Production of national gas liquids (NGL) set an all-time record last year, exceeding 2 million b/d, the Energy Information Administration (EIA) reported Thursday. Ethane and propane production account for most of the increase in NGLs: 40% and 30%, respectively, of the volume of NGLs extracted in natural gas plants each year, according to the EIA. Other NGLs include normal butane, a petrochemical feedstock and refining blend stock for gasoline; and iso-butane, a refining feedstock and a component of gasoline octane blends.

Carrizo Oil & Gas Inc. agreed to sell substantially all of its Barnett Shale Tier 1 properties to KKR Natural Resources (KNR), a partnership of an affiliate of Kohlberg Kravis Roberts & Co. LP (KKR) and Premier Natural Resources, for $104 million. The approximately 13,000 acres being sold include 75 gross (58.5 net) wells currently producing at an approximate gross rate of 15.7 MMcfe/d (8.3 MMcfe/d net). Estimated proved reserves amount to 122.4 Bcfe, 55% of which are proved undeveloped, as determined by Carrizo’s third-party engineers at year-end 2010. The sale is expected to close in mid-May subject to conditions and price adjustments.

New Orleans-based Entergy Corp. said that its subsidiaries have agreed to purchase two natural gas-fired combined-cycle power plants from divisions of Houston-based KGen Power Corp. Entergy Mississippi Inc. will acquire the 450 MW Hinds Energy Facility in Jackson, MS, from KGen Hinds LLC for approximately $206 million, while Entergy Arkansas Inc. will buy the 620 MW Hot Spring Energy Facility in Hot Spring County, AR from KGen Hot Spring LLC for about $253 million. Both Entergy subsidiaries plan to make various plant upgrades after closing, anticipated for mid-2012. The acquisitions are contingent upon regulatory and permitting approval from federal and state agencies. KGen Power shareholders also must approve the deal; a vote is expected in mid-June.

Enbridge Energy Partners LP (EEP) plans to invest $175 million to expand its East Texas system to provide gathering, treating and transmission services for several major gas producers on the Texas side of the Haynesville Shale. The Houston-based partnership said it has signed long term agreements with several major producers to provide services in Shelby, Sabine, San Augustine and Nacogdoches counties. EEP on Friday reported 1Q2011 net income of $117.1 million (38 cents/share) compared with $115.4 million (42 cents) in 1Q2010.

Citizens for Pennsylvania’s Future (PennFuture) asked the Pennsylvania Department of Environmental Protection (DEP) for information about how it enforces its environmental regulations. PennFuture filed three requests under Pennsylvania’s Right to Know law asking for information about a DEP policy that requires inspectors to get agency head approval before issuing Notices of Violation (NOV) (see NGI, April 4). The DEP describes that policy as a three-month “pilot project” designed to make sure inspectors are consistently applying regulations across the state, but critics believe it will “chill” the regulatory process. The statewide environmental group asked the DEP for all documents connected to the policy, including documents outlining which state officials and agencies helped create and implement the policy, as well as information about three violations identified after the policy became public in late March.

The Colorado Public Utilities Commission (PUC) has issued a notice of proposed rulemaking aimed at updating its rules covering natural gas pipeline operations to bring them in line with federal safety requirements. The PUC proposal would amend the state’s current pipeline safety rules and will be published May 10 in the Colorado Register, and a hearing will be held June 28 in Denver before a PUC administrative law judge. Part of the PUC’s changes would update the emergency waiver procedures to make the state’s requirements parallel regulations issued by the federal Pipeline and Hazardous Materials Safety Administration (PHMSA) in the wake of recent pipeline accidents. One part of the proposed changes in Colorado concerns ongoing inspections and testing of transmission pipelines, particularly in heavily populated areas, under the operator’s integrity management programs. Language is included dealing with pipeline operators requesting to deviate from or reduce the frequency of periodic inspections and tests “on the basis of an engineering analysis and risk assessment.” The proposed new language said deviation on inspections and testing can be granted only if the alternative frequency “is not inconsistent” with pipeline safety.

Oregon regulators approved an all-parties settlement for Portland, OR-based NW Natural, allowing the natural gas distribution utility to proceed with its joint venture (JV) to develop gas reserves with a U.S. subsidiary of Calgary-based Encana Corp. The JV announced earlier this year is to be with Encana Oil & Gas (USA) Inc. An Oregon Public Utility Commission (PUC) spokesperson said the cost of the gas supplies will be flowed through to utility customers this fall when the regulatory panel makes an annual rate adjustment to reflect changes in wholesale prices. As part of the settlement NW Natural will make a general rate case filing by the end of the year, something it has not done for nine years. Parties to the deal include PUC staff, Oregon’s Citizens’ Utility Board, Northwest Industrial Gas Users and the utility. Based on the Feb. 25 joint agreement, NW Natural and the Encana U.S. unit will develop gas reserves in the Jonah Field in Wyoming, located north of Rock Springs.

A report released by the U.S. Department of Energy’s National Renewable Energy Laboratory touted the role of state and local governments to turn the corner on solar, wind and other renewable market development. State policies could be a key to attracting clean energy, it said. Also, the federal Bureau of Land Management (BLM ) last Tuesday published rules in the Federal Register that are supposed to streamline the processing of right-of-way (ROW) applications for public lands with solar, wind and other renewable developments on them. The rules will allow the BLM to temporarily segregate lands in a wind or solar energy ROW application from the location and entry of mining claims while the BLM is considering the application.

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