Williams said it is holding an open season through Nov. 16 for firm transportation service on its Transco natural gas pipeline system to serve markets in the southeastern United States. New service from the Mobile Bay South Project is anticipated to be available in the spring of 2010, subject to Federal Energy Regulatory Commission approval. Williams said up to 700,000 Dth/d of firm transportation service will be offered on Transco’s Mobile Bay Lateral from Station 85 in Choctaw County, AL, to an existing interconnection with Gulfstream Natural Gas System in Mobile County, AL. The final project size, scope of facilities and cost will be determined by the results of the open season. “This project will provide a timely and cost-effective way to move increasing supply at our Station 85 to markets in the Southeast,” said Phil Wright, president of Williams’ natural gas pipeline business. “There is more than 3 Bcf of upstream pipeline capacity proposed to connect to our Station 85 within the next several years, including Gulf South’s Southeast Expansion Project and Kinder Morgan’s Midcontinent Express. Plus our own Pascagoula Expansion Project is designed to bring almost 500 MMcf of supply to the region. Mobile Bay South is ideally situated to connect that supply to growing demand from local distribution companies and power generators in the Southeast.”

The Nebraska Public Service Commission has approved the proposed acquisition by Black Hills Corp. of Aquila Inc. natural gas utility assets and operations in the state. In Nebraska, Aquila serves approximately 195,000 customers in 110 communities. The approval followed a hearing held before the commission on Sept.10. The joint application was filed in conjunction with the proposed sale by Aquila to Black Hills of gas utility assets in Iowa, Nebraska and Kansas, together with gas and electric utility assets in Colorado. The Iowa Utilities Board previously gave its approval for the transfer of utility assets in that state. Similar approval applications are pending before state utility regulatory authorities in Kansas and Colorado.

Natural gas producer Range Resources Corp. Wednesday reported that its 3Q2007 production rose 13% year-over-year to its highest level ever, and it is on target to reach 16% growth this year. The Fort Worth, TX-based independent, whose production is concentrated onshore in the southwestern, Appalachian and Gulf Coast regions of the country, averaged 326 MMcfe/d in the quarter, which is 4% higher sequentially than in 2Q2007. Prices averaged $7.70/Mcfe, which was 19% higher than in 3Q2006. “Operationally, Range had a terrific third quarter,” said CEO John Pinkerton. “Production continued to steadily increase, achieving our record-setting 19th consecutive quarter of sequential production growth. Exciting progress was also achieved in several of our emerging plays as we continue to expand our portfolio of opportunities. One or more of these plays could have a material impact on our reserves and production as early as next year.” In 3Q2007, Range spent $189 million to run 34 rigs to drill 240 new wells. Of those wells, 97% were successful, the company said. Range also will book a $6.5 million expense related to exploration for the three months. The company plans to issue its earnings numbers on Oct. 25.

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