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Industry Briefs

An attempt to override President Obama's veto of a bill authorizing construction of the controversial Keystone XL oil pipeline failed to garner enough support in the U.S. Senate on Wednesday. The vote was 62-37, five votes short of the 67 necessary. "At this point, we will continue to press for approval of the Keystone XL pipeline by attaching a similar measure to another must-pass bill, perhaps an energy, transportation or appropriations bill," said Sen. John Hoeven (R-ND), sponsor of S-1, the original bill authorizing Keystone XL. Obama vetoed the bill on Feb. 24 (see Daily GPIFeb. 24).

Rockies Express Pipeline LLC (REX) has filed an application with the Federal Energy Regulatory Commission (FERC) to switch the Seneca Lateral in Ohio from intrastate to interstate service to allow shippers more flexibility on the East-to-West modification. The lateral delivers up to 600 MMcf/d from a processing plant in Noble County. FERC approval of the plan would no longer burden shippers with requirements under intrastate service such as demonstrating that the gas is being moved for a local distribution company, the application said. Seneca Lateral recently reached full capacity (see Shale DailyMarch 2).

Calgary-based Gasfrac Energy Services Inc. has agreed to sell "substantially all" of its assets and technology to an undisclosed third party. Gasfrac filed for protection from creditors in January and received court approval under Canada's Companies' Creditors Arrangement Act to begin the sales process (see Shale DailyJan. 28Jan. 16). Until the sale is completed, Gasfrac would continue to operate under the supervision of its board and a court monitor. The hydraulic fracturing services operator also obtained an extension until April 3 with PNC Bank Canada Branch, its primary secured lender, to forbear from exercising remedies under existing secured loan agreements. "Gasfrac, with the assistance of its employees and professional advisers and under the supervision of the special committee and the monitor, believes it has conducted an effective and transparent competitive sales process," said Chairman Leigh Cassidy. "The board of directors is of the view that this sale transaction represents the best outcome for Gasfrac given current circumstances."

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