Management

New initiatives proposed by the Mineral Management Service couldcontribute an additional 500 Bcf to 1 Tcf/year of gas productionbetween 2004 and 2006, according to MMS Director Walt Rosenbusch.

To encourage drilling of marginal deep-water wells (200 metersand greater) in the Gulf of Mexico, the Minerals Management Service(MMS) has proposed a new rule expanding discretionary royaltyrelief for properties that would otherwise be considereduneconomic.

Calpine Corp. added 700 MW of New England power generation toits portfolio on Friday by purchasing assets from Dartmouth,MA-based Energy Management Inc. (EMI) for $145 million and theassumption of about $220 million of project financing.

Entergy Corp. and The Shaw Group Inc. have created EntergyShaw LLCto provide management, engineering, procurement, construction andcommissioning services to build electric plants worldwide. The twosigned the letter of intent to form the new company in early June. Itwill be headquartered in Baton Rouge, LA (see Daily GPI, June 5). Entergy and Shaw each will own a50% interest in the new company and Jim Early, a Shaw senior vicepresident, has been appointed president. In the next few years, thecompany is expected to manage the construction of several powerprojects, with a total capital value of more than $6 billion. Theactual number of projects was not announced.

Responding to projected shortages in natural gas and oilsupplies, the Minerals Management Service (MMS) has announcedproposed new rules to selectively extend deep-water royalty reliefin the Gulf of Mexico past the Nov. 28 expiration of the currentrelief program.

Responding to projected shortages in natural gas and oilsupplies, the Minerals Management Service (MMS) has announcedproposed new rules to selectively extend deep-water royalty reliefin the Gulf of Mexico past the Nov. 28 expiration of the currentrelief program.

The Bureau of Land Management (BLM) is taking no chances in thewake of the Carlsbad, NM, natural gas pipeline explosion. It hasordered a full Environmental Impact Statement (EIS) on a proposalto refurbish and put back into service the Equilon Pipeline, a406-mile, 42-year old crude oil pipeline from Odessa, TX toBloomfield, NM.

Indiana-based ProLiance Energy has been awarded atwo-and-a-half-year portfolio management contract by the TennesseeValley Supply Group (TVSG), of municipal energy buyers.

Enron Energy Services inked another commodity managementagreement yesterday with Rich Products Corp. for 11 years. Underthe $130 million-plus agreement, the Enron Corp. subsidiary willmanage electricity and natural gas services.