brief shutdown of its 67,000
b/d fluid catalytic cracker, the unit was operating at a reduced rate
according to a statement by the company on September 6.

Reuters 8:41, September 6, 2005.

**Oil Prices Drop Mid-day September 6\
**October futures for U.S. light, sweet crude dropped \$1.47 to \$66.10
a barrel on NYMEX. Oil prices lowered over the weekend as other nations
pledged to support the International Energy Agency (IEA) in releasing
emergency reserves. Also, some Gulf Coast refineries are preparing to
reopen.\
<http://money.cnn.com/2005/09/06/markets/markets_newyork/index.htm?cnn=yes>

**OPEC Could Juggle Refinery Maintenance Schedules to Help Relieve
Supply Problems**

OPEC Secretary General indicated that OPEC members could delay refinery
maintenance to make products available to help ease the supply crunch
caused by hurricane Katrina.

Reuters 10:45, September 6, 2005.

## Saudi Arabia To Cut October Oil Price

Saudi Arabia lowered the price for crude export to the U.S. and Europe
on Monday to boost supplies and reduce world oil prices, according to an
OPEC delegate.

Reuters 7:36 September 6, 2005

### Pemex Exports Down, Hit by Refinery Outages Caused by Katrina

Petroleos Mexicanos, the state oil company of Mexico announced that as a
result of damage done to U.S. refineries during the passage of hurricane
Katrina, some 311,000 b/d of its exports has been shut-in. Four U.S.
refineries supplied by Pemex were off line because of the storm, for
example Chevron's Pascagoula refinery normally receives 130,000 b/d from
Pemex. Chevron has asked Pemex to defer 3.5 million bbls over the course
of approximately one month. Pemex estimates that the other refineries
supplied by the company will return to normal operating conditions
within a few weeks.

<http://biz.yahoo.com/ap/050902/mexico_pemex_katrina.html?.v=1>

### 

**Venezuela Offers Oil to US**

In an interview, a PDVSA official indicated that Venezuela could make
available up to 1 million barrels of crude and 500 thousand barrels of
motor gasoline every four months if requested by the U.S. and further
indicated that more could be available depending on the situation with
PetroEcuador.

Bloomberg 10:13 September 6, 2005

**Update - Enbridge Can Move 200,000 b/d Above Canadian Goal of 90,000
b/d to U.S.**

Although the official target announced by the Canadian Government is to
increase crude oil exports to the U.S. by 90,000 b/d to help alleviate
shortages in the U.S., Enbridge has announced that it has an additional
200,000 b/d capacity on its pipeline system coming into the U.S. from
Canada. The company is in discussions with the Canadian government on
ways to increase flows.

[http://www.platts.com/Oil/News/8084197.xml?S=n\\](http://www.platts.com/Oil/News/8084197.xml?S=n\)

### European Gasoline Imports Hindered by Lack of Shipping Vessels

In an effort to help take the sting out of oil prices, the International
Energy Agency (IEA) has initiated the coordination of member states to
supply oil to the U.S. However, a limited number of vessels are
available, which is limiting shipments. Traders also noted with all the
action being one way to the U.S., that the supply of ships in Europe
will become even tighter.

<http://www.platts.com/Oil/News/8084350.xml?S=n>

### Anadarko -- Damage Assessment

Anadarko Petroleum Corp announced on September 6 that its Marco Polo
platform, Ensco\'s 7500 drilling rig and its Noble Paul Romano rig, as
well as Transocean\'s Deepwater Millennium drillship, have all resumed
normal operations.

<http://biz.yahoo.com/ap/050906/anadarko_katrina.html?.v=1>

**Apache Up to 76 Percent of Gas and 60 Percent of Oil Pre-Storm
Production**

Apache Corporation announced on September 6 that it had successfully
restored 76 percent of its natural gas production and 60 percent of oil
production shut-in by Hurricane Katrina. Apache said a total of 430
million cubic feet of gas a day and 41,900 barrels of oil a day was
being produced.

