Department

A federal appeals court in Washington, D.C. last week orderedthe Department of Interior to repay ExxonMobil and USX-MarathonGroup’s Marathon Oil Co. $78 million each for reneging on leaseagreements the companies signed in 1981 to drill off the coast ofNorth Carolina.

El Paso Natural Gas has received approval from the U.S. Departmentof Transportation’s Office of Pipeline Safety (OPS) to conduct moreinternal inspections on its rebuilt New Mexico pipeline, whichruptured August 19 killing 11 people (see Daily GPI, Aug. 22). Since the explosion, flowsthrough the line, which runs from West Texas to California, have beenreduced to 85% capacity, or about 920 MMcf/d.

The Department of Energy’s National Energy Technology Laboratory(NETL) through its Strategic Center for Natural Gas released asolicitation for proposals to improve the reliability of thenation’s natural gas infrastructure. NETL expects to fund researchand development projects totaling up to $10 million over athree-year period through this solicitation. Multiple awards areanticipated with industrial participants expected to contribute atleast 35% of each selected project’s cost. The proposals are due byJan. 9, 2001. The solicitation is available at the NETL web sitehttp://www.netl.doe.gov/business/solicit/index.html . For moreinformation, contact David J. Anna, (412) 386-4646, or e-mail:anna@netl.doe.gov .

El Paso Natural Gas has received approval from the U.S. Department of Transportation’s Office of Pipeline Safety (OPS) to conduct more internal inspections on its rebuilt New Mexico pipeline, which ruptured August 19 killing 11 people (see NGI, Special Report). Since the explosion, flows through the line, which runs from West Texas to California, have been reduced to 85% capacity, to a rate of about 920 MMcf/d.

The Department of Interior’s Minerals Management Service (MMS)must carefully examine the option of including promising areas inits new 5-year leasing plan that have been subject to moratoria inthe past, the National Ocean Industries Association (NOIA) said.

If the Wyoming Department of Environmental Quality slows downthe permit approval process for companies eager to begin coal bedmethane projects in the state, the largest producers already thereare expected to have no trouble meeting their drilling schedulesthrough at least the first quarter of 2001. Anticipating thehearings, many had already moved proposed drilling projects for2001 through the regulatory process.

If the Wyoming Department of Environmental Quality slows downthe permit approval process for companies eager to begin coal bedmethane projects in the state, the largest producers already thereare expected to have no trouble meeting their drilling schedulesthrough at least the first quarter of 2001. Anticipating thehearings, many had already moved proposed drilling projects for2001 through the regulatory process.

In news from the “no surprise” department last week, third quarter earnings for three major U.S. oil companies – ExxonMobil, Chevron and Texaco – handily surpassed analysts’ expectations on the wave of surging oil and gas prices. ExxonMobil beat predictions by six cents, Texaco beat the estimates by 12 cents and Chevron also soared, rolling over an expected earnings forecast by 54 cents.

National Fuel Gas Co. announced last week that it has reached arate settlement agreement with the staff of the Department ofPublic Service, the Consumer Protection Board and multiple otherinterveners. The New York Public Service Commission approved theagreement at its regular session on Oct. 11.