Fiscal

Alaska Gov. Frank Murkowski announced late Friday that he has reached an agreement with ConocoPhillips on the base fiscal contract terms of a proposed agreement for a gas pipeline that would bring gas from the North Slope to gas markets in the Lower 48 states.

BP, ExxonMobil and ConocoPhillips have delivered a fiscal contract proposal to the Alaska governor on development and market delivery of Alaska natural gas production, agreeing to the basic terms Alaska Gov. Frank Murkowski laid out two weeks ago for construction of the $20 billion pipeline project from the North Slope of Alaska to the Lower 48 states, a spokesman for the governor told NGI.

The president’s budget for fiscal year 2006 calls for the Minerals Management Service (MMS) to increase base rentals by about 25-27% for leases in the Gulf of Mexico due to inflation since the base rates were set in the mid 1990s. The agency said last Wednesday in a Federal Register notice that it is taking comments through April 1 on the base rate hike and a proposed sliding scale escalator, which it says is designed to encourage more deepwater exploration.

The president’s budget for fiscal year 2006 calls for the Minerals Management Service (MMS) to increase base rentals by about 25-27% for leases in the Gulf of Mexico due to inflation since the base rates were set in the mid 1990s. The agency said on Wednesday in a Federal Register notice that it is taking comments through April 1 on the base rate hike and a proposed delayed sliding scale escalator, which it says is designed to encourage more deepwater exploration.

Southern Union said it will change from a June 30 fiscal year end to a Dec. 31 calendar year end because of its new more midstream business profile. “Our decision to change to a calendar year end reflects Southern Union’s new business profile — weighted heavily toward the natural gas transportation sector,” said Southern Union President Thomas F. Karam. “We feel that this move will also provide the investment community more comparative information with which to better evaluate Southern Union against its peers.” The change in the company’s reporting period will create a six-month stub period from July 1 through Dec. 31, 2004. A transition report on Form 10-K, including audited financial statements for the six-month stub period, will be filed with the Securities and Exchange Commission on or before March 16, 2005. Southern Union previously announced calendar year 2004 and 2005 earnings guidance of $1.00 to $1.10 per share and $1.45 to $1.55 per share, respectively.

California’s Gov. Arnold Schwarzenegger, with the state budget crisis put to bed for the new fiscal year, is planning to turn his attention to energy. In his “state-of-the-state” address kicking off the year he emphasized the so-called hydrogen highway, energy efficiency and renewables, but he has stressed that much can be done within an existing law (AB 57) passed two years ago.

The Department of Energy’s (DOE) proposed $88 million in budget cuts for energy efficiency research and development in fiscal 2005 marks a “retreat” from the agency’s prior commitment to tackle escalating natural gas prices, said the American Council for an Energy-Efficient Economy (ACEEE) last week.

The Department of Energy’s (DOE) proposed $88 million in budget cuts for energy efficiency research and development in fiscal 2005 marks a “retreat” from the agency’s prior commitment to tackle escalating natural gas prices, said the American Council for an Energy-Efficient Economy (ACEEE).

As part of his larger 2004-05 fiscal year budget, California Gov. Arnold Schwarzenegger Friday proposed a significant downsizing of the state government bureaucracy overseeing the energy industry and further renegotiation of the state’s long-term power contracts with suppliers.