Reuters 12:33, September 6, 2005

### BP -- Holstein Restarted

BP Announced on September 5, that it had successfully restarted some of
its facilities in the Gulf of Mexico including its Holstein platform,
which produces 55,000 barrels of oil per day.

Reuters 4:50, September 5, 2005.

### Chevron -- Pascagoula Damage Not Catastrophic

Chevron announced on September 5, that the damage at its 325,000
Pascagoula refinery in Mississippi was not considered to be catastrophic
but was unable to provide an estimate as to when the facility would be
operational.

Reuters 12:52, September 5, 2005.

### Citgo's Lake Charles Nears Full Capacity

Citgo announced announced on September 4 that its 425,000 b/d Lake
Charles refinery was nearing full capacity, operating at 398,000 b/d
with no equipment outages as it ramps up production in the aftermath of
hurricane Katrina.

Reuters 13:54, September 4, 2005.

### ENSCO -- Damage Assessment Update

On September 2, ENSCO announced that it continued to make progress in
assessing damage to its offshore facilities in the Gulf of Mexico.
Company personnel have been able to return to all but one the company's
rigs and based on that initial assessment, it appears that none of the
rigs sustained significant damage. The single exception was the ENSCO
29. ENSCO is continuing to assess the extent of the damage and to
develop appropriate action steps.

Source: ENSCO International Incorporated

<http://biz.yahoo.com/bw/050902/25298.html?.v=1>

### ExxonMobil -- Less Damage to Chalmette Refinery than Originally Estimated

ExxonMobil Corporation has reported that the damage to its 190,000 b/d
Chalmette refinery does not appear to be as severe as original estimates
indicated. Since the power has not been restored, ExxonMobil would not
provide an estimate as to when the refinery would be returned to
service. However, the 50 percent joint owner of the facility, PDVSA
indicated that the refinery would be on-line within one week.

Reuters 11:42, September 6, 2005.

### Gulf South Pipeline -- Damage Assessment

According to the company on September 2, the Gulf South Pipeline is
operational and is supplying customers in the affected area. However,
shippers have reduced volumes delivered into the pipeline because
facilities of some customers are shut down or are in the process of
being evaluated for damage and safety issues or being repaired.

<http://pro.energycentral.com/professional/news/gas/news_article.cfm?id=5924092>

**Crude Oil Spill at Murphy's Meraux Refinery**

A spill from an 85,000 bbl tank at Murphy's Meraux refinery was
discovered on Saturday. Limited access to the site has impeded efforts
to determine the size of the spill.

Source: Murphy Oil Corporation

<http://biz.yahoo.com/bw/050904/45023.html?.v=1>

### Update - Marathon -- Damage Assessment

Marathon anticipates that, baring unforeseen developments all of its
refineries will be operating at capacity on September 6. The company
also announced that the Marathon Pipeline is returning to normal
operating status as the refineries return to normal. Marathon's offshore
facilities received only minor damage, however facilities on-shore used
by Marathon received heavier damage and thus Marathon's ability to
restart its offshore operations will be dependent in part on repairs to
the on-shore facilities.

<http://biz.yahoo.com/prnews/050903/nysa020.html?.v=6>

### Mariner Energy -- Initial Damage Report

Mariner Energy, Inc. reported on September 2 that based on its
preliminary assessment of damage to the facilities operated by Mariner
in the Gulf, all of its production should be back on line over a period
of the next few days to several weeks.

<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5924653>

**Motiva -- Convent Restarted, Norco Soon**

Motiva Enterprises LLC\'s refinery in Convent, Louisiana, had begun a
restart process on September 5 and indicated that the refinery would be
brought up to full capacity over the next several days. The company also
announced that some of the sub-systems at its Norco refinery were being
brought back in preparation for a restart operation sometime this week.

Reuters 9:58, September 6, 2005.

**Shell -- Cougar and Enchilada Platforms Operational**

Shell Oil reported on September 2 that its Cougar and Enchilada
facilities in the Gulf of Mexico are operational. In addition,
production also resumed from the Yellowhammer Gas Processing plant in
Mobile Bay.

