2008

The almost $7 million to be forfeited by Constellation NewEnergy-Gas Division LLC and the $400,000 levied against Entergy New Orleans Inc. in separate cases for violations of FERC’s capacity release rules could have been much higher if the companies had not self-reported the violations, Federal Energy Regulatory (FERC) Chairman Joseph T. Kelliher said in announcing consent agreements with the companies March 11.

Buoyed by natural gas futures’ venture above $10 in Monday’s session, most cash market points across the country on Tuesday recorded modest gains, from a few pennies to just more than 30 cents. Gains were recorded at a vast majority of points across the country, with a few declines sprinkled through the Northeast and Midcontinent.

The almost $7 million to be forfeit by Constellation NewEnergy-Gas Division LLC and the $400,000 levied against Entergy New Orleans Inc. in separate cases for violations of FERC’s capacity release rules could have been much higher if the companies had not self-reported the violations, FERC Chairman Joseph T. Kelliher said in announcing consent agreements with the companies Tuesday.

On the heels of an “initial inquiry” launched Friday by the Interior Department’s inspector general, three environmental groups Monday sued the Bush administration for missing a legal deadline to decide whether to list the polar bear under the Endangered Species Act (ESA). The listing likely would trigger new restrictions on oil and natural gas drilling in Alaska.

Could proposed new rules of the Colorado Oil and Gas Conservation Commission (COGCC) and initiatives to take away tax breaks drive natural gas and oil producers out of the state? Some state legislators expressed their concerns about a possible slowdown in energy development if more stringent regulations are issued, but if drilling permit applications are any indication, the oil and gas industry appears to be in the state for the long haul.

Market Hub Partners Holding (MHP), a joint venture of Spectra Energy Corp. and Spectra Energy Partners LP, will add approximately 6.5 Bcf of working capacity at its Moss Bluff natural gas storage facility by developing a fourth cavern at the Liberty County, TX, site. The MHP system at Moss Bluff is a high-deliverability salt cavern storage facility with 15 Bcf of current working capacity. A permit for the cavern expansion has been secured from the Texas Railroad Commission, and the fourth cavern is expected to be in service in summer 2011, MHP said. The company will also upgrade surface facilities to provide increased interconnectivity to the interstate pipeline network. Construction of the facilities is expected to begin this summer with in-service as early as the first half of 2009. In late 2006 Spectra said it would expand its Gulf Coast salt cavern storage facilities by more than 35 Bcf over the next six years (see NGI, Dec. 11, 2006). Last year the company filed an application with FERC to add a fourth cavern at its Market Hub-Egan gas storage facility — a 20 Bcf high-deliverability salt cavern facility in Acadia Parish, LA — which would ultimately increase working gas capacity of that facility to 32 Bcf (see NGI, Feb. 26, 2007).

Could proposed new rules of the Colorado Oil and Gas Conservation Commission (COGCC) and initiatives to take away tax breaks drive natural gas and oil producers out of the state? Environmental groups and the energy industry are looking to the state legislature in what may be a contentious battle between wildlife enthusiasts and energy developers.

Work on a draft environmental review of Australia-based Woodside Natural Gas’ liquefied natural gas (LNG) project offshore Southern California has been suspended by the U.S. Coast Guard, pending the completion of a global lifecycle assessment of the greenhouse gas (GHG) impact of the proposed ship-to-ship transfer and regasification process 28 miles offshore.

For an interim period before long-term contracts kick in, Sempra Energy is looking for spot market liquefied natural gas (LNG) shipments to line up following the completion of some test shipments that are due in the second quarter on the West Coast, Sempra CEO Donald Felsinger told financial analysts on an earnings call Tuesday.