Changes

Changes to Louisiana law that would tax the lateral portions of horizontal wells have the state’s producer community ready to fight, but parish tax assessors say laterals should have been taxable all along.

Changes to Louisiana law that would tax the lateral portions of horizontal wells have the state’s producer community ready to fight, but parish tax assessors say laterals should have been taxable all along.

It might seem that the Eagle Ford and Marcellus shales are being developed at breakneck speed, but it’s important to remember that these are the early days in two resource plays that will be natural gas breadbaskets for the nation in the decades to come.

Spokane, WA-based Avista Utilities faces changes for two rate credits in its purchased gas and power mechanisms that could result in slight increases for fuel purchasing costs, effective Nov. 1. A purchased gas cost adjustment and a power credit with Bonneville Power Administration (BPA) emerged following rate hikes approved by the Idaho Public Utilities Commission, which allows retail power charges to increase by 9.25% over three years and natural gas retail charges to rise 2.6% over two years. An initial power rate increase of 3.59% and a natural gas hike of 1.9% went into effect Oct. 1. Avista is proposing an average 4.3% increase for its Idaho gas customers, an average of about $2.75/month for a typical residential customer. The electric adjustment is due to BPA reducing the size of the federal power credit.

Supplies of natural gas are expected to be bountiful this winter, with much of the gas coming from domestic sources (such as shales), which will lead to a relatively stable market this winter, according to two major winter forecasts released by the Natural Gas Supply Association (NGSA) and the American Gas Association (AGA) last week.

Price changes continued to be mixed for a second straight day Tuesday, but slight downturns remained slightly dominant. A small retreat of high temperatures coming Wednesday in parts of the South, along with mild forecasts for the Northeast, Midwest/Midcontinent and Rockies, were abetted by the previous day’s decline of about a nickel by September futures in sending a small majority of cash points lower.

El Paso Corp. has announced management changes within its Pipeline Group, effective Aug. 1. Daniel B. Martin, currently senior vice president (SVP) of Operations, is to become SVP of Pipeline Safety, a newly created position. Martin will be responsible for leading the Pipeline Group’s pipeline safety and integrity initiatives, as well as the company’s outreach to regulatory agencies. Bryan W. Neskora, currently SVP and chief commercial officer (CCO) for Tennessee Gas Pipeline Co. (TGP), will take over as SVP of Operations. Norman G. Holmes, SVP and CCO for Southern Natural Gas (SNG), has been named president of SNG and TGP.

No significant changes have been made to a provision in the financial regulatory bill that would require major banks to spin off their swap desks, according to a spokeswoman for the Senate Agriculture Committee.

Canadian natural gas exporters are off to a weak start on the new international contract year as volumes, prices and revenues continue the trade’s slide in its last 12-month period ending Oct. 31.