Reuters 19:49, September 6, 2005.

**Southern Union -- Damage Assessment**

Southern Union reported on September 2 that its transmission systems in
the Gulf Coast area sustained only minor damage. Specifically, the
Florida Gas Transmission, Trunkline LNG, and Sea Robin Pipeline are
fully operational

<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5924668>

### Valero -- St Charles to be Up by Mid-week

Valero anticipates that its 185,000 b/d St Charles refinery will be
operational by mid-week.

Reuters 9:02, September 6, 2005.

### Williams -- Damage Assessment

On September 2, Williams announced that damage reports indicate that
there has been no substantial damage to its facilities and that the
Transco and Gulfstream natural gas systems are fully operational. At the
same time, the company indicated that several operations remain shut-in
(including the Mobile Bay, Ala., natural gas processing plant) due to a
lack of available natural gas supplies from producers.

Source: Williams

<http://biz.yahoo.com/ap/050902/williams_katrina.html?.v=1>

<http://biz.yahoo.com/prnews/050902/clf518.html?.v=1>

### Port of New Orleans Beginning to Open

The Port of New Orleans opened to hurricane relief ships on September 6.
Commercial shipments will slowly resume over the next few weeks.

Bloomberg, 13:23 September 6, 2005

For additional information on petroleum, see Highlights/Major
Developments

**Natural Gas**

### Cheniere Energy Launches RFP for its LNG Gateway Project

On September 6, Cheniere Energy, Inc. launched a Request for Proposal to
sell to the company up to 200 cargoes per year during the period 2008 --
2010 for its North American Gateway program. The program includes the
Sabine Pass LNG Receiving Terminal, currently under construction in
Louisiana

Source: Cheniere Energy, Inc.

<http://biz.yahoo.com/bw/050906/65370.html?.v=1>

For additional information on natural gas, see Highlights/Major
Developments

######## Other News

### Coal Supplies on the Move Again in Areas Hit by Katrina

Progress is being made in terms of both port and rail facilities for the
movement of coal imports and exports and rail shipments into in the area
hit by hurricane Katrina. At the Port of Mobile a ship has already been
able to load coal for export and at least one ship loaded with coal is
waiting to dock. The railroads in the area are rerouting trains around
areas of damage in so far as possible while repair work is on going.

<http://www.platts.com/Coal/headlines.jsp>

### Bollinger Shipyards -- Damage Report

Bollinger Shipyards, engaged in constructing offshore support vessels,
lifeboats and other related vessels reported its Lockport New
Construction yard was scheduled to resume full operations on September
6, and that its St Rose facility is closed, and that its Gulf Repair,
Algiers Repair, Quick Repair, Fourchon and Gretna facilities are all
inaccessible. The company is operating facilities at its other
locations.

<http://www.oilpubs.com/oso/article.asp?v1=4628>

######## Energy Prices 

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (09       | Ago**     | Ago**      |
|                               | /06/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 65.83     | 66.91     | 43.18      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 11.56     | 12.36     | 4.41       |
|                               |           |           |            |
| **Henry Hub**                 |           |           |            |
|                               |           |           |            |
| \$/Million Btu                |           |           |            |
+-------------------------------+-----------+-----------+------------+

> Source: Reuters

**This Week in Petroleum** from the Energy Information Administration
(EIA)

[*http://tonto.eia.doe.gov/oog/info/twip/twip.asp*](http://tonto.eia.doe.gov/oog/info/twip/twip.asp)

Updated on Wednesdays

**Weekly Petroleum Status Report** from EIA**\
**[*http://www.eia.doe.gov/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/wpsr.html*](http://www.eia.doe.gov/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/wpsr.html)

Updated after 1:00pm (Eastern time) on Wednesdays

**Natural Gas Weekly Update** from EIA

[*http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp*](http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp)

Updated after 2:00 pm (Eastern time) on Thursdays

**ENSEC threat awareness blog site** from Energy Assurance

[*http://ensec.blogspot.com*](http://ensec.blogspot.com/)