The Natural Gas Supply Association (NGSA) last week called intoquestion Vice President Al Gore’s pledge to continue the drillingban along the Florida and California coasts if he’s electedpresident. “The producers of natural gas are dismayed by yourrecent announcement” to stop in its tracks any drilling along thesetwo coasts, where it’s believed more than 40 Tcf of gas may beavailable, wrote NGSA President R. Skip Horvath in a letter toGore. “Denying access to this environmental fuel, some of whichresides offshore, appears inconsistent with the goal for a cleanerfuture.”
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The Case of the Missing Molecules
Sixty U.S. gas pipelines are still trying to figure out whathappened to 106 Bcf of gas last year. The methane simply vanishedinto thin air at a cost of more than $200 million, according to asurvey of FERC Form 2 data by GRI. The GRI research shows that onaverage, each of those interstate pipes lost about 4.8 MMcf/d.
Transportation Notes
Effective with Nov. 1 nominations, ANR will consolidate itsWillow Run (Receipt) and Willow Run (Delivery) locations into onebi-directional nominatable point. The combined location will benamed Willow Run (MichCon) and use the existing Data Reference No.42078. It is the only location that will be needed for eitherreceipts or deliveries, and will be available for Park and Lendactivity.
CMS expands Marketing Arm into 12 More States
CMS Energy Corp.’s energy marketing unit, CMS Marketing,Services and Trading (CMS-MST), announced last week the acquisitionof Viron Corp., a Kansas City, MO-based energy services company,from York International for an undisclosed sum. Viron will operateunder the name CMS Viron Energy Services, a subsidiary of CMS-MST.The deal was signed and closed last week.
Industry Briefs
Coastal Oil & Gas and Santa Fe Snyder have exchangedproperties in Utah, Wyoming, Texas and the Gulf of Mexico “toconsolidate assets into core areas for each company. Coastalreceived interests in six GOM blocks, plus the Jeffress Field inSouth Texas and 97,000 acres in Uintah and Duchense Counties inUtah. Coastal also received a cash payment of $18 million. Santa FeSnyder received interests in 22 Wyoming fields in the Green RiverBasin and three units in Gaines County, TX, in the Permian Basin.
Sempra Assaults Information Systems Market
Sempra Energy Information Solutions, a newly-formed SempraEnergy subsidiary, announced yesterday it has entered into a jointventure with two information technology companies to form SolianceNetworks, a provider of Internet-based information systemstargeting small and mid-sized energy utilities. Sempra owns themajority interest in Soliance and Dale Kelly-Cochrane, the formervice president of Sempra Energy’s strategic planning forunregulated businesses, is the joint venture’s president.
Mitchell Grows West Texas Presence
Mitchell Energy & Development Corp. announced it enteredinto a letter of intent to purchase Conoco’s 50% interest in theJameson processing plant and an associated 2,600-mile West Texasgas gathering system for an undisclosed sum. The Permian Basinplant and facilities currently are owned evenly by Conoco andMitchell.
Mitchell Grows West Texas Presence
Mitchell Energy & Development Corp. announced it enteredinto a letter of intent yesterday to purchase Conoco’s 50% interestin the Jameson processing plant and the associated 2,600-mile gasgathering system for an undisclosed sum. The plant, located in WestTexas, is currently owned evenly by Conoco and Mitchell.
Williams Predicts 3Q Earnings Shortfall
Williams share prices slid 5% but then rebounded late last weekand analysts adjusted their earnings forecasts following anannouncement that the company expects third quarter earnings pershare to be “substantially below” current Wall Street estimates of20 cents/share. The company said a change in accounting standardsand cooler than normal temperatures in Southern California, itsmajor power sales area, were to blame. But that’s just half thestory.
Transportation Notes
Sonat declared a force majeure in connection with maintenancethat began Monday at its No.2 delivery point into East TennesseeNatural Gas and will last for about three weeks. No nominationswill be scheduled at the point during this project, Sonat said.