Industry Brief

Clayton Williams Energy Inc. (CWEI), an independent energy company based in Midland, TX, has entered into an agreement with Chesapeake Exploration LLC in the Delaware Basin oil play. Under the terms of the agreement, CWEI can earn 75% interest in leases held by Chesapeake on about 75,000 net acres in southern Reeves County, TX. CWEI will drill at least 20 earning wells in the first year and have an option to drill an additional 20 wells per year during the next four years to earn all of Chesapeake’s acreage. CWEI will also carry Chesapeake for one-quarter of the costs in earning wells, which will earn CWEI a 75% interest in 640 net acres. Subsequent wells in an earned area will be drilled on a heads-up basis. CWEI will receive credit towards its annual drilling obligations for drilling more than 20 earning wells in any year.

March 28, 2011

Environmentalists Push for Fracking Ban in New York

A group of more than 40 environmental organizations, including the National Resources Defense Council, Delaware Riverkeeper Network and the Atlantic Chapter of the Sierra Club, is calling on the New York State Assembly to approve legislation that would place a moratorium on hydraulic fracturing (fracking) in the state’s Marcellus and Utica shales until May 15, which is when further environmental studies by the Environmental Protection Agency are expected to be completed.

November 30, 2010

NorthWestern Makes $23M Final Bankruptcy Settlement

NorthWestern Energy Corp., the South Dakota-based energy holding company, announced last Thursday that the U.S. Bankruptcy Court for the District of Delaware has approved its settlement with Magten Asset Management, Law Debenture Trust Company of New York and holders of quarterly income preferred securities, marking the end of the last major disputed claim in its 2003 Chapter 11 proceedding.

July 15, 2008

Expansion to Serve Delmarva Peninsula Given Green Light

Eastern Shore Natural Gas (ESNG), a subsidiary of Chesapeake Utilities, received FERC approval for a $33.6 million, 36% increase (47,450 Dth/d) in its pipeline capacity in Delaware and Pennsylvania in 2006, 2007 and 2008. The project will add 55 miles of pipeline looping and two new delivery points.

June 20, 2006

Calpine Asks Court for 90 Days to Respond to Adverse Ruling; Bankruptcy an Option

Fresh from a shakeup at the top of its debt-plagued organization, San Jose, CA-based Calpine Corp. Thursday said it has asked the Delaware Chancery Court for 90 days to restore only part of the $313 million in natural gas asset sales proceeds that the court last month ruled had been misappropriated by the troubled power plant developer/operator. The court’s Vice Chancellor Leo Strine had ordered that the funds be restored to a special account earmarked for senior bondholders. Calpine said it is continuing to evaluate its options, including the possibility of filing for bankruptcy.

December 2, 2005

Bondholders Sue to Block Mirant Debt Restructuring Plan

A group of bondholders of a Mirant Corp. generation subsidiary have filed a lawsuit in Delaware Chancery Court against Mirant in an attempt to derail the debt restructuring plan the company announced earlier this month to avoid bankruptcy.

June 16, 2003

Injunction May Slow Unocal Offer for Remaining Shares of Pure Resources

The Delaware Chancery Court has issued a preliminary injunction that may prevent Unocal Corp. from completing an offer to exchange the common stock shares of Pure Resources Inc. Unocal subsidiary Union Oil Company of California already owns 65% of Pure, and it launched its exchange offer last month to acquire the remaining 35% (see Daily GPI, Sept. 6).

October 3, 2002

Magnum Hunter Picks Up New Mexico Reserves

Magnum Hunter Resources Inc. on Monday closed its $31.3 million deal announced a month ago to buy the Delaware Basin oil and gas reserves and related assets of Denver-based Mallon Resources Corp. (see Daily GPI, Aug 14). The properties had proved reserves of 41.8 Bcfe on Dec. 31, 2000, and include Mallon’s interest in 23 fields with 141 producing wells and 13,741 net acres.

September 18, 2001

Ohio Bill Would Bolster Columbia’s Defense

A day after a Delaware Judge dismissed one of three NiSourcelawsuits against Columbia Energy Group, NiSource suffered yetanother setback in its battle for a hostile takeover of Columbia.Ohio State Representative David Goodman (R-Bexley), who already haspublicly opposed the merger, has introduced legislation designed toclose a loophole in Ohio law that would allow hostile takeovers ofgas utilities to take place without public review and scrutiny.Goodman was joined as sponsor of the legislation by 77 of the 99members of the Ohio House of Representatives.

September 24, 1999

Old Dominion Seeking Peaking Power

Old Dominion Electric Cooperative of Glen Allen, VA, issoliciting bids for peaking power for its 12 distributioncooperatives in Delaware, Maryland and Virginia and alternativelyis considering construction of new generation stations.

September 3, 1999