Assistant

North Dakota continued on a record-setting pace for oil and natural gas production at the end of the first quarter, but state Department of Mineral Resources Director Lynn Helms also raised caution in his most recent monthly “Director’s Cut” report released Friday.

North Carolina’s assistant state geologist said estimates put forth by supporters of natural gas development in the Tar Heel State are overly optimistic and actual reserves are probably much lower.

North Carolina’s assistant state geologist said estimates put forth by supporters of natural gas development in the Tar Heel State are overly optimistic and actual reserves are probably much lower.

During a state Senate confirmation hearing, the acting secretary of the Pennsylvania Department of Environmental Protection (DEP) promised to let “sound science” guide his decisions about Marcellus Shale activity in the state.

BP, ConocoPhillips, Marathon Oil, Shell, and Walter Oil and Gas signed agreements Thursday with C. Stephen Allred, U.S. assistant secretary of Land and Minerals Management, that address the problem of missing price thresholds in deepwater Gulf of Mexico oil and gas leases that were issued in 1998 and 1999. Under the new agreements the producers will pay additional royalties on oil and gas produced under the leases. However, the payments will be made for production that started on Oct. 1, 2006.

A former assistant treasurer for Enron Corp. on Friday received four years probation, four months home confinement, a $10,000 fine and was ordered to do 300 hours of community service work for his misdeeds while working at the now-defunct company.

Kerr-McGee Oil and Gas Corp. has asked a federal court for a declaratory judgment and an injunction against the Interior Department and Johnnie Burton, Interior’s acting assistant secretary for Land and Minerals Management, saying the government is illegally attempting to force Kerr-McGee to pay royalties on deepwater Gulf of Mexico production exempted by law from royalties.

A plea bargain that would have sentenced former Enron Corp. Assistant Treasurer Lea Fastow, 42, to federal prison for five months was rejected by a federal judge in Houston Wednesday, but modifications could revive the deal, according to court sources. Meanwhile, a plea bargain agreement that would send her husband, former Enron CFO Andrew Fastow, 42, to federal prison for 10 years, apparently was being negotiated late Wednesday.

President Bush yesterday announced his intention to nominateVicky A. Bailey, who served as FERC Commissioner for seven years,to be assistant secretary of energy for international and domesticpolicy. She departed the Commission last February to becomepresident of PSI Energy Inc., Indiana’s largest electric utilityand a subsidiary of Cinergy Corp. Bailey, a Republican, was firstnominated to FERC by President Clinton in 1993 to serve a termthatexpired in 1996 and then was renominated for a five-year term. Sheleft the Commission before her full term was up. An Indiana native,Bailey served on the Indiana Utility Commission from 1986 to 1993.