The objective of this program is to develop a system to both monitor the vibration of a bottomhole assembly, and to adjust the properties of an active damper in response to these measured vibrations. Phase I of this program entails modeling and design of the necessary subsystems and design, manufacture and test of a full laboratory prototype. The project continues to advance, but is behind the revised (14-month) schedule. Tasks 1-3 (Modeling, Specification and Design) are all essentially complete. The test bench for the Test and Evaluation (Tasks 4 & 5) and the laboratory prototype were constructed by the end of the period. During assembly, however, several of the key subassemblies became galled together, and had to be cut apart. These parts are being remachined with harder surfaces to prevent recurrence of this problem. One key component, the MR damper mandrel, has been redesigned into a three-piece assembly which will facilitate assembly and reduce the cost of replacement of worn components. The remade parts will be delivered by April 19, and the prototype assembled. Testing will begin during the first week of May and is anticipated to be completed before the revised end date for Phase I, May 31, 2004.

Gas storage is a critical element in the natural gas industry. Producers, transmission and distribution companies, marketers, and end users all benefit directly from the load balancing function of storage. The unbundling process has fundamentally changed the way storage is used and valued. As an unbundled service, the value of storage is being recovered at rates that reflect its value. Moreover, the marketplace has differentiated between various types of storage services, and has increasingly rewarded flexibility, safety, and reliability. The size of the natural gas market has increased and is projected to continue to increase towards 30 trillion cubic feet (TCF) over the next 10 to 15 years. Much of this increase is projected to come from electric generation, particularly peaking units. Gas storage, particularly the flexible services that are most suited to electric loads, is critical in meeting the needs of these new markets. In order to address the gas storage needs of the natural gas industry, an industry-driven consortium was created--the Gas Storage Technology Consortium (GSTC). The objective of the GSTC is to provide a means to accomplish industry-driven research and development designed to enhance operational flexibility and deliverability of the Nation's gas storage system, and provide a …