As part of the agency’s royalty-in-kind (RIK) program, the Minerals Management Service (MMS) requested written offers last week to purchase 387,000 MMBtu/d of royalty gas produced from federal leases in the Gulf of Mexico. The production is delivered into 11 offshore pipeline systems, including ANR Nearshore, Columbia Gulf Bluewater, Central Texas Gathering System, Garden Banks, Mississippi Canyon, Matagorda Offshore Pipeline System, Seagull Shoreline, Stingray, Tennessee Gas 800 Leg, Tetco East Louisiana and the Transco Southeast Lateral. MMS said it may award a contract on the basis of the initial offer received without discussion. However, MMS may negotiate with offerers in the event offers of similar or unanticipated value are received. MMS said the Henry Hub and/or Nymex are preferred indices on all packages in addition to the named indices. Initial deliveries of royalty gas to the buyer will commence on Nov. 1. The royalty gas delivery period will be for a term of five months ending March 31, 2005 or 12 months ending Oct. 31, 2005, depending on the value of offers received. The MMS-implemented RIK program generates revenues through receiving oil and gas royalties in kind, rather than in cash, and competitively selling the commodities in the marketplace.
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Articles from Agency
Pre-Filing Environmental Work Speeds FERC Pipe Processing, Kelly Says
A National Environmental Protection Agency (NEPA) pre-filing process applied to natural gas pipeline projects has greatly accelerated the average permitting times to a year or less for what used to average more than two years, FERC Commissioner Suedeen Kelly told an industry audience in Santa Fe, NM, last Friday. The same process of regulatory staff and applicants sharing information before a formal filing was applied last year in the pending application by a subsidiary of Mitsubishi Corp. to build a liquefied natural gas (LNG) in Long Beach Harbor.
FERC Stands By Interim Market Power Screens
FERC on Thursday issued an order in which the federal agency affirmed interim market power screens the Commission adopted in April, but FERC also sought to clarify implementation issues regarding the screens and the associated market-based rates process.
DOE Forms Multi-Agency Work Group to Tackle Gas Supply Problem
Energy Secretary Spencer Abraham said Wednesday that DOE is teaming up with FERC, EPA, the Department of Homeland Security, and the Commerce, Interior and Agriculture departments in a new interagency group that will develop recommendations on how to increase domestic natural gas supply and promote energy efficiency.
DOE Forms Multi-Agency Work Group to Tackle Gas Supply Problem
Energy Secretary Spencer Abraham said Wednesday that DOE is teaming up with FERC, EPA, the Department of Homeland Security, and the Commerce, Interior and Agriculture departments in a new interagency group that will develop recommendations on how to increase domestic natural gas supply and promote energy efficiency.
Duke Energy, EPA Move to Dismiss Clean Air Trial Proceedings
Duke Energy and the U.S. Environmental Protection Agency (EPA) last week filed a joint motion calling on U.S. Middle District Court of North Carolina trial Judge Frank Bullock to rule in favor of Duke Energy in the government’s Clean Air Act “New Source Review” (NSR) enforcement litigation brought against the company.
FERC OKs Western Gaming Settlements Reached Between Staff, Power Firms
FERC last Thursday approved a series of settlement agreements previously hammered out between Commission staff and four power companies, as well as a city in California, resolving allegations that the power-related entities tried to game California’s electricity market in 2000-2001. Under the settlements, the power companies and the California city will pay a total of $141,834.
Northern Natural Responds to Show-Cause Order, Defends Discount Rates
Northern Natural Gas pipeline called on FERC last week to close the agency’s show-cause proceeding and dismiss a related complaint case brought against it by two Midwest cogenerators, claiming that the transportation letter agreements negotiated with the cogenerators were lawful and did not restrict competition.
Northern Natural Responds to Show-Cause Order, Defends Discount Rates
Northern Natural Gas called on FERC this week to close the agency’s show-cause proceeding and dismiss a related complaint case brought against it by two Midwest cogenerators, claiming that the transportation letter agreements negotiated with the cogenerators were lawful and did not restrict competition.
SEC Plans Closer Look at Shell’s Reserves Changes
The chairman of the Securities and Exchange Commission (SEC) last week said that the agency is reviewing oil and gas reserves accounting after the announcement by Royal Dutch/Shell Group to recategorized 20% of its proved and probable reserves (see NGI, Jan. 12).
