Clearwater Gas recently completed a second fully automatic, natural gas interconnection with Peoples Gas System (PGS) located on Gulf Boulevard and 155th Avenue, just along the Redington Beach/Madeira Beach City line. This interconnect will protect our customers along Gulf Blvd in the event of a low-pressure incident. The first interconnect facility, installed two years ago, is located on US 19 and Stone Road in Pasco County.

The interconnect facility is the result of a joint Agreement between Clearwater Gas and PGS. “This interconnection agreement is an example of improvements made by Clearwater Gas to assure safe and reliable natural gas service delivery to our customers,” stated Chuck Warrington, Managing Director of Clearwater Gas System. “We take pride in delivering 99.9997% service reliability for our customers.” ♦

Senate Passes Energy Bill

On 6/28, the Senate passed an energy bill by a vote of 85-12. The House and Senate will shortly convene a conference committee to resolve differences between the two bills. Committee Chairman Joe Barton (R-TX) has indicated that he will work towards the goal of getting a final bill to the President for signature prior to a month-long August recess.

This bill contains a number of provisions which will help bring natural gas prices back to an affordable level such as incentives for alternate energy forms including gasification of coal and forest/farm wastes, solar, renewables, and nuclear. Also, the bill includes provisions that streamline the permitting of pipelines, LNG terminals and natural gas storage facilities and provides royalty relief for natural gas production from deep wells in the shallow waters of the Gulf of Mexico. ♦

Oil passes $60 on fears of tight supply

Energy prices continue to stay at high levels and test how much the market will ultimately bear. On Monday, 6/27 crude surpassed $60 per barrel, which is yet another record high for the commodity. Oil prices are more than 60% higher compared to a year ago. On a positive note, however, oil would still have to surpass $90 to breach the all-time inflation-adjusted high set 25 years ago. As a result, oil prices have kept the natural gas market over $7 per MMBtu for the month of June. With $60 no longer a threshold, oil could continue to increase, as some analyst fear. Therefore natural gas futures contracts in New York continue to trade bullish.


However, the gas market is responding to high prices by increased drilling activity. The total U.S. rig count as of 6/24 was at 1,370 as reported by Baker Hughes. This is 199 rigs higher (+17%) compared to the same week last year. Also, natural gas storage is currently 271 BCF (+15%) above the 5-yr average. Ironically, natural gas storage rates for this season have been lower than normal. Although this shouldn't pose a problem due to the 15% "cushion" already in inventory. ♦

Managing Director elected President of FNGA

Charles S. “Chuck” Warrington, Managing Director of Clearwater Gas System (CGS), was elected President of the Florida Natural Gas Association (FNGA) for 2005-07 at the organization’s annual convention held in Palm Beach on June 22-24. FNGA is a natural gas industry association whose mission is to advance and promote the sale of natural gas, natural gas appliances and related services in Florida. FNGA members include natural gas utilities, transportation pipelines, and vendors in the State of Florida.

Chuck has previously been chairman of the American Public Gas Association, the Florida Municipal Natural Gas Association, and the Tampa Bay chapter of the Florida Engineering Society. He currently serves on the board of directors of the Clearwater Chamber of Commerce and the United Way of Tampa Bay. Warrington, who resides in Clearwater, has been married for 33 years to Sherry Warrington and is the proud father of three grown daughters, and has five grandchildren. ♦