  We observed the ultra-compact binary candidate 4U 0614+091 for a total of 200
ksec with the high-energy transmission gratings onboard the \chandra X-ray
Observatory. The source is found at various intensity levels with spectral
variations present. X-ray luminosities vary between 2.0$\times10^{36}$ \ergsec
and 3.5$\times10^{36}$ \ergsec. Continuum variations are present at all times
and spectra can be well fit with a powerlaw component, a high kT blackbody
component, and a broad line component near oxygen. The spectra require
adjustments to the Ne K edge and in some occasions also to the Mg K edge. The
Ne K edge appears variable in terms of optical depths and morphology. The edge
reveals average blue- and red-shifted values implying Doppler velocities of the
order of 3500 \kms. The data show that Ne K exhibits excess column densities of
up to several 10$^{18}$ cm$^{-2}$. The variability proves that the excess is
intrinsic to the source. The correponding disk velocities also imply an outer
disk radius of the order of $< 10^9$ cm consistent with an ultra-compact binary
nature. We also detect a prominent soft emission line complex near the \oviii
L$\alpha$ position which appears extremely broad and relativistic effects from
near the innermost disk have to be included. Gravitationally broadened line
fits also provide nearly edge-on angles of inclination between 86 and
89$^{\circ}$. The emissions appear consistent with an ionized disk with
ionization parameters of the order of 10$^4$ at radii of a few 10$^7$ cm. The
line wavelengths with respect to \oviiia\ are found variably blue-shifted
indicating more complex inner disk dynamics.
