Date

With Florida citygate prices peaking at $14 on the Aug. 4 trading date and staying well above the rest of the market since mid-June, FERC said it is aware of the situation but believes “extenuating circumstances” in the state explain the price run-up.

Natural gas price hedges have played a big part in sustaining the onshore rig count to date, but that may not be the case in 2011, Barclays Capital analysts said this week. What may be key, they said, are 2011 forward prices.

With Florida citygate prices peaking at $14 on the Aug. 4 trading date and staying well above the rest of the market since mid-June, FERC said it is aware of the situation but believes “extenuating circumstances” in the state explain the price run-up.

Interior Secretary Ken Salazar Monday issued a new moratorium on deepwater drilling in the Gulf of Mexico (GOM) that, unlike the initial moratorium, gives a date-certain for when it would end — Nov. 30.

British Columbia’s September oil and gas rights sale resulted in more than C$8.7 million in bonus bids, bringing the calendar year to date to C$330.6 million, the Ministry of Energy, Mines and Petroleum Resources said. The sale offered — and sold — 34 parcels covering 15,885 hectares at an average price of C$549/hectare. The top bids included three drilling licenses and two leases in the Graham River area, about 50 kilometers northwest of Hudson’s Hope, that sold for a total of C$4.5 million. Bids ranged from C$1,425 to C$2,168/hectare. Two leases also were sold in the Horn River Basin, about 15 kilometers west of the Cabin Gas Field, for a total of more than C$837,620. Drilling licenses have primary terms of two, three or four years, depending on the location. Leases acquired at the Crown sale have primary terms of five or 10 years, also depending on the location. The next sale, scheduled for Oct. 21, 2009, is expected to offer 62 parcels covering 66,837 hectares. Results from the September sale are available at: www.em.gov.bc.ca/Subwebs/landsale/results/default.htm.

Nearly one year to the date that the Federal Energy Regulatory Commission approved the project, the 500-mile Midcontinent Express Pipeline (MEP) went into full operation last week (see NGI, Aug. 4, 2008).

Rockies Express Pipeline (REX) Thursday pushed back the in-service date of interim delivery points on REX-East to the second half of June. Previously REX said service would begin in the first half of June (see Daily GPI, May 18).

Rockies Express Pipeline (REX) has pushed back the in-service date of interim delivery points on REX-East to the second half of June. Previously REX said service would begin in the first half of June (see NGI, May 18). REX said it anticipates commencing service on REX East to Lebanon, OH, in mid to late June. The pipeline affirmed its projection for service to Clarington, OH, on Nov. 1. Initial service to Lebanon is expected to offer capacity of 1,600 MDth/d, which is expected to increase to 1,800 MDth/d. Ultimately, 1,800 MDth/d of capacity is to be available to Clarington as well, REX said. For more information visit www.rexpipeline.com, “Rockies Express — East,” “REX-East — Informational Posting.”

Williams is moving into the Marcellus Shale play in a midstream joint venture (JV) with Atlas Pipeline Partners LP. Under the JV, Williams plans to help Atlas trim its debt in exchange for a 51% piece of the pipeline’s existing Appalachian Basin gathering system, which includes 1,800 miles of intrastate gathering lines serving 6,900 wells.