Formal

Canada’s 12 biggest pipelines predict they could all be safely shut down and abandoned for C$4.58 billion (U.S. dollar at par), in formal estimates presented to the National Energy Board (NEB). But landowners along the big dozen’s natural gas and oil conduits are protesting that the companies have only owned up to a small fraction of their environmental liability.

Canada’s 12 biggest pipelines predict they could all be safely shut down and abandoned for C$4.58 billion (US$ at par), in formal estimates presented to the National Energy Board (NEB). But landowners along the big dozen’s natural gas and oil conduits are protesting that the companies have only owned up to a small fraction of their environmental liability.

A unit of Royal Dutch Shell plc has inked a milestone agreement with Chinese officials to use its technical know-how to develop shale gas in a first-ever production sharing contract (PSC).

The Sierra Club filed a formal objection at the Department of Energy (DOE), challenging the export of Marcellus Shale gas from Cove Point’s liquefied natural gas (LNG) import facilities in Maryland. The environmental group argued that LNG exports would raise natural gas and electricity prices nationwide and would expand the practice of hydraulic fracturing (fracking). Sierra Club called for the department to hold the first-ever full environmental impact statement assessing the effects of increased Marcellus Shale fracking. This is the third LNG export facility that the Sierra Club has opposed, with the other two being facilities in Coos Bay, OR, and Sabine Pass, LA. Sierra Club’s protest comes a week after the group attacked the Federal Energy Regulatory Commission’s environmental review of the proposed Sabine Pass Liquefaction LLC facilities (see Daily GPI, Feb. 1).

Three environmental groups in California have filed a formal protest against the federal Bureau of Land Management’s (BLM) plans for a September oil/gas lease sale in the Monterey play, alleging that a more thorough environmental assessment (EA) is needed and calling on BLM to zero in on the impact hydraulic fracturing (fracking) might have.

New Mexico regulators on Thursday indicated they will launch a “formal and thorough” investigation of the causes for the recent natural gas service interruptions for customers of New Mexico Gas Co. The state Public Regulation Commission (PRC) is drafting an order to start the probe at the urging of its chairman, Patrick Lyons.

FERC last Thursday initiated formal Natural Gas Act (NGA) Section 5 investigations of two pipelines — Kinder Morgan Interstate Gas Transmission LLC and Ozark Gas Transmission LLC — based on information that indicates they significantly over-recovered their cost of service in 2008 and 2009, potentially resulting in unjust and unreasonable rates for shippers.

FERC Thursday initiated formal Natural Gas Act (NGA) Section 5 investigations of two pipelines — Kinder Morgan Interstate Gas Transmission LLC and Ozark Gas Transmission LLC — based on information that indicates they significantly over-recovered their cost of service in 2008 and 2009, potentially resulting in unjust and unreasonable rates for shippers.

For the first time in 20 years FERC has initiated formal Natural Gas Act (NGA) Section 5 investigations of three pipelines: Natural Gas Pipeline Co. of America LLC (NGPL), Northern Natural Gas and Great Lakes Gas Transmission Ltd. Partners based on preliminary studies that indicate the three may be over-recovering their cost of service by more than 20%. If so, their rates would no longer be just and reasonable.