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Rumors of Midstream Sale Boost Chesapeake Shares

Chesapeake Energy Corp. is in advanced negotiations to sell all of its midstream assets, including its stake in Chesapeake Midstream Partners LP (CHKM), for more than $4 billion, a transaction that could be completed in the next few days, sources told NGI’s Shale Daily on Wednesday. The bidder is said to be private equity giant Global Infrastructure Partners (GIP), which initially helped to fund the master limited partnership (MLP) and which continues to be a joint partner.

June 7, 2012

Chesapeake Shares Soar on Report to Sell Midstream Businesses

Chesapeake Energy Corp. is in advanced negotiations to sell all of its midstream assets, including its stake in Chesapeake Midstream Partners LP (CHKM), for more than $4 billion, a transaction that could be completed in the next few days, sources told NGI’s Shale Daily on Wednesday. The bidder is said to be private equity giant Global Infrastructure Partners (GIP), which initially helped to fund the master limited partnership (MLP) and which continues to be a joint partner.

June 7, 2012

Industry Brief

The California Energy Commission has approved more than $35 million in grants to accelerate development of clean transportation fuels, including natural gas. One of the grants is to the Gas Technology Institute ($4.5 million) for two demonstration projects: one with US Hybrid Corp. to demonstrate three hybrid natural gas trucks and a second project to demonstrate a natural gas version of the heavy-duty Navistar MaxxForce 13 diesel engine in partnership with Clean Air Power. Separately, a Buick-GMC dealership will receive a buy-down incentive of $16,000 for two natural gas-fueled medium-duty vehicles of 8,501 to 14,000 pounds. Additional natural gas transportation demonstrations will be included as part of a $14.4 million grant to CALSTART Inc. for demonstrating medium- and heavy-duty vehicles using advanced technologies and alternative fuels. In total, 29 vehicles of nine different types will be used and evaluated, ranging from all-electric battery vehicles to hybrid diesel-electric work trucks, shuttle buses and construction equipment.

June 4, 2012

California Senate Rejects Fracking Bill; Second Measure Alive

California lawmakers on Thursday rejected an industry-opposed bill (SB 1054) on hydraulic fracturing (fracking), but a second fracking measure (AB 591) is still alive.

June 4, 2012

Pennsylvania Families Allege Water Contamination, Conspiracy

Three families in western Pennsylvania have filed a lawsuit against 17 defendants, including an operator for Range Resources Corp. and two independent water testing labs, alleging that a drilling and impoundment site caused health problems. The plaintiffs also accused Range and the labs of conspiring to hide evidence of drinking water contamination.

May 31, 2012

‘Golden Age’ for Unconventional Gas Needs ‘Golden Rules,’ Says IEA

A “golden age” is on the horizon for natural gas across the globe, but only if the world’s unconventional resources, including shale, tight gas and coalbed methane, are developed profitably and in an environmentally acceptable manner, the International Energy Agency (IEA) said in a sweeping report on Tuesday.

May 30, 2012

New York Fund Urges Chesapeake Shake-Up Following Icahn Letter

Chesapeake Energy Corp.’s shareholders gave a modest thumb’s up Tuesday to the news that Carl Icahn is now the company’s third largest shareholder, and another large shareholder group urged a board shake-up to extract value.

May 30, 2012

New Brunswick Proposes Bevy of Oil, Gas Regulatory Changes

Officials in New Brunswick unveiled a list of more than 100 recommended changes to the province’s regulatory framework for oil and natural gas on Thursday, including tougher casing and cementing standards, increased water protections and substantially higher royalties.

May 21, 2012

DCP Projects Target Midcontinent Liquids

DCP Midstream LLC is promoting a number of Midcontinent-focused projects currently under way that combined represent an investment of $2 billion. Among them is infrastructure development to provide natural gas liquids (NGL) takeaway capacity to Mont Belvieu, TX.

May 3, 2012

Industry Briefs

Indiana-based Cummins Inc. said Monday it will produce dual fuel natural gas/diesel engines for the high-horsepower market including oil and gas fields throughout the nation. The first in a series of products will be aimed at oil and gas well servicing applications with its production beginning in mid-2013. QSK50 Tier 2 will be the first new dual fuel engine followed by other models in the QSK series of engines, Cummins said. The new products will be capable of meeting new federal Environmental Protection Agency (EPA) Tier 4 emissions standards. Cummins said the high-horsepower dual fuel engines will operate with common integrated controls that allow what it called a “seamless transition” from diesel to a dual fuel blend of diesel and natural gas operation. Substitution rates using natural gas will vary from 50% to 70%, depending on applications and the duty cycle. The dual fuel option will be available in both the new engines and through retrofit of existing QSK engines.

May 1, 2012