Black

People have been calling oil “black gold” at least since the days of Beverly Hillbilly Jed Clampett. Today, though, it really is; and that fact marks the multi-billion-dollar migration of investors from equities to commodities that has helped bring a bit of chaos to the energy trading patch.

Southeast Gas Storage LLC (SGS), an affiliate of El Paso Corp.’s Tennessee Gas Pipeline Co., has launched a nonbinding open season for its proposed Black Warrior Storage Project, a greenfield underground natural gas storage facility to be located in northeastern Mississippi. The proposed storage facility would have a total working natural gas capacity of 20 Bcf and provide for a three-turn service. The project would interconnect with Tennessee’s 500 Line, downstream of its Columbus Compressor Station in Zone 1, through a new 24-inch diameter pipeline. Based on the initial project design, the high-deliverabiity, multi-cycle facility would provide up to 333 MMcf/d injection rates and 375 MMcf/d withdrawal rates. The open season would allow SGS to evaluate the market interest, economics and design parameters for the project, the company said. Based upon the results of the open season, SGS said it would determine the project’s scope and whether to proceed with a binding open season. With enough market interest, SGS said it expects to file the project with the Federal Energy Regulatory Commission in May and would request authority to charge market-based rates. The proposed in-service date is June 2010. SGS noted that even though the open season is nonbinding, only bids received during the subscription period for the open season would be guaranteed consideration for service in the project. The open season will end at 4 p.m. CDT on May 14. Project details are available here or by contacting Sital Mody at (713) 420-4336, Stuart Neck at (713) 420-2230 or Heath Deneke at (713) 420-3812.

Southeast Gas Storage, LLC (SGS), an affiliate of El Paso Corp.’s Tennessee Gas Pipeline Co., on Monday launched a nonbinding open season for its proposed Black Warrior Storage Project, a greenfield underground natural gas storage facility to be located in northeastern Mississippi.

Government desire to erase a political black mark and the efforts of a consumer champion have come together to open a natural gas can of worms in Alberta. The coincidence has spawned a regulatory case to answer a tricky question: Who should pay the freight for delivering gas to the “core market” of residential, commercial and public service users such as hospitals and schools?

Government desire to erase a political black mark and the efforts of a consumer champion have come together to open a natural gas can of worms in Alberta. The coincidence has spawned a regulatory case to answer a tricky question: Who should pay the freight for delivering gas to the “core market” of residential, commercial and public service users such as hospitals and schools?

Diversified energy and utility holding company Black Hills Corp. said Wednesday that CFO Mark Thies resigned for “personal considerations and health” effective Friday. CEO David Emery will fill in as CFO for an interim period. Emery said the Rapid City, SD-based company has retained an executive search firm to assist in identifying a replacement for Thies, who had been with the company 10 years. The company has retail and wholesale utility and merchant energy businesses in South Dakota, Wyoming, Montana and other states.

The Canadian subsidiary of Dallas-based Pioneer Natural Resources Co. has signed a definitive agreement to sell its Martin Creek, Conroy Black and Lookout Butte oil and gas properties to Ketch Resources Ltd. for $207 million. The transaction is expected to close by May 31.

The Canadian subsidiary of Dallas-based Pioneer Natural Resources Co. has signed a definitive agreement to sell its Martin Creek, Conroy Black and Lookout Butte oil and gas properties to Ketch Resources Ltd. for $207 million. The transaction is expected to close by May 31.

Fortuna Energy Inc. has drilled two successful Black River gas wells in the Appalachia, the first two operated wells of its recently acquired New York properties. The Talisman Energy Inc. subsidiary said the first well, Fortuna Ganung Hz, tested a non-producing structure in Schuyler County. Despite some operational problems, the well still tested at rates up to 2.4 MMcf/d, and plans are under way to tie the well into a local gathering system. The second well, Fortuna Konstantinedes Hz, was drilled in Chemung County. After completion, the well flowed at rates up to 10.4 MMcf/d and is currently shut-in for a pressure buildup test. Work is under way to have the well tied into the Columbia high-pressure transmission system by the end of the year. The third well, Hepfner, is currently drilling. Two additional rigs also are being mobilized, and a fourth well is expected to spud in September and another in mid-October. Additional projects under way include the installation of three compressors, all expected to be on stream by year’s end and the tie-in of the Fortuna Pace well, which should be on stream in early 2004 at a rate of 5 MMcf/d. Fortuna’s production in July was 67 MMcf/d, and it plans to spend US$46 million in the area in 2003, drilling eight wells.