Clarification

The Pennsylvania Public Utility Commission (PUC) voted unanimously on Thursday to clarify several portions of Act 13, the state’s omnibus Marcellus Shale law, as to how it pertains to levying an unconventional natural gas drilling impact fee.

A coalition of four energy associations has requested that the Commodity Futures Trading Commission (CFTC) provide clarification guidance for a rule establishing limits on speculative positions in 28 core physical commodity contracts, including four energy contracts, which is due to go into effect in September.

The Department of Justice (DOJ) filed a petition Tuesday seeking clarification of a recent appellate court decision that vacated and remanded the existing five-year Outer Continental Shelf (OCS) leasing plan for 2007-2012 (see Daily GPI, April 20). The decision has the potential to upset the current leasing schedule and raises questions about oil and gas leases that have already been completed under the plan.

Upon clarification by Calypso U.S. Pipeline LLC, FERC earlier this month reversed its position in a January order and said the company could proceed with the construction of 10 miles of its proposed offshore Florida pipeline when an affiliate’s proposed deepwater liquefied natural gas (LNG) port, with which it would interconnect, obtains a green light from the U.S. Maritimes Administration (MARAD).

Upon clarification by Calypso U.S. Pipeline LLC, FERC Friday reversed its position in a January order and said the company could proceed with the construction of 10 miles of its proposed offshore Florida pipeline when an affiliate’s proposed deepwater liquefied natural gas (LNG) port, with which it would interconnect, gets the green light from the U.S. Maritimes Administration (MARAD).

Work on the C$7 billion ($5.6 billion) Mackenzie Gas Project was suspended on Thursday, with its sponsors calling time out to seek clarification of industry, government and aboriginal roles in Canadian northern development.

FERC last week moved to provide guidance and clarification related to the elements of filings made by regional transmission organizations (RTOs) in response to a decision issued by the U.S. Court of Appeals for the District of Columbia Circuit.

Cabot Oil and Gas took issue with the negative way in which it’s 2002 financial and performance results were characterized in a story that ran in Daily GPI on Feb. 25. Although Cabot’s net income per share declined to 65 cents last year from $1.71 the prior year, its fourth quarter net income per share was up to 36 cents from to a loss in 4Q2001 of 34 cents. The company also showed strong performance results. “When you look at year over year, it was not as good as the year before in terms of dollars. But in terms of production, we produced a double digit production jump of 12%, we had our second highest level of discretionary cash flow and we reduced debt by $28 million,” said Cabot spokeswoman Karin Thorton. “Those are all positive.” Lower realized commodity prices were the main factor in the decline in reported results, the company said. Its average realized natural gas price fell more than 30% in 2002 to $3.02/Mcf compared to an average realization of $4.36/Mcf in 2001. Oil prices declined from $24.91 to $23.79 per barrel. For 2002, Cabot reported equivalent production of 91.1 Bcfe, compared to 81.1 Bcfe produced in 2001.

In an order on clarification, FERC said that its recent decision denying privileged treatment for information submitted under the Outer Continental Shelf Lands Act (OCSLA) extended to all offshore transportation providers, as well as to most types of information.