Advise

Chesapeake Energy Corp. on Wednesday pulled the trigger on multiple agreements to sell most of its Permian Basin properties to Royal Dutch Shell plc and Chevron Corp., and it clinched transactions with Global Infrastructure Partners (GIP) for the rest of its midstream assets, which together would give the cash-strapped producer total net proceeds of $6.9 billion.

Three environmental groups in California have filed a formal protest against the federal Bureau of Land Management’s (BLM) plans for a September oil/gas lease sale in the Monterey play, alleging that a more thorough environmental assessment (EA) is needed and calling on BLM to zero in on the impact hydraulic fracturing (fracking) might have.

The debate over hydraulic fracturing (fracking) is sparking concerns about drinking water safety in the Marcellus Shale area and nationwide, according to the results of a trio of surveys released by the nonprofit Civil Society Institute (CSI).

The Pennsylvania House on Tuesday and the Senate on Wednesday separately voted in lame duck sessions to override Gov. Ed Rendell’s veto of an education bill. However, the severance tax on gas drillers that Rendell and some lawmakers had sought for more than two years was never considered.

Six people were appointed to Utah’s citizen Resource Advisory Council (RAC), which will advise the Interior Department’s Bureau of Land Management (BLM) on public land issues. The RACs, composed of citizens chosen for their expertise in various fields of natural resource use and management, help BLM carry out its stewardship of 253 million acres of public lands. Utah’s newly appointed members are Gary Kofford of Castle Dale, who was selected to represent Utah’s elected officials; Bill Hopkin of Woodruff to represent grazing interests; Mike Roberts and Ray Bloxham, both of Salt Lake City, to represent environmental groups; Stuart Sprouse of Sandy to represent dispersed recreation; and John Malechek of Logan, who will represent academia.

Six people were appointed Thursday to Utah’s citizen Resource Advisory Council (RAC), which are to advise the Interior Department’s Bureau of Land Management (BLM) on public land issues.

Denver-based Delta Petroleum Corp. has retained Morgan Stanley and Evercore Partners to evaluate and advise the board of directors on “strategic alternatives” that may include selling “some or all” of the company’s assets, entering into partnerships or joint venture opportunities, or selling the entire company. Delta said it would not comment until the board has approved a specific transaction or when there are “significant developments.” Delta’s core areas of operations are the Gulf Coast and Rocky Mountain regions, which comprise the majority of its proved reserves, production and long-term growth prospects (see Daily GPI, April 8; Dec. 24, 2008; Aug. 28, 2008).

Constellation Energy has hired Morgan Stanley and UBS to advise it on “strategic alternatives” and said Wednesday “the company and its advisors are in active discussions with potential strategic partners.” Meanwhile, Constellation shares posted a second day of steep declines, and Standard & Poor’s (S&P) warned of a “multiple-notch” downgrade if the company’s credit position isn’t bolstered.

CTG Resources Inc., parent of Connecticut Natural Gas, announcedit has retained Paine Webber Inc. to advise it on strategicalternatives to maximize shareholder value, including the potentialsale of the company and acquisitions of nonregulated enterprises toexpand the company’s district heating and cooling activities.