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FERC will prepare an environmental impact statement (EIS) for the floating liquefied natural gas (LNG) export terminal project of CE FLNG LLC, an affiliate of Cambridge Energy Holding LLC, which plans to construct and operate two floating natural gas liquefaction, storage and offloading units on the Mississippi River in Plaquemines Parish, LA, as well as an associated 37-mile natural gas pipeline (see Daily GPIApril 19). The Federal Energy Regulatory Commission opened a scoping period for the EIS that is scheduled to end Jan. 6 [PF13-11-000]. CE FLNG plans to moor two self-propelled liquefaction, storage and offloading vessels at the terminal that would each be about 1,100 feet long and 180 feet wide, rising about 80 feet above the waterline. The vessels would be capable of producing up to 8 million tonnes per annum of LNG and storing 250,000 cubic meters of LNG. The project has been approved for free trade agreement (FTA) country exports; approval to export to non-FTA countries is pending at the U.S. Department of Energy.

Bluegrass Pipeline LLC, a joint venture of Williams and Boardwalk Pipeline Partners LP, extended its binding open season through Jan. 17 to give prospective shippers more time to evaluate the pipeline project and its market outlet options, Bluegrass said. The project would provide natural gas liquids (NGL) transportation capacity from the Marcellus and Utica shales to the petrochemical and export complex on the U.S. Gulf Coast (see Shale Daily,March 7). The open season began Oct. 29. Bluegrass is in a horse race with a competing Marcellus-Gulf Coast NGL pipeline project proposed by Kinder Morgan Energy Partners LP and MarkWest Utica EMG LLC (see Shale Daily,Oct. 17). For documents or information, contact Joe Edgeller with Williams at (918) 573-9917, joe.edgeller@williams.com; or Beth Medlin with Boardwalk at (713) 479-8118, beth.medlin@bwpmlp.com.

American Midstream Partners LP is acquiring Blackwater Midstream Holdings LLC, a developer and operator of terminal storage facilities, from an affiliate of ArcLight Capital Partners LLC for $60 million. "The strategic acquisition of Blackwater Midstream provides an attractive platform for American Midstream in a growing segment of the midstream industry that is fee-based and not directly correlated to commodity prices," said American Midstream CEO Steve Bergstrom. The acquisition includes Blackwater's three operating terminal sites in Westwego, LA; Brunswick, GA; and Salisbury, MD. The sites are multimodal, with access to deepwater dock, barge, rail and truck transportation. The deal also includes a brownfield development opportunity in Harvey, LA, near Blackwater's Westwego terminal. The three operating terminals have 1.3 million bbl of storage capacity and store chemical, agricultural and petroleum liquid products. The deal is the first drop-down from American Midstream sponsor ArcLight since ArcLight acquired a controlling interest in American Midstream's general partner in April.

The Ohio Department of Natural Resources (ODNR) will begin rolling out a series of new rules that deal with well pad construction, brine transport and wastewater treatment, among other things, in the next month or so. The proposals are part of an effort to update and strengthen regulations for oil and gas drilling in the state. They come as part of provisions passed in Senate Bill 315, a sweeping piece of energy legislation passed last year; the state's biennial budget and another bill passed by lawmakers in early 2012. New spill prevention rules will require well pads to be inspected by state engineers after construction, and brine hauling trucks could be tracked electronically if a state legislative committee approves the proposals. Rules for the permitting of wastewater impoundments are also nearing completion. Up to 20 proposed rules are being considered, according to ODNR officials.

Magnum Hunter Resources Corp. will continue to push ahead in 2014 with plans to focus more sharply on its core assets in the Marcellus and Utica shale regions of West Virginia and Ohio, with plans to spend more than half of its capital budget in Appalachia next year. The company announced Thursday a 2014 capital expenditures budget of $400 million, of which $310 million will be dedicated to exploration and production, including $260 million for its drilling programs in the Utica and Marcellus. Continuing its efforts to divest noncore assets -- which gained traction this year as the company neared the closing of $700 million in sales toward the end of the third quarter -- Magnum said it will sell additional noncore assets for $200-$400 million in 2014 to help fund its efforts in the Utica and Marcellus.

To comply with the new state law (SB 4) mandating hydraulic fracturing (fracking) regulations, California oil and natural gas drilling officials on Wednesday designated as "emergency regulations" a set of interim rules that take effect Jan. 1 while permanent rules and an environmental assessment are being finalized (see Shale Daily, Dec. 10). While the interim rules mirror current drafts of proposed regulations that have been worked on for a year now, the permanent set of rules now under public scrutiny are expected to change before they are finalized late next year, according to Conservation Department Director Mark Nechodom.

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