Canyon

The prolonged leak of a well at the Southern California Gas Co. (SoCalGas) Aliso Canyon underground natural gas storage field has left the industry, state regulators and the multi-billion-dollar Sempra Energy utility in the cross-hairs of climate change activists like the Environmental Defense Fund (EDF), whose representatives on Friday called for a re-evaluation of the future role of natural gas in the nation’s energy mix.

Sempra Energy’s Southern California Gas Co. (SoCalGas) and the regional air pollution regulators have agreed to pursue a plan to capture and burn at least part of the escaping emissions at SoCalGas’ two-month-old natural gas storage well leak on the northern suburban fringe of Los Angeles (see related story), following an all-day public hearing last Saturday in the Porter Ranch residential area impacted by the leak.

Buyers weren’t taking any chances Friday in acquiring supplies of weekend and Monday gas. Weather forecasts called for a frosty start to the week, and in major eastern markets restrictions helped boost prices by close to $1.

Local radio talk show hosts and elected officials on Thursday toured Southern California Gas Co.’s (SoCalGas) Aliso Canyon underground storage field where a gas well leak is now two-months old. At the same time, efforts to plug the well and keep the 86 Bcf storage facility operating continued almost unnoticed.

Marathon Oil Corp. said Monday it is selling most of its operated and nonoperated properties in the Gulf of Mexico (GOM) to an undisclosed buyer for $205 million.

Williams Partners LP and DCP Midstream Partners LP have brought online ultra-deepwater Gulf of Mexico (GOM) natural gas pipeline infrastructure about 300 miles south-southwest of New Orleans.

Canyon Midstream Partners LLC has signed separate gathering and processing agreements with Apache Corp. and XTO Energy Inc. for midstream services on its James Lake system in the Permian Basin, the company said Thursday.

Arroyo Midstream Partners LLC, a unit ofCanyon Midstream Partners LLC, andGoodrich Petroleum Co. LLChave struck an agreement for acreage in Louisiana and Mississippi that is prospective for the Tuscaloosa Marine Shale (TMS). Arroyo is currently providing Goodrich with wellhead gas processing services at two recently completed wells in southwestern Mississippi and expects to add gas processing facilities to process gas volumes from an additional two wells by the end of 2013. Goodrich recently said it is stepping up its activity in the TMS (seeShale Daily,Aug. 8). The wellhead processing approach allows Canyon, through Arroyo, to participate in the delineation phase of exploration and production projects and share formation risk with its partner. Arroyo is a joint venture of Canyon andGas Processors Inc.”The partnership of Canyon and GPI is a unique combination of engineering, operational and local expertise to provide producers with the midstream services required for the development of acreage in the TMS,” said Canyon President Michael Walsh.

Bill Barrett Corp.’s Dry Canyon compressor station in the West Tavaputs gas field in the Uinta Basin in northeast Utah suffered extensive fire damage last week and will require “significant repairs” to return to service, the company said.