Exemption

In a blow to Texas oil and natural gas producers but a boon to state coffers, the Texas Supreme Court Friday decided not to grant a sales tax exemption for pipes, tubing and other equipment used in the energy patch.

FERC has approved Chestnut Ridge Storage LLC’s request for an exemption from the certificate requirements of the Natural Gas Act (NGA) to drill two test wells and perform other activities to determine the feasibility of developing a natural gas storage project in a storage field in southwestern Pennsylvania and northern West Virginia.

FERC Friday approved Chestnut Ridge Storage LLC’s request for an exemption from the certificate requirements of the Natural Gas Act (NGA) to drill two test wells and perform other activities to determine the feasibility of developing a natural gas storage project in a storage field in southwestern Pennsylvania and northern West Virginia.

Mississippi Hub LLC is seeking an exemption from Section 7 certificate requirements to conduct certain temporary activities to determine the operational feasibility of developing a natural gas storage facility in southern Mississippi.

Atmos Energy subsidiary Atmos Pipeline and Storage LLC plans to seek an exemption from regulatory oversight by the Federal Energy Regulatory Commission for a 20-inch diameter natural gas gathering system it plans to build in Eastern Kentucky. The proposed 50-mile Straight Creek Gathering System would be capable of moving up to 100,000 MMBtu/d with the ability to expand to 225,000 MMBtu/d. It is designed to relieve transportation constraints and allow gas to flow from shut-in wells. The $80 million system would originate in Floyd County, KY, and extend to an interconnect with the Tennessee Gas Pipeline in Carter County, KY. Atmos said the project is supported by independent oil and gas producers in the area, including Kinzer Drilling, which will have an ownership stake in the project. More than a dozen other producers have signed memoranda of understanding to commit gas volumes to the system and to agree to commercial terms. “We expect our Straight Creek project to help boost natural gas drilling and production in the Big Sandy region of Kentucky,” said Mark H. Johnson, senior vice president, nonutility operations, of Atmos Energy. “The gathering system should help provide year-round dependability for gas producers and should indirectly benefit natural gas customers by helping bring more gas supplies to market as demand continues to grow.” Johnson said production from 1,700 gas wells on the eastern side of the state has been shut in. Construction is expected to begin in the fall of 2006, with operations expected to begin by the summer of 2007.

Sen. Larry Craig (R-ID) is planning to offer legislation that would give U.S. producers an exemption to explore for oil and natural gas in the Cuban waters of the Florida Straits.

Unocal Windy Hill Gas Storage LLC has asked FERC to exempt from Section 7 requirements of the Natural Gas Act (NGA) “certain temporary acts and operations” that it plans to undertake to assess the feasibility of building a new natural gas storage facility in Colorado.

Unocal Windy Hill Gas Storage LLC has asked FERC to exempt from Section 7 requirements of the Natural Gas Act (NGA) “certain temporary acts and operations” that it plans to undertake to assess the feasibility of building a new natural gas storage facility in Colorado.

With summer 2001 only a week away, all eyes are turning toward California to see how the embattled state handles itself through the three-month period when air conditioning usage reaches its peak and MW supply becomes scarce. With the California Energy Commission (CEC) and the California Independent System Operator (Cal-ISO) already on record expecting rotating power outages during peak afternoon demand hours in the state, the key issue is how will the outages impact petroleum product and natural gas supply in the state.