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TransCanada Corp. CEO Hal Kvisle said Friday he didn’t want to sound pessimistic about the reserves potential of the ballyhooed North American natural gas shales. “But in the grand scheme of things,” he said, “they’re just one more source of supply.”

TransCanada Corp. CEO Hal Kvisle said Friday he didn’t want to sound pessimistic about the reserves potential of the ballyhooed North American natural gas shales. “But in the grand scheme of things,” he said, “they’re just one more source of supply.”

The notice didn’t come out until Friday afternoon, but Southern California Gas declared a high-linepack OFO for Saturday, saying it would assess Buy-Back charges in accordance with its tariff to customers who delivered into its system more than 110% of their actual gas usage on the OFO day. Tennessee reported becoming aware of the need for immediate valve replacements in the West Cameron 68 Field area offshore southwest Louisiana. A force majeure will be in effect when it begins the project, tentatively scheduled for Tuesday. The work is expected to last about five days and will require the shut-in of seven West Cameron meters. Tennessee also declared force majeure Friday and said immediate repairs have become necessary on units at Compressor Station 40 in Natchitoches, LA. Restrictions may become necessary through a pro-rata portion of Secondary in the Path nominations pathed through the station, Tennessee said.

Occidental Petroleum Corp. (Oxy) has agreed to acquire the interest it didn’t already own in some Permian and Piceance basin fields from Plains Exploration and Production Co. (PXP) for $1.29 billion. The transaction frees up cash that would allow PXP to develop its joint venture with Chesapeake Energy Corp. in the Haynesville Shale (see NGI, July 7). The Oxy agreement, which is expected to close by the end of the year, follows transactions announced late last year in which Oxy paid PXP $1.55 billion for half stakes in the West Texas and Colorado plays (see NGI, Dec. 24, 2007). The Permian and Piceance assets currently have net production of around 52 MMcf/d of gas and 4,300 bbl of liquids, or 13,000 boe/d. The properties have about 92 million boe of proved reserves weighted 69% to gas. About 45% of the properties are developed. In the first six months of 2008 Oxy produced more than 50 MMcf/d in the Piceance Basin. The Los Angeles-based producer said that with the PXP purchase, gas output would grow to at least 200 MMcf/d by 2010. Oxy’s net acreage position in the Piceance Basin now totals 129,000 acres.

Occidental Petroleum Corp. (Oxy) agreed to acquire the interest it didn’t already own in some Permian and Piceance basin fields from Plains Exploration and Production Co. (PXP) for $1.29 billion. The transaction frees up cash that would allow PXP to develop its joint venture with Chesapeake Energy Corp. in the Haynesville Shale.

In an e-mail message that didn’t get sent until early afternoon Friday, Southern California Gas declared a high-linepack OFO for Saturday, saying it would assess Buy-Back charges in accordance with its tariffs to customers who delivered into its system more than 110% of their actual gas usage on the OFO day.

Chevron Corp. has shelved plans to sell its natural gas storage operations in British Columbia because the offered bids didn’t match the asset’s worth, the oil major said.

An Interior Department official last Tuesday said the agency didn’t expect any more producers to renegotiate the faulty 1998-1999 offshore oil and natural gas leases until the controversial court case involving Kerr-McGee Oil and Gas is decided on appeal.

An Interior Department official Tuesday said the agency didn’t expect any more producers to renegotiate faulty 1998-1999 offshore oil and natural gas leases until the court case involving Kerr-McGee Oil and Gas is resolved.