Appalachian

The Independent Oil & Gas Association of West Virginia (IOGA) has filed an emergency motion asking FERC to correct “serious errors” that it claims the agency made by suspending Equitrans L.P.’s proposed 156% rate increase for only one day and in waiving the 30-day notice requirement under the Natural Gas Act (NGA).

Flat to moderately lower Northeast/Appalachian numbers Wednesday ran against the grain of overall firmer spot prices in which gains were mostly small and quotes ranged from flat to more than 30 cents higher. Virtually all of the increases above a dime occurred at Rockies, Pacific Northwest and Northern California points, which are feeling a touch of winter from a Pacific storm.

In denying a natural gas producer’s plea for FERC to reassert jurisdiction over a network of gathering facilities in the Appalachian region, the Commission ruled last week the Virginia-based company failed to show that Columbia Gas Transmission Corp. and its gathering affiliate, Columbia Natural Resources Inc. (CNR), had acted “in concert” to manipulate gathering rates and thwart competitive transportation service.

In denying a natural gas producer’s plea for FERC to reassert jurisdiction over a network of gathering facilities in the Appalachian region, the Commission ruled the Virginia-based company failed to show that Columbia Gas Transmission Corp. and its gathering affiliate, Columbia Natural Resources Inc. (CNR), had acted “in concert” to manipulate gathering rates and thwart competitive transportation service.

After retreating from war-torn Sudan earlier in the week by selling its stake in Sudan’s major oil project to India’s national oil company for C$1.2 billion ($760 million), Canada’s No. 2 producer, Talisman Energy, said Friday it is buying the assets of Fairman Drilling Co., FDC Venture 15 LP, East Resources Inc. and ABARTA Oil & Gas Co. Inc. for US$58.6 million. The purchase is being made through Talisman subsidiary Fortuna Energy Inc.

Statoil Energy’s sale of 1.1 Tcf of gas reserves and 6,500 wellsin the Appalachian Basin to Equitable Resources earlier this monthfor $630 million was the first of three possible transactions, aspokeswoman said last week. The latter two, which would include thecompany’s top-30 trading operations, and growing power developmentarm, are expected to involve an eastern-U.S. electric utility buyerand take place before March, according to one inside source.

The company began moving its Houston operations to its Alexandria headquarterslast week in preparation for closing down the Houston office. The Houstonmarketing and trading group is expected to be operating at least throughthe end of the month and plans to come up with a transition plan to ensureservice will not be disrupted.

Cabot Oil & Gas Corp. said it “high graded” its portfoliolast week with the announced sale of Appalachia properties toEnervest Management Co. for $46.2 million, and the subsequentpurchase of proved reserves in the Wyoming Green River Basin worth10.3 Bcfe. Cabot said proceeds from the sale were used both to helpfund the Wyoming acquisition and to repay debt. So far this yearCabot has sold 73.9 Bcfe of non-strategic reserves for $60 millionacross all regions.

Cabot Oil & Gas Corp. said it “high graded” its portfolioyesterday with the announced sale of Appalachia properties toEnervest Management Co. for $46.2 million, and the subsequentpurchase of proved reserves in the Wyoming Green River Basin worth10.3 Bcfe. Cabot said proceeds from the sale were used both to helpfund the Wyoming acquisition and to repay debt. So far this yearCabot has sold 73.9 Bcfe of non-strategic reserves for $60 millionacross all regions.