Alabama

Pinnacle LNG, Inc., a subsidiary of AGL Resources, has announced an open season from Feb. 18 to March 14, 2003 to seek natural gas storage and terminal service customers for its liquefied natural gas (LNG) plant located in Trussville, AL, and connected to the Southern Natural Gas mainline.

Thirty-four parcels of Federal land in Alabama, Arkansas, Kentucky, Louisiana, Michigan and Mississippi brought $101,037 to the U.S. Treasury through a competitive auction of oil and gas leases conducted by the U.S. Department of the Interior’s Bureau of Land Management (BLM) on July 11, in Springfield, VA. Bonus bids, filing fees, and rental revenue totaled $322,064, of which $221,027 will be shared with the six states. BLM, Eastern States administers the mineral estate in 31 states east of and adjoining the Mississippi River and offers selected parcels at quarterly competitive auctions. Regulations require the bidding to open at $2 per acre minimum. Seeco, Inc. from Fayetteville, Arkansas purchased a 2,449 acre parcel in Logan County, AR with their bid of $67 per acre — the highest per-acre bid of the auction. Leases are awarded for a term of 10 years and as long thereafter there is production in paying quantities. The Federal Government receives a 12.5% royalty on the value of the amount of production. Also, each respective State Government receives a 25% minimum share of the bonus bids and the royalty from each lease. Twenty-nine parcels remained available for noncompetitive, next-day filing.

Thirty-four parcels of Federal land in Alabama, Arkansas, Kentucky, Louisiana, Michigan and Mississippi brought $101,037 to the U.S. Treasury through a competitive auction of oil and gas leases conducted by the U.S. Department of the Interior’s Bureau of Land Management (BLM) on July 11, in Springfield, VA. Bonus bids, filing fees, and rental revenue totaled $322,064, of which $221,027 will be shared with the six states. BLM, Eastern States administers the mineral estate in 31 states east of and adjoining the Mississippi River and offers selected parcels at quarterly competitive auctions. Regulations require the bidding to open at $2 per acre minimum. Seeco, Inc. from Fayetteville, Arkansas purchased a 2,449 acre parcel in Logan County, AR with their bid of $67 per acre — the highest per-acre bid of the auction. Leases are awarded for a term of 10 years and as long thereafter there is production in paying quantities. The Federal Government receives a 12.5% royalty on the value of the amount of production. Also, each respective State Government receives a 25% minimum share of the bonus bids and the royalty from each lease. Twenty-nine parcels remained available for noncompetitive, next-day filing.

The Eastern Gulf of Mexico Sale 181, which covers an area about 64 miles offshore Louisiana, 15 miles offshore Alabama and at least 100 miles offshore Florida, is still on track for December, Interior Secretary Gale Norton said last week — even though her boss President Bush and his brother, Florida Gov. Jeb Bush, have voiced opposition to opening up Florida’s coast for drilling.

The Eastern Gulf of Mexico Sale 181, which covers an area about 64 miles offshore Louisiana, 15 miles offshore Alabama and at least 100 miles offshore Florida, is still on track for December, Interior Secretary Gale Norton said this week — even though her boss President Bush and his brother, Florida Gov. Jeb Bush, have voiced opposition to opening up Florida’s coast for drilling.

More natural gas transportation and storage capacity is on theway in Alabama as Bay Gas Storage Co. Ltd. released its plans for a24-inch pipeline in Mobile County which began construction in lateNovember. The EnergySouth subsidiary also has an additional saltdome storage cavern under construction.

More natural gas transportation and storage capacity is on theway in Alabama as Bay Gas Storage Co. Ltd. released its plans forconstruction of a 24-inch pipeline in Mobile County which willcommence before the month is finished. The EnergySouth subsidiaryalso has an additional salt dome storage cavern under construction.

Coral Power LLC will supply the natural gas and collect thepower output of a 900 MW generating station to be built andoperated by Tenaska Alabama II Partners L.P., a limited partnershipcomprised of affiliates of Tenaska Inc. The two companies announcedyesterday they had executed an energy conversion agreement for thefacility to be located near Billingsley, AL. Coral plans to marketthe power throughout the Southeast. It is the second of this typeof agreement between Coral and Tenaska. The first was signed inAugust, 1999 for an 845 MW Tenaska Gateway Generating Station inRusk County, TX. The initial financing process for the project willbegin early next year with construction slated to begin in thesummer of 2001 and be completed for summer 2003.

Coastal Oil and Gas has announced it is selling its interests in36 offshore oil and gas holdings. The offshore leases are locatedin the Gulf of Mexico, in blocks ranging from offshore of Alabamato south of Texas. When asked about the reasons for selling theseleases, spokesperson Dorothy Beeler said it was just “ongoingportfolio asset management,” and that it had nothing to do withCoastal’s planned merger with El Paso Energy.