December

Acknowledging that customers’ natural gas bills could be going up in difficult times, Virginia’s State Corporation Commission (SCC) in late December approved a conservation and rate decoupling plan for Virginia Natural Gas (VNG) that provides incentives for residential customers to reduce consumption. VNG is guaranteed a certain level of revenue under the approved rate decoupling plan whether or not customers use less gas.

Denver-based St. Mary Land & Exploration Co. in December reduced planned capital expenditures (capex) in 2009 by 54% compared with spending levels this year to keep “at or within” internally generated cash flow, the CEO said. Also announcing cutbacks in 2009 capex plans were three more onshore-focused producers: Delta Petroleum Corp., TXCO Resources Inc. and Compton Petroleum Corp.

Delivering a pre-holidays gift to the state’s consumers, the Wisconsin Public Service Commission (PSC) in mid-December ordered keeping electric rates unchanged and decreasing retail natural gas rates for two utilities — Wisconsin Public Service Corp. (WPS) and Wisconsin Power & Light (WP&L). The changes are effective Thursday with the start of the new year.

Questar Pipeline Co. and Enterprise Products Operating LLC said earlier in December they have begun operating their joint venture 2.5 Bcf/d White River Hub in Rio Blanco County, CO, connecting the Enterprise natural gas processing plant at Meeker with four interstate pipelines in the area. The partners announced last year their desire to create a header system for taking Rockies supplies to both western and eastern markets.

After December futures gave back 34.7 cents on Thursday, bearish traders looking to capitalize on the momentum on Halloween felt more tricked than treated. Whether it was a result of bearish weather fundamentals weakening or just traders playing the recent range, the front-month contract ended up closing at $6.783 on Friday, up 35.2 cents from Thursday and 32.1 cents higher than the previous week’s close.

Warmer-than-normal temperatures will dominate in the Northeast from September through November, while cooler-than-average conditions will be in place in parts of the Southeast and along the Pacific Coast, according to forecaster WSI Corp. of Andover, MA.

Williston Basin Interstate Pipeline Co. (WBI), a subsidiary of MDU Resources Group, plans to expand its Grasslands Pipeline by up to 40 MMcf/d, it said Tuesday.

Starting December off with a bang, the Minerals Management Service (MMS) announced last week that Western Gulf of Mexico Oil and Gas Lease Sale 204 was a success with accepted high bids valued at more than $287 million. The government agency also released fiscal year 2007 (FY2007) revenue collection and disbursement amounts.

Starting December off with a bang, the Minerals Management Service (MMS) announced Tuesday that Western Gulf of Mexico Oil and Gas Lease Sale 204 was a success with accepted high bids valued at more than $287 million. On Monday, the government agency also released fiscal year 2007 (FY2007) revenue collection and disbursement amounts.