Interest

Inergy LP said Tuesday it plans to spin off a minority interest in a new master limited partnership (MLP) as Inergy Midstream LP, which initially would own and operate the northeastern midstream natural gas storage and transportation business.

Mountainview Energy Ltd. announced it intends to acquire a 20% interest in approximately 67,000 gross acres (about 13,400 net acres) in the Bakken/Three Forks Shale in a stock deal valued at about C$21.5 million. The parcels are located in the Medicine Lake Prospect, which is in Divide County, ND, and Richland, Roosevelt and Sheridan counties, MT. The acquisition will increase Mountainview’s position in the Williston Basin to approximately 25,400 net acres.

August natural gas declined slightly Wednesday as algorithmic traders showed little interest in purchases at current prices and the market awaits the release of government inventory figures. August had fallen 3.3 cents to $4.500 and September had skidded 4.2 cents to $4.469. August crude oil gained 64 cents to $98.14/bbl.

With its own strategic business interest at stake, Seal Beach, CA-based Clean Energy Fuels Inc. attempted to make the case Friday for American business supporting national legislation to help boost the use of natural gas as a transportation fuel. Clean Energy’s founder, T. Boone Pickens, is a big backer of the proposed legislation known as NAT GAS Act (see Daily GPI, April 21).

July natural gas futures retreated Wednesday as traders observed interest by systematic traders re-emerging on the sell side, and little concern from surprises in Thursday’s government inventory figures. At the close July was down 7.1 cents to $4.317 and August had skidded 7.3 cents to $4.350. August crude oil added $1.24 to $95.41/bbl.

The chairman of Energy Transfer Equity LP (ETE) said Thursday the merger with natural gas pipeline giant Southern Union Co. (SUG) will give the combined company more customer market access in U.S. shale gas plays and alleviate some growing takeaway issues.

The unfolding story of Lower 48 shale gas supply and the buildout of the nation’s natural gas pipeline grid have done a lot to beat down gas prices and minimize volatility. So much so that one academic suggests in a new paper that some utilities and their regulators are out of step with the latest in price-risk hedging strategies.

The New York Public Interest Research Group (NYPIRG) said it would deliver to Gov. Andrew Cuomo a petition calling on the state to protect drinking water from the potential impacts of hydraulic fracturing (hydrofracking). New York’s Department of Environmental Conservation (DEC) is due to complete work on a supplemental generic environmental impact statement on hydrofracking this summer (see Shale Daily, April 13). The NYPIRG, a student-run organization with chapters on 20 college campuses in the state, told the Associated Press its petition had been signed by more than 10,000 New Yorkers.

The Bartonville, TX, Town Council on March 30 instituted a 90-day moratorium on new permits related to natural gas drilling and production.