Contiguous

Linn Energy LLC has agreed to pay $175 million for 19,800 contiguous net acres in East Texas that it said will provide about 24 MMcfe/d of production, weighted 97% to natural gas. The deal is expected to close by May 1.

Rex Energy Corp. is past the halfway point in its Marcellus Shale work plan but now needs a new CEO to guide the second half.

Because of changes in forecasted temperatures, Southern Natural Gas will implement an OFO Type 6 for short imbalances on its contiguous system effective Thursday until further notice. “In order to maintain the operational integrity of Southern’s system, it is essential that shippers and poolers remain in balance (including their available no-notice withdrawal entitlements),” the pipeline said. Tiered penalties will apply to negative imbalances exceeding 2% or 200 Dth, whichever is smaller.

Weather related stories were big news in 2007, with heat and drought scorching the South and Southeast, wildfires burning their way through southern California and global warming worries worldwide, but perhaps the biggest weather story of the year was the Atlantic hurricane season that wasn’t.

Unless there is a drastic turn in the weather in the closing days of the year, 2007 will be one of the 10 warmest years the contiguous United States has experienced since national records began in 1895, according to preliminary data from the National Oceanic and Atmospheric Administration’s (NOAA) National Climatic Data Center. The global surface temperature for 2007 is expected to be the fifth warmest since worldwide records began in 1880, NOAA said.

Unless there is a drastic turn in the weather in the closing days of the year, 2007 will be one of the 10 warmest years the contiguous United States has experienced since national records began in 1895, according to preliminary data from the National Oceanic and Atmospheric Administration’s (NOAA) National Climatic Data Center. The global surface temperature for 2007 is expected to be the fifth warmest since worldwide records began in 1880, NOAA said.

Southern Natural Gas is implementing an OFO Type 6 Thursday for short imbalances on its contiguous system. Tiered penalties of $1-15/Dth will be assessed for negative imbalances that exceed a threshold of 2% or 200 dekatherms. Penalties will not apply to long imbalances.

Sonat is implementing an OFO Type 6 Tuesday. Tiered penalties ranging from $1/Dth to $15/Dth will apply to net short imbalances on its contiguous system exceeding a tolerance of 2% or 200 dekatherms, whichever is less. In addition, Sonat notified shippers in several system groups Sunday that it would be allocating/limiting interruptible capacity starting either Monday or Tuesday, depending on the group. See the bulletin board for details.

Sonat is implementing an OFO Type 6 Tuesday. Tiered penalties ranging from $1/Dth to $15/Dth will apply to net short imbalances on its contiguous system exceeding a tolerance of 2% or 200 dekatherms, whichever is less. In addition, Sonat notified shippers in several system groups Sunday that it would be allocating/limiting interruptible capacity starting either Monday or Tuesday, depending on the group. See the bulletin board for details.