Joe Fisher

Texas power company Energy Future Holdings Corp. (EFH) — the product of a 2007 leveraged buyout that was the largest ever — filed for bankruptcy after years of struggling against the shale gale, which drove down prices for electricity as well as gas.

The U.S. Environmental Protection Agency (EPA) has issued a final greenhouse gas (GHG) prevention of significant deterioration construction permit to FGE Power for the FGE Texas project near Westbrook, TX, allowing the company to build the 1,620 MW natural-gas fired combined-cycle power plant between Midland and Abilene. In 2010 EPA finalized national GHG regulations, which require that air permits be obtained for projects that would substantially increase GHG emissions. Texas is working to replace the federal implementation plan with its own state program, which would eliminate the need for businesses to seek air permits from EPA. The FGE permit is the 36th such permit EPA has issued in Texas. The agency has proposed an additional five permits and has 19 more in development.

Numerous instances of seismic activity in the vicinity of oil/gas drilling waste injection wells (see Shale Daily,April 17;April 8;March 19) have prompted state regulatory agencies, geologic surveys, the Interstate Oil & Gas Compact Commission (OGCC) and the Ground Water Protection Council (GWPC) to form a group to study the matter. There are nearly 151,000 Class II underground injection control wells across the country used by the oil and natural gas industry to dispose of produced water or enhance resource recovery, according to U.S. Environmental Protection Agency data. Participants in the Induced Seismicity by Injection Work Group will share research and practical experience to equip states with tools to evaluate the potential connection between tremors and injection wells and prepare for dealing with them when they happen. The effort is part of a OGCC-GWPC initiative calledStates First.

Boardwalk Pipeline Partners LP and Williams are no longer funding their Marcellus-to-Gulf Coast natural gas liquids (NGL) joint venture pipeline project, Bluegrass, as customer commitments have yet to materialize.

Texas oil and gas producers turned in another month of production growth in February, according to preliminary data from the Railroad Commission of Texas (RRC). Both oil and gas production were up from a year ago. March oil well completions were up sharply from a year ago, but gas well completions declined.

Kinder Morgan Inc. (KMI) is dropping down to master limited partnership (MLP) El Paso Pipeline Partners LP (EPB) its 50% stakes in Ruby Pipeline and Gulf LNG and 47.5% interest in Young Gas Storage in a deal worth $2 billion including debt at Ruby and Gulf LNG.

Marcellus Shale gas production growth “continues unabated,” while Utica Shale gas output has also seen “significant growth,” prompting ICF International to lift its output expectation for the combined plays to 25 Bcf/d by 2020.

Atlas Pipeline Partners LP and Pioneer Natural Resources have expanded an existing gas processing agreement that will lead to the construction of 200 MMcf/d of additional cryogenic capacity to serve production from the Permian Basin in West Texas.

Noble Energy Inc.’s first quarter production from the Marcellus Shale set a company record as Noble continued to drill longer lateral wells.