Excess

A simmering dispute over tolls and excess delivery capacity on Maritimes & Northeast Pipeline (MNP) has boiled over into a regulatory duel, with hearings scheduled to begin March 1 before Canada’s National Energy Board (NEB) in the Nova Scotia capital of Halifax.

RAM Energy Resources Inc. has sold its North Texas Barnett Shale and Boonsville properties to Milagro Producing LLC for $43.7 million in cash, prior to adjustments.

The Delaware River Basin Commission (DRBC) on Thursday proposed rules that would allow natural gas development projects — with conditions — in affected areas of the Marcellus Shale.

Despite a mid-term outlook for mostly moderate temperatures in nearly all regions and warnings of excess supplies at some locations in the West, cash prices were higher at most points Monday. A return of freezing lows in the Rockies after a relatively mild weekend, along with temperatures dipping into the 30s in both the Northeast and Midwest, got a modest amount of support from industrial demand returning from its typical weekend hiatus in boosting cash quotes.

While saying he favors limiting excess commodities market speculation through position-limit authority, new Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler declined to attribute the recent rise in oil prices to a return of speculative fever. Responding to questions before a Senate Appropriations subcommittee Tuesday, he said “part of what we’re seeing is confidence coming back into the market.”

Reduced cash flows, the credit crunch and the need to remove excess natural gas supply led Raymond James & Associates Inc. analysts to reduce their 2009 rig count forecast for the second time in less than two months.

Reduced cash flows, the credit crunch and the need to remove excess natural gas supply led Raymond James & Associates Inc. analysts to reduce their 2009 rig count forecast for the second time in less than two months.

Prices continued to slide at most points Thursday under pressure from two previous days of futures weakness, excess supply issues in parts of the West and insufficient cooling demand to keep a floor under overall pricing.

After posting an alert about experiencing excess linepack, Pacific Gas & Electric issued a systemwide Stage 2 high-inventory OFO for Thursday. Penalties of $1/Dth were set for daily positive imbalances exceeding a 5% tolerance.