California regulators have approved a one-time contractual waiver to allow Chevron Corp. to lower its obligation for capacity on Sempra Energy’s Southern California Gas Co. (SoCalGas) backbone natural gas transmission system by 9,000 Dth/d. The waiver is effective through the end of Chevron’s three-year contract with SoCalGas on Sept. 30, 2014. Involved in the case is Chevron’s role as a California gas producer delivering up to 25,000 Dth/d into the SoCalGas system. Chevron’s total capacity on the SoCalGas system will drop to 16,000 Dth/d. The change was necessitated when the gas utility was forced to close one of the interconnecting pipelines used by Chevron in 2011 because of demands from the owner of the pipeline right-of-way. Since that time, SoCalGas decided it would not build a replacement line, forcing Chevron to lower the capacity volumes covered in its multi-year contract.
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Chesapeake to Renegotiate 4,400-Plus New York Natural Gas Leases
In a landmark agreement announced Thursday, a drilling unit of Chesapeake Energy Corp. will allow more than 4,400 New York landowners locked into natural gas leases the opportunity to renegotiate their contracts, said New York Attorney General Eric T. Schneiderman.
Ohio AG Urged to Investigate Bizarre ‘Talking Points’
Three Ohio legislators have asked the state’s attorney general to determine the source of a five-page document that, if authentic, could prove individuals connected to the energy industry are using deceptive practices to persuade property owners to sign oil and gas leases.
Chesapeake Dropping Down Haynesville Gathering System
Chesapeake Midstream Partners LP has agreed to acquire the Spring Ridge gas gathering system and related facilities in the Haynesville Shale from Chesapeake Midstream Development LP, a subsidiary of Chesapeake Energy Corp. (Chesapeake), for $500 million cash.
FERC Staff, Others Enter Western Energy Deal Settlements With Enron
Enron Corp. on Friday said that it has reached agreements to settle all civil and contractual claims between the company, including certain of its subsidiaries, and three parties — FERC trial staff, the city of Santa Clara, CA, and Valley Electric Association Inc.
Alaska Legislators Told North Slope Producers Contractually Obligated to Produce Gas
Oil and natural gas producers that hold leases on the North Slope have a contractual obligation to produce the gas reserves, and if they decline to market the gas for a “reasonable profit,” Alaska could take legal action against them, two outside attorneys told Alaska legislators on Wednesday.
Alaska Legislators Told North Slope Producers Contractually Obligated to Produce Gas
Oil and natural gas producers that hold leases on the North Slope have a contractual obligation to produce the gas reserves, and if they decline to market the gas for a “reasonable profit,” Alaska could take legal action against them, two outside attorneys told Alaska legislators on Wednesday.
Northern Border Cinches Contract to Proceed with Midwestern Gas Extension
Northern Border Partners LP last Tuesday said it has finalized the necessary contractual commitment to proceed with the Eastern Extension Project of its Midwestern Gas Transmission (MGT) pipeline, which would extend the potential for the system to deliver Chicago-sourced natural gas to Southeast and Mid-Atlantic markets.
Northern Border Cinches Contract to Proceed with Midwestern Gas Extension
Northern Border Partners LP on Tuesday said it has finalized the necessary contractual commitment to proceed with the Eastern Extension Project of its Midwestern Gas Transmission (MGT) pipeline, which would extend the potential for the system to deliver Chicago-sourced natural gas to Southeast and Mid-Atlantic markets.
Transportation Notes
Texas Eastern (Tetco) said Friday its delivery pressures haddropped below contractual levels due to cold weather and highmarket-area takes. Thus it issued an OFO, effective at 1 p.m. CTthat afternoon, requiring that all deliveries in its M-3 zone underall rate schedules be made at a uniform hourly rate. All M-3Operational Balancing Agreements were suspended for purposes ofhourly allocations only during the OFO period, the pipeline said.Penalties for non-compliance with the OFO were $25/dth. However,late Friday afternoon Tetco said the OFO was being suspended at 9a.m. Saturday because of forecasts of a “slight” warming trend.
