1.   -- Natural gas producers lost a battle over whether the federal government must regulate gas-gathering activities by subsidiaries of interstate pipeline companies.

2.   El Paso runs the biggest interstate pipeline system serving California, accounting for about half the capacity to the state.

3.   Enron has several interstate pipeline expansion projects in the works, which analysts said are expected to increase future earnings from the segment.

4.   El Paso Natural Gas and FERC see the law differently, saying Congress only authorized FERC to regulate gathering activities by interstate pipeline companies.

5.   For example, utilities purchase space on interstate pipelines to move the gas they sell to their customers.

6.   Gas utilities have preferred positions on interstate pipelines.

7.   Hart said the state has still not decided whether to contract for space on the interstate pipelines that bring gas to California from out-of-state producing basins.

8.   Hoecker said his agency was working on a plan to use the Internet for a daily auction to set costs for transporting gas through interstate pipelines.

9.   Instead, Tejas feeds it gas to interstate pipelines owned by others.

10.   It also has an indirect stake in Northern Border Pipeline Co., an interstate pipeline system.