Adding to its stable of production plays, Denver-based PRB Energy Inc. said it is acquiring 13 natural gas wells and 330,000 net acres in the Denver-Julesburg Basin of northeastern Colorado and southwestern Nebraska. Terms of the deal and the seller’s identity were not disclosed.
Colorado
Articles from Colorado
Transportation Notes
Wyoming Interstate Gas Co. and Colorado Interstate Gas Co. declared a Force Majeure due to third party damage of the WIC pipeline just west of the CIG/WIC Cheyenne compressor station (see related story). All transport volumes on WIC through Laramie Station have been shut in and will be scheduled to zero until further notice. Transportation through the Medicine Bow lateral will not be affected. CIG has 246 MMcf/d of capacity on the WIC system and that volume along with all other WIC volumes moving through Laramie WIC station is being affected.
CIG Fort Morgan Storage Field Springs Leak; 13 Residences Evacuated
Colorado Interstate Gas (CIG) personnel early last week had to secure a leaking well at the 8.5 Bcf Fort Morgan storage field in Morgan County, CO, but gas from the storage facility, which is a depleted oil and gas field, continued to migrate to the surface at “various locations.” Storage operations at the field have been shut down indefinitely, leading the pipeline to declare a strained operating condition with limited storage withdrawal capability.
Transportation Notes
Forecasted weather for the next few days indicates colder than normal temperatures in the Front Range of Colorado, CIG said. With the Fort Morgan Storage Field in Morgan County, CO, shut in due to a well leak (see Daily GPI, Oct. 25), the pipeline has its storage withdrawal capability reduced by about 51%. Storage customers have 49% of their ADWQ (Average Daily Withdrawal Quantity) available until further notice and should adjust flowing supplies to ensure that withdrawals remain at or below their revised contractual limits, CIG said. Additionally, CIG will not be able to approve payback nominations from the pipeline. A spokesman said Thursday the number of area families evacuated due to the leak had risen to 13, and some (but not all yet) were being allowed to return to their homes on a case-by-case basis. There is no projection for when repairs to the well will be completed and service restored at the Fort Morgan field, he said.
Forecasters Continue Downgrade of 2006 Atlantic Hurricane Season
Joining the ranks of other experts such as Colorado State University (CSU) forecasters William Gray and Philip Klotzbach who have been recently slashing their 2006 Atlantic hurricane activity predictions, Andover, MA-based WSI Corp. downgraded its outlook last week for the second time in two months. WSI said it now expects the tropical season to have 13 named storms, six hurricanes and three intense hurricanes (Category 3 or greater).
Industry Briefs
El Paso Corp.’s Colorado Interstate Gas Company (CIG) subsidiary said Wednesday that it has received Federal Energy Regulatory Commission (FERC) approval of its general rate case, which establishes rate certainty for its customers through September 2010. CIG filed a negotiated settlement of its rate case before making a filing under Section 4 of the Natural Gas Act. “We are very proud of the support we received from our customers regarding this rate case settlement,” said Jim Cleary, president of El Paso’s Western Pipelines. “To achieve an uncontested settlement, especially prior to the filing of the case, is a terrific accomplishment.” CIG said the rate case settlement preserves the status quo as to services on the its system, with rate levels for several of those services increasing only modestly since the last rate change five years ago.
Marathon Acquires Piceance Basin Acreage for $354M
Marathon Oil Corp. last week acquired 8,700 net acres of natural gas-weighted properties in the Piceance Basin of Colorado in a cash transaction valued at $354 million. The acreage, acquired from Petroleum Development Corp. (PDC), is located in Garfield County in the Greater Grand Valley Field Complex, which is flanked by, and on-trend with, adjacent Marathon production.
CIG Holds Open Seasons for North Mainline Capacity, Expansion
Colorado Interstate Gas (CIG) is holding three open seasons to test market interest in existing transportation capacity in Wyoming, capacity from a proposed interconnection with Overthrust Pipeline near Kanda, WY, and a proposed expansion of the CIG mainline from Opal, WY, to the Tomahawk interconnection with Kinder Morgan’s Trailblazer pipeline system.
Marathon Acquires Piceance Basin Acreage for $354M
Marathon Oil Corp. on Thursday bought 8,700 net acres of natural gas-weighted properties in the Piceance Basin of Colorado in a cash transaction valued at $354 million. The acreage, acquired from Petroleum Development Corp. (PDC), is located in Garfield County in the Greater Grand Valley Field Complex, which is flanked by, and on-trend with, adjacent Marathon production.
CIG Holds Open Seasons for North Mainline Capacity, Expansion
Colorado Interstate Gas (CIG) is holding three open seasons to test market interest in existing transportation capacity in Wyoming, capacity from a proposed interconnection with Overthrust Pipeline near Kanda, WY, and a proposed expansion of the CIG mainline from Opal, WY, to the Tomahawk interconnection with Kinder Morgan’s Trailblazer pipeline system.