Customer commitments for capacity on the proposed Southeast Supply Header LLC (SESH) pipeline system have reached nearly 1 Bcf/d, which will be the initial capacity on the pipeline when it enters service in summer 2008. Southern Co., Tampa Electric Co. and EOG Resources have committed to a total of 245 MMcf/d of capacity on the system, which will bring gas from East Texas and North Louisiana to markets primarily in the Southeast, SESH project partners Spectra Energy and CenterPoint reported. With previously announced commitments from Florida Power & Light and Progress Energy Florida, SESH’s total subscribed capacity is now 945 MMcf/d. The pipeline will continue to solicit shipper interest in the remaining capacity and the market need for a future expansion. SESH filed an application with the Federal Energy Regulatory Commission on Dec. 18, 2006, seeking approval to construct, own and operate the pipeline. The 270-mile, 36-inch and 42-inch diameter pipeline will extend from the Perryville Hub in northeast Louisiana to the Gulfstream Natural Gas System, which is 50% owned by an affiliate of Spectra Energy. Along the route, SESH will access several major pipelines serving the eastern United States and have access to several storage facilities.

Nexus Gas Partners LLC, which is owned by a New York-based private equity fund, has acquired Dominion Midstream Services LP from Dallas-based Dominion Gas Group for an undisclosed amount. The midstream assets include the Logansport gathering and dehydration system, which currently gathers 100 MMcf/d from the Joaquin Field in Shelby and Panola counties, TX, and the Logansport, Grand Cane, Spider and Benson fields in DeSoto Parish, LA. Dominion Gas Ventures LP, a Dominion Gas Group entity, will continue to provide marketing-related services for several customers transporting volumes through the Logansport system. Nexus Gas Partners is owned by Centre Partners Management LLC and its Dallas-based affiliate Centre Southwest Partners LLC.

Maverick Energy Group Ltd., a member of Z2 LLC, last week said it began construction and repair work on the gas gathering system at the Big Foot Field in Texas. Preliminary tests indicate the field could deliver 300-500 Mcf/d to the first purchaser of the supply once the work is completed. Maverick said it should finalize a gas contract within the next two weeks. The construction and repair of the gathering system in the field are part of the operations planned by Maverick, as a member of Z2, with funding from the $40,000,000 advancing credit facility, which Z2 closed with Gasrock Capital LLC in August 2006. The Big Foot field was identified in December 2004. It occupies 7,200 acres primarily in Frio County, with minimal leases in Atascosa County. Maverick is the operator of the field and owns 11.5% member interest in Z2, the owner of the field. In addition, Maverick has negotiated a six-month option to acquire an additional 13.184% membership interest in Z2. Maverick’s option exercise price is $1 million and may be exercised at any time through July 17. If it were to exercise this option, Maverick’s membership interest in Z2 would increase to 24.7%.

Anadarko Petroleum Corp. Chairman Jim Hackett has been appointed chairman of the Federal Reserve Bank of Dallas. Hackett, who was appointed by the Federal Reserve Board of Governors, was named to the Dallas board last year. He previously served on the Houston branch board. Before joining Anadarko, Hackett was president and COO of Devon Energy Corp. following its merger with Ocean Energy, where he had been chairman, president and CEO. Ocean Energy was a product of a merger in 1999 with Seagull Energy Corp., where Hackett also was chairman, president and CEO. Additionally, Hackett is former chairman of the Domestic Petroleum Council, an executive committee member of the American Petroleum Institute and a member of the Society of Petroleum Engineers. He is a director of Temple-Inland Inc. and Fluor Corp. Each Federal Reserve Bank has a nine-member board of directors. Three members represent commercial banks, three represent the public and three are appointed by the Federal Reserve Board. Of the appointees, one is designated chairman and another deputy chairman.

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