Northern Natural Gas Co. on behalf of its business, Southern Natural Gas and Florida Gas Transmission, has asked the Federal Energy Regulatory Commission for approval to abandon in place the Matagorda Offshore Pipeline System (MOPS), which includes offshore facilities and onshore facilities in Texas because they are “grossly underutilized.” During April, the MOPS system transported less than 6,500 Dth/d, a fraction of the system’s original design capacity of 480,000 Dth/d, Northern Natural said. In August 2012, FERC approved Northern’s request to abandon the MOPS Phase III facilities; Northern now wants authority to abandon the first two phases, which consist of about 55 miles of 24-inch diameter pipeline that begin at Matagorda Block 686 and continue to onshore facilities at Tivoli, TX. In addition to dwindling pipeline volumes, evidence demonstrates that production declines are permanent, Northern said. FERC denied Northern’s original plea to abandon the Phase I and II facilities in an April 2011 order. At that time, there were 17 production points (out of the original 30), and now there are only four production points tied into the MOPS system, Northern said.
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Industry Brief
Williams Pacific Connector Gas Operator LLC, acting as the engineering, procurement and construction management contractor on behalf of Pacific Connector Gas Pipeline LP asked the Federal Energy Regulatory Commission for authorization to construct and operate the Pacific Connector Pipeline, a proposed interstate natural gas transmission system designed to deliver up to 1,060,000 Dth/d of natural gas from interconnects with Ruby Pipeline LLC and Gas Transmission Northwest LLC near Malin, OR, to the Jordan Cove LNG export terminal being developed by Jordan Cove Energy Project LP. In late May Jordan Cove, an affiliate of Calgary-based Veresen Inc., filed an application with FERC to construct the liquefied natural gas export facility on the West Coast within the international Port of Coos Bay, OR (see Daily GPI, May 23).
Northern Seeks to Abandon ‘Grossly Underutilized’ Matagorda System
Northern Natural Gas Co. on behalf of itself, as well as Southern Natural Gas and Florida Gas Transmission, has asked FERC for the green light to abandon in place offshore facilities and onshore facilities in Texas, known as the Matagorda Offshore Pipeline System (MOPS), which are seldom used by shippers anymore.
Pennsylvania Producer Impact Fees Nearly $203M in 2012
Natural gas producers in Pennsylvania have paid most of the $202.7 million owed under the drilling impact fee enacted under Act 13, the state’s omnibus Marcellus Shale law.
CFTC Joins in Ex-Amaranth Trader’s Appeal of FERC Fine
The Commodity Futures Trading Commission (CFTC) Wednesday filed an intervenor brief on behalf of former Amaranth gas trader Brian Hunter, who is appealing an order by the Federal Energy Regulatory Commission (FERC) for fining him $30 million for allegedly manipulating the gas futures market.
PG&E Blasts San Bruno Pipe Lawsuit Allegations
Under fire in lawsuits filed on behalf of victims of the San Bruno pipeline rupture last September, Pacific Gas and Electric Co. (PG&E) fired back at its accusers, saying it was not blaming residents and other third-parties for the natural gas transmission line explosion.
Lawsuit Alleges Well Water Contamination in New York
A New York City-based law firm specializing in mass tort litigation is suing Anschutz Exploration Corp. and its contractors on behalf of nine families that claim their drinking water was contaminated by the company’s gas exploration and drilling activities in Horseheads, NY.
BLM Sued over Plan for Development in Montana National Monument
The Western Environmental Law Center (WELC) on behalf of the Montana Wilderness Association has filed a lawsuit in federal court in Montana against the Bureau of Land Management (BLM), which has issued a new management plan that calls for recreational boating, oil and natural gas development, transmission lines and pipelines and airstrips in a national monument in the north-central part of the state.
Kern River Shippers Warned of Coming California GHG Fee
Kern River Gas Transmission Co. told shippers that they should brace for the possible collection of greenhouse gas (GHG) emissions fees by the pipeline on behalf of the California Air Resources Board (CARB), which needs the money to fund implementation of the state’s Global Warming Solutions Act, or Assembly Bill (AB) 32.
LDC Procurement Incentives Can Be Fraught With Conflict
It sounds simple: to lower the price consumers pay for natural gas, give the local distribution company (LDC) incentives for saving money when it buys the gas on consumers’ behalf.
