Estimated

Enbridge Inc. said Wednesday it has entered into an agreement to buy Shell’s natural gas pipeline and gathering operations in the Gulf of Mexico for an estimated US$613 million.

Reflecting estimates for higher than estimated wholesale natural gas costs, the Nevada Public Utilities Commission Wednesday approved a 9.2% retail rate hike for Las Vegas-based Southwest Gas Corp., and the utility immediately issued an announcement warning customers they face higher heating bills this winter. Southwest Gas had asked for a 5% hike, but the regulatory commission on further estimating wholesale prices bumped it up to $30 million.

Reflecting estimates for higher than estimated wholesale natural gas costs, the Nevada Public Utilities Commission Wednesday approved a 9.2% retail rate hike for Las Vegas-based Southwest Gas Corp., and the utility immediately issued an announcement warning customers they face higher heating bills this winter. Southwest Gas had asked for a 5% hike, but the regulatory commission on further estimating wholesale prices bumped it up to $30 million.

Reflecting estimates for higher than estimated wholesale natural gas costs, the Nevada Public Utilities Commission Wednesday approved a 9.2% retail rate hike for Las Vegas-based Southwest Gas Corp., and the utility immediately issued an announcement warning customers they face higher heating bills this winter. Southwest Gas had asked for a 5% hike, but the regulatory commission on further estimating wholesale prices bumped it up to $30 million.

An effort by Senate conferees to attach an estimated $12 billion, 10-year package of energy tax credits and incentives to broad corporate cut tax legislation fell flat Tuesday.

XTO Energy Inc. said it closed its previously announced purchase of 732 Bcfe of estimated reserves from ChevronTexaco Corp. for $912 million. The “legacy properties” expand XTO’s operations in its Eastern Region, the Permian Basin and Midcontinent area while opening new coalbed methane operations in the Rocky Mountains and a new operating region in South Texas. Beginning Aug. 16, the acquired properties will contribute production of about 88 MMcf/d of gas and 14,000 bbl/d of oil. About 87% of the reserves are proved developed with 47% of the reserves attributable to oil. XTO CEO Bob R. Simpson said the “watershed event sets the stage for years of continued profitable growth.” XTO President Steffen E. Palko said the company anticipates a smooth transition of operations and immediate work on field optimizations. “With the company’s current production growth goal of 28% to 30% this year and 18% to 20% in 2005, we can patiently integrate new drilling inventory into our long-term plans for double-digit organic growth.”

Declining availability of hydroelectric generation in the West and the larger than normal discount for natural gas compared to Gulf Coast distillate fuel, propane and NGLs will contribute to the narrowing of the storage surplus in the weeks before the Nov. 1 start of the winter season, according to analyst Stephen Smith. Nevertheless, Smith is predicting storage stocks on that date (sans hurricane interruptions) will total about 3,200 Bcf, above the 3,030 Bcf average for Nov. 1 over the last 10 years.

Frisco, TX-based Comstock Resources is contributing about 300 Bcfe of estimated proved Gulf of Mexico oil and gas reserves and about $102.7 million in related debt to newly created exploration and production venture Bois d’Arc Energy LLC for a 59.9% stake in the new company.

Frisco, TX-based Comstock Resources is contributing about 300 Bcfe of estimated proved Gulf of Mexico oil and gas reserves and about $102.7 million in related debt to newly created exploration and production venture Bois d’Arc Energy LLC for a 59.9% stake in the new company.