Draws

The Bureau of Land Management (BLM) reported that high oil and gas prices and a strong interest in exploration and development led to record nominations in its June oil and gas lease sale in Utah. Total nominations covered more than 398,000 acres, two-thirds of which were outside historical core producing areas. The Utah BLM plans to offer 281,253 acres (164 parcels) for lease at the quarterly sale.

The Bureau of Land Management (BLM) reported that high oil and gas prices and a strong interest in exploration and development led to a record amount of nominations in its June oil and gas lease sale in Utah. Total nominations covered more than 398,000 acres, two-thirds of which were outside historical core producing areas. The Utah BLM plans to offer 281,253 acres (164 parcels) for lease at the quarterly sale.

Some of the state’s biggest stakeholders wasted no time in voicing support for Gov. Arnold Schwarzenegger’s initial outline of his electricity priorities, including support for a core/noncore market structure, more renewable energy use, and long-term contracts for the state’s three private-sector utilities.

ANR Pipeline Co. said Wednesday that in response to a recent open season, it received requests for more than 700,000 Dth/d of incremental transportation capacity on its natural gas pipeline system in Wisconsin and northern Illinois. The company expects to have the support facilities in place during 2006.

Apparently unimpressed with the larger than expected storage withdrawal announced Thursday, the April natural gas futures contract dropped 9.3 cents on the day to close at $5.336. The consensus among market observers was that the 65 Bcf pull from storage surprised no one after the East experienced a widespread cold snap last week.

As the first week of the New Year drew to a close, increasing regulatory and media scrutiny threatened to unravel the end-of-year decision by PG&E Corp. and its utility to move ahead with distributing $83 million in bonuses to 17 top executives in the corporation, including those at its bankrupt utility subsidiary and merchant energy unit. When and how the proceeds from so-called “phantom” stock options will be distributed was still undetermined.

As the first week of the New Year drew to a close, increasing scrutiny by local news media and state regulators threatened to unravel the end-of-year decision by PG&E Corp. and its utility to move ahead with distributing $83 million in bonuses to 17 top executives in the corporation and Chapter 11 bankruptcy bound utility and merchant energy units. When and how the proceeds from so-called “phantom” stock options will be distributed was still undetermined.

The U.S. Coast Guard said it will create a permanent safety and security zone around Dominion Resources’ Cove Point liquefied natural gas (LNG) import terminal on the eastern shore of Maryland in response to heightened terrorist warnings. The permanent zone will replace a temporary one that has been in place since Cove Point reactivated its LNG import operations last July.

Draft legislation endorsed by Wyoming Gov. Dave Freudenthal that would create an environmental fund to pay for unexpected impacts from the state’s burgeoning coalbed methane (CBM) development is under fire by the state’s influential oil and gas industry.