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

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

**ENERGY ASSURANCE DAILY**

**August 24, 2005**

######## Electricity

**Work Begins on Natural Gas Peaking Station in South Dakota**

Site grading and road construction have begun on Basin Electric's
peaking power plant near Groton, South Dakota. The Groton station, will
operate only at times of peak demand. Basin electric expects the new
facility will be in operation by the summer of 2006.

<http://www.aberdeennews.com/mld/aberdeennews/news/12452759.htm>

## Kentucky Public Service Commission Rejects Plan 

The Public Service Commission of Kentucky rejected a proposed route of a
power line through the Daniel Boone National Forest saying that the
company should use existing routes and avoid developing a new
right-of-way through public lands. The Commission indicated that shared
rights-of-way should be considered in future proposals brought before
the commission.

<http://www.energycentral.com/centers/news/daily/article.cfm?aid=5898622>

**OPG's 490 MW Coal-fired Unit 1 at its Nanticoke generating facility in
Ontario Shut August 24.**

Reuters 13:47, August 24, 2005.

######## Petroleum

**Katrina and Gasoline Stats Help Boost Oil to Another Record on NYMEX**

Concern over tropical storm Katrina and a larger than expected drop in
gasoline supplies helped the price of crude oil on the NYMEX jump by
more than two percent to close at \$67.32, yet another new record in the
22 years of trading in futures market.

Reuters 15:34, August 24, 2005.

Reuters 15:39, August 24, 2005.

**Update -- Iraqi Exports Increasing**

As reported in EAD on August 23, exports of Iraqi crude have resumed
from the port of Basra. The rate of flow had increased to 67,000 barrels
per hour as of this morning up from 32,000 yesterday

<http://www.platts.com/Oil/News/6870188.xml?S=n>

**Update -- Talks in Ecuador: Progress Reported but Talks Stalled As
Protesters Demand Immunity**

In early reports today, it appeared that an agreement between the
protesters whose actions crippled oil production and led to a
declaration of force majeure by Petroecuador and private companies
operating in the oil fields in Ecuador could be close at hand. However,
later in the day the talks between the government and protesters were
reported to have stalled over a demand from the protesters for immunity.
At this point, the government has rejected a demand for unconditional
immunity with respect to acts committed by the protesters. Without such
a guarantee, the protesters have indicated that they will not agree to
any settlement.

Reuters 12:25, August 24, 2005.

Reuters 15:15, August 24, 2005.

**Problem Reported in Hydrogen Unit at Shell's Martinez Refinery**

According to sources in the area, a problem developed in a hydrogen unit
at the 153,000 b/d Shell refinery in Martinez, California. The company
declined to comment on the report.

Reuters 12:25, August 24, 2005.

**Tesoro to Shut Some Units at Mandan Refinery for Upgrading**

According to a local news report, Tesoro Petroleum Corp will shut some
units at its 60,000 b/d refinery in Mandan, North Dakota in September
for a period of approximately two weeks to upgrade the units. The
company was unavailable for comment.

Reuters 13:46, August 24, 2005.

**Huntsman Declares Force Majeure Because of Outage of MTBE Unit at Port
Neches Refinery**

A problem with a propylene oxide unit at its Port Neches refinery in
Texas led Huntsman to shut down a 27,000 b/d MTBE unit and declare force
majeure. The company anticipates that the unit will return to service by
September 3.

Reuters 14:25, August 24, 2005.

**Natural Gas**

**Spot Natural Gas Prices Surpass \$10.**

Despite milder weather in much of the northeast and Midwest, hot weather
in much of the south helped propel the Henry Hub spot price of natural
gas above \$10 for the first time since February of 2003. The spot price
closed at \$10.02 while prices on the NYMEX futures market closed up
sharply at \$9.984 per million Btu.

Reuters 14:20, August 24, 2005

Reuters 15:46, August 24, 2005

### Titan Oil and Gas Pipeline Completed

Titan Oil and Gas, Incorporated announced today that its 4.5-mile long
natural gas pipeline, which will service gas production from its Wilson
County, Texas, properties, is complete.

Source: *NGI's Daily Gas Price Index* posted Aug 24, 1:06 PM\
<http://intelligencepress.com/>

Contract Awarded for Canada's First LNG Terminal

The Chicago Bridge & Iron Company (CB&I) was recently awarded a \$100
million for the design and construction of storage tanks for Canada\'s
first liquefied natural gas (LNG) import terminal.

[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BegkhoxsUUiet%3EEvbfek%5Cv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5D%5BegkhoxsUUiet>Evbfek\v)

######## Other News

**Nine Northeastern States Formulate Plan to Curb Power Plant
Emissions**

An historic agreement among nine northeastern states, the first of its
kind in the country, has been developed to address emissions from power
plants operating in the nine states. The preliminary agreement includes
a freeze on emissions as well as a market-driven emissions control
program, offsets and other provisions designed to achieve a reduction in
emissions of 10 percent by 2020. The parties will continue to work
together to finalize the plan.

<http://www.nytimes.com/2005/08/24/nyregion/24air.html?th&emc=th&oref=login>

## Tropical Storm Katrina \--NOAA Issues Hurricane Watch

According to the latest information from the National Oceanic and
Atmospheric Administration (NOAA), a tropical storm warning and a
hurricane watch is in effect for southeast Florida. This replaces NOAA's
earlier tropical storm warning. A hurricane watch indicates that
hurricane conditions could develop within the area subject to the watch.
Following the warning, if a hurricane does develop, it usually does so
within the next 36 hours.

<http://www.nhc.noaa.gov/text/refresh/MIATCPAT2+shtml/241755.shtml>

######## Energy Prices 

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (08       | Ago**     | Ago**      |
|                               | /24/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 67.10     | 63.31     | 45.68      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 10.02     | 9.99      | 5.23       |
|                               |           |           |            |
| **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/)