CANADA LIFTS BAN ON CERTAIN GAS SALES
Canada's National Energy Board has ended a ban on short term natural gas sales to the California market effective Nov. 1.
The ban was imposed at the request of Canadian producers in June 1992 during a dispute with the California Public Utilities Commission.
The commission had ordered Pacific Gas & Electric Co., San Francisco, to break long term gas purchase contracts with a pool of Canadian producers.
Now, the producers and PG&E have reached an agreement on new sales terms to drop the contracts in force. PG&E will pay producers about $200 million (U.S.) for breaking the contracts covering deliveries of about 1 bcfd.
A 75% expansion of the Pacific Gas Transmission Ltd. pipeline and related Canadian pipeline systems to California will begin operation Nov. 1.
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