2002

The winter of 2002/03 doesn’t seem to realize its time is up. Snow and ice storms scattered from the central Plains through the Midwest and Northeast resulted in gains ranging from about a nickel to 45 cents in non-Rockies/San Juan Basin markets Monday, although a couple of scattered points barely eked out any increase at all.

Responding to interest expressed in firm deliveries from CIG to the new Cheyenne Plains system (see Daily GPI, Dec. 11, 2002), CIG is holding a binding open season through March 20 to solicit new firm compression agreements. Such agreements are required to support additional compression in the Cheyenne, WY area that would allow volumes to be delivered from the lower-pressure CIG system into Cheyenne Plains or other high-pressure systems near Cheyenne. It is anticipated that the new compression would be in service by August 2005, which is the anticipated in-service date of the Cheyenne Plains system. See the bulletin board for details, or call Greg Ruben at (719) 520-4870 for more information.

Wyoming led the way for mineral lease revenues in 2002 and will receive a check for nearly $387 million from the Minerals Management Service (MMS), which is distributing a total of almost $753.3 million to 33 U.S. states.

Wyoming led the way for mineral lease revenues in 2002 and will receive a check for nearly $387 million from the Minerals Management Service (MMS), which is distributing a total of almost $753.3 million to 33 U.S. states.

Calgary-based Devlan Exploration Inc. said Wednesday that its established reserves as of the first of the year were 5.27 million boe (gas converted at 6:1), an increase of 92% over the prior year. The evaluation conducted by Sproule Associates Limited showed the reserves consisted of 2.1 million barrels of oil and natural gas liquids plus 19.3 Bcf of natural gas.

Due to the extent of work required at Muddy Gap Compressor Station (see Daily GPI, Dec. 27, 2002), throughput on the Wind River Lateral is expected to stay restricted to 225 MMcf/d through Monday (Jan. 6), returning to normal for Tuesday’s Cycle 1 nominations, CIG said. It had previously expected to complete the repairs Friday. The lateral extends from CIG’s Lost Cabin Compressor Station to the Rawlins Compressor Station.

Other than a smaller than expected storage withdrawal report for a change, Friday’s cash market held no surprises. As sources had expected the day before, a screen decline of nearly 20 cents on Thursday, the normal demand drop of a weekend (especially coming between two major holidays) and forecasts of upcoming milder weather led to most points falling 15-35 cents or so. Transco Zone 6-NYC was conspicuous with a plunge of more than 60 cents.

Natural Gas Pipeline Co. of America (NGPL) Tuesday was awarded a certificate by the Federal Energy Regulatory Commission to convert 10.7 Bcf of cushion gas into working gas at its North Lansing storage field in Harrison County, TX.

Claiming that the $3.5 billion punitive damages award to the state in a Mobile Bay royalties case was “without merit,” Exxon Mobil Corp. last week urged the Alabama Supreme Court to overturn the verdict by a lower court jury.