Empire

Continental Resources Inc., now the king of the Bakken Shale, has expanded its empire to an estimated 1.1 million net acres after completing a deal to buy 119,218 million acres for $649.3 million in cash. The Samson Resources Co. properties in North Dakota, primarily in Williams and Divide counties, have current production estimated at about 6,500 boe/d, 82% weighted to crude oil.

The Town Board of Onondaga, NY, voted Monday to extend its moratorium on hydraulic fracturing (fracking) for three months, or until the board passes an ordinance either allowing or prohibiting the practice.

The Federal Energy Regulatory Commission has given Transcontinental Gas Pipe Line (Transco) the go-ahead to place into service the remaining facilities that are part of the first phase of its 225,000 Dth/d expansion of its system to serve growing natural gas markets in the Southeast. The Phase I project, which would add 95,000 Dth/d, is scheduled to begin service this month. Construction of Phase II, which would add 130,000 Dth/d, is expected to go into service in June 2013. Transco has estimated the capital cost of the project at $217 million. The Mid-South Expansion Project consists of five loops totaling 23 miles of new pipeline. The facilities in the first phase that were approved for service include three loops in Randolph County, AL; and Gaston County and Davidson County, NC, as well as modifications to existing compressor stations in Georgia, South Carolina and North Carolina [CP11-18]. Transco said it has entered into binding precedent agreements for 100% of the incremental firm transportation service to be provided by the project (see NGI, May 31, 2010).

Millennium Pipeline Co. LLC and sponsors of its proposed natural gas compressor station project in Minisink, NY, which would boost the company’s firm deliveries of Marcellus Shale gas to about 675,000 Dth/d to serve the Northeast and New England markets, continue to await FERC’s final decision on the application, originally filed almost a year ago.

Several municipalities in the Southern Tier of New York have adopted nonbinding resolutions that take a stand that would allow high-volume hydraulic fracturing (fracking), a position that dovetails with an assertion by state officials that the drilling stimulation practice, if eventually approved by regulators, only would be permitted in communities that allowed it.

Legislators and regulators in New York are hinting that should high-volume hydraulic fracturing (fracking) be permitted in the Empire State, localities that are the most receptive to the practice may be the first — and, possibly, the only — areas to allow it.

Legislators and regulators in New York are hinting that should high-volume hydraulic fracturing (fracking) be permitted in the Empire State, localities that are the most receptive to the practice may be the first — and, possibly, the only — areas to allow it.

Former New York Gov. George Pataki said Thursday he supports shale gas and hydraulic fracturing (fracking) in the Empire State’s portion of the Marcellus Shale, calling its development “the right thing to do.”

Nearly a week after a bill that would temporarily block hydraulic fracturing (fracking) in the Empire State landed on his desk, New York Gov. David Paterson has not decided if he will sign or veto the legislation.