Birmingham

A Birmingham, AL-based developer Friday got the initial environmental go-ahead for its proposal to build salt dome natural gas storage facilities in Chambers and Liberty counties, TX.

Birmingham, AL-based Energen Resources Corp. signed a farmout agreement with Chesapeake Energy Corp. last Monday, setting aside a 50% stake in its 200,000-acre lease position in various shale plays in Alabama for $75 million in cash and a carried drilling interest.

Birmingham, AL-based Energen Resources Corp. signed a farmout agreement with Chesapeake Energy Corp. Monday, setting aside a 50% stake in its 200,000-acre lease position in various shale plays in Alabama for $75 million in cash and a carried drilling interest.

In an effort to lock in high commodity prices, Energen Corp. has increased its 2007 and 2008 hedge positions for natural gas, oil and natural gas liquids (NGL). The Birmingham, AL-based holding company said it sold New York Mercantile Exchange (Nymex) contracts and swaps on the output of its oil and natural gas development subsidiary Energen Resources Corp.

Birmingham, AL-based producer Energen Resources increased its hedge position to include another 3.6 Bcf of gas production at a price of $6/MMBtu and 240,000 bbl of sour crude at an average Nymex price of $33.98/bbl. The company now has prices locked in for 41% of its 2005 gas production and 40% of its 2005 crude oil production.

Sonat said Monday it has returned three compressor units to service at the Tarrant Station in Birmingham, AL since a flooding-related unscheduled outage occurred at the station last week (see Daily GPI, May 9). Repairs are continuing on the remaining units. Nominations for interruptible service (B-1 and IT) on the North System in Zones 2 and 3 remain at risk until all Tarrant units are operating again. Sonat also said it had returned three of four units to service Sunday night at the Bear Creek Storage Field in North Louisiana after they experienced an unscheduled outage over the weekend. A repair plan is being developed for the fourth unit. No impact on firm storage service is expected, but Sonat might be unable to schedule all nominations for interruptible services that rely on available storage injection capacity. A force majeure issued Friday in conjunction with discovery of a leak at Main Pass 296 was canceled Saturday.

Sonat reported Wednesday experiencing an unscheduled outage of the Tarrant Compressor Station in Birmingham, AL, due to flooding. No interruption to firm service was expected, but Sonat said it might not be able to accept all nominations for interruptible service (B-1 and IT) on the North System in Zones 2 and 3 until further notice.

Much as it did last week (see Daily GPI, Jan. 2), Sonat implemented an OFO Type 3 Monday for eight market-area groups on its system (Birmingham Group, South Main Zone 2, Atlanta Group, South Main Zone 3, East of Wrens, South Georgia-Lee County, Brunswick Group and Savannah Group). The pipeline also resumed allocations of interruptible capacity in the Chattanooga Group, East Tennessee Group and North Alabama Group.

Five groups on the Sonat system (Birmingham Group, South MainZone 2, Atlanta Group, South Main Zone 3 and East of Wrens) becamesubject to an OFO Type 3 Monday.