Blanco

In some of the most remote areas of the state for oil/natural gas development, the U.S. Bureau of Land Management (BLM) operations in northwest Colorado on Thursday sold oil/gas leases covering 63,268 acres, garnering $1.24 million in revenues.

Questar Pipeline Co. and Enterprise Products Operating LLC said they have begun operating their joint venture 2.5 Bcf/d White River Hub in Rio Blanco County, CO, connecting the Enterprise natural gas processing plant at Meeker with four interstate pipelines in the area. The partners announced last year their desire to create a header system for taking Rockies supplies to both western and eastern markets (see Daily GPI, Aug. 28, 2007).

Louisiana Gov. Kathleen B. Blanco rapped Congress for leaving town without first passing Outer Continental Shelf (OCS) legislation that would give Gulf coastal states, including Louisiana, a bigger share of the royalties from leasing off their shores.

Superior Oil & Gas Co announced Thursday it had received a permit from the Bureau of Land Management for its pipeline right-of-way in Rio Blanco County, CO. Superior is designing a 12-inch, 18-mile gas pipeline capable of carrying up to 30 MMcf/d with a $0.60/Mcf gathering fee.”The announcement of this permit gives us another opportunity to create a revenue stream for our company,” stated Dan Lloyd, Superior’s CEO. “We continue to execute our business model through this permit and the previous agreements to purchase gas wells. In addition,we are targeting other properties and hope to inform our shareholders regarding the specifics in the near future.” Superior Oil & Gas Co., headquartered in Yukon, OK, has executed agreements to purchase over 28 gas wells in Kansas and continues to target other properties for acquisition.

Outside of Rockies numbers plummeting by 40 cents or more, and a smaller San Juan-Blanco loss of a little more than 20 cents, the cash market held up more strongly Friday than some traders had expected. Non-Rockies/San Juan quotes ranged from flat to up nearly a dime, with gains of less than a nickel most common.

Problems with the Blanco Plant’s D1 turbine (see Daily GPI, June 8) were not as severe as anticipated,El Paso said, and thus it was being returned to service Friday alongwith the rest of the plant instead of remaining down through Sunday aspreviously estimated.

El Paso returned its Blanco “D” turbine (see Daily GPI, June 1) to service Tuesdaymorning, removing a 270 MMcf/d constraint on San Juan Basincapacity. A problem with turbine vibration at Lincoln Station appearsto be under control, El Paso said, and it restored San Juan Crossovercapacity to 580 MMcf/d.

April 26-30 turbine modification at Transwestern’s BloomfieldStation on the San Juan Lateral will cut 25,000 MMBtu/d of Ignacio(CO) to Blanco (NM) capacity.