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Land

Transportation Notes

Rainfall running almost 165% above normal so far in 2006 has triggered land movement between Washougal and Willard in the Blue Lake area of Washington state at approximately Mile Post 1192, Northwest said Friday. “Strain gauges installed in this segment have registered steady increases in stress on the pipeline in this area,” the pipeline added. “Although the stress levels require remediation soon, they are not such that immediate action is needed.” In order to ensure safety and reliability in this segment, Northwest plans to blow down and excavate the affected area to reduce line stress. It anticipates there will be no physical flow through the area for Wednesday’s gas day. “Based upon current weather forecasts and operating conditions, Northwest does not anticipate primary impacts to customers. Northwest will work with its interconnects and use its Jackson Prairie inventory in an attempt to eliminate customer impacts. However, if net nominations north through the Washougal Compressor [Station] increase significantly over the currently scheduled volume of 386,000 Dth/d, Northwest may be forced to declare a Deficiency Period. Customers can help mitigate market impacts by buying gas at Sumas,” the pipeline said. For the Feb. 22-24 gas days Northwest will only schedule primary nominations north through either the Roosevelt or Washougal Compressor Stations. If the stress on the line accelerates, remediation work may begin earlier than currently planned, it said. A Stage II entitlement remained in place until further notice.

February 21, 2006

Industry Brief

Superior Oil & Gas Co announced Thursday it had received a permit from the Bureau of Land Management for its pipeline right-of-way in Rio Blanco County, CO. Superior is designing a 12-inch, 18-mile gas pipeline capable of carrying up to 30 MMcf/d with a $0.60/Mcf gathering fee.”The announcement of this permit gives us another opportunity to create a revenue stream for our company,” stated Dan Lloyd, Superior’s CEO. “We continue to execute our business model through this permit and the previous agreements to purchase gas wells. In addition,we are targeting other properties and hope to inform our shareholders regarding the specifics in the near future.” Superior Oil & Gas Co., headquartered in Yukon, OK, has executed agreements to purchase over 28 gas wells in Kansas and continues to target other properties for acquisition.

February 10, 2006

Warren Resources Receives Draft EIS for Rockies Atlantic Rim CBM Program

Moving one step closer to receiving a green light on its plans, Warren Resources Inc. said Monday that the Bureau of Land Management has posted the draft Environmental Impact Statement (EIS) for the Rockies area Atlantic Rim Coalbed Methane project (CBM) on its website, and the official Federal Register Notice was published on Dec. 16, 2005.

December 20, 2005

BLM Ruling Allows Questar to Boost Pinedale Production 8 Bcf Next Year

Questar Corp. said Tuesday a ruling by the Bureau of Land Management (BLM) will allow it to produce an additional 8 Bcf of gas next year from its Pinedale Anticline leasehold in western Wyoming. That’s enough gas to heat about 96,000 average American homes for one year.

November 16, 2005

Transportation Notes

Pacific Gas & Electric did not extend a high-inventory OFO beyond Saturday.

November 1, 2005

Apache Swaps Egyptian Assets for Permian Basin Fields

Apache Corp. and Amerada Hess Corp. have agreed to a land swap, with Apache selling its 55% interest in a deepwater section off of Egypt’s coast for $413 million and Hess selling eight fields in the Permian Basin of West Texas and New Mexico for $404 million.

October 14, 2005

Pemex Pins Foreign E&P Investment on Multiple-Service Contracts

Mexico’s land and offshore regions are estimated to hold some of the largest oil and gas reserves in the world, but the country still is facing an uphill battle in moving from becoming an importer to a major exporter, according to state-run Petroleos Mexicanos (Pemex), which released preliminary figures on 2001 oil and gas production last week.

September 5, 2005

Power, Communication Problems Slow Assessment of Oil, Gas Facilities

With power off, land lines down and cellular phone towers demolished, communication continued to be a major problem for oil and natural gas companies trying to assess damage onshore and offshore from Hurricane Katrina on Wednesday.

September 1, 2005

BLM Puts Hold on Proposed Processing Fees for Oil, Gas Permits

In response to the newly enacted energy bill, Interior Department’s Bureau of Land Management (BLM) plans to put on hold portions of proposed regulations that would have allowed it to implement fees to recover costs associated with oil, natural gas and geothermal leasing, including the processing of oil and gas applications for permits to drill (APDs) and geothermal permits to drill (GPDs).

August 31, 2005

Pemex Pins Foreign E&P Investment on Multiple-Service Contracts

Mexico’s land and offshore regions are estimated to hold some of the largest oil and gas reserves in the world, but the country still is facing an uphill battle in moving from becoming an importer to a major exporter, according to state-run Petroleos Mexicanos (Pemex), which released preliminary figures on 2001 oil and gas production this week.

August 30, 2005