Michigan

DTE Pipeline Co. began Tuesday began operation of its Bluestone Gathering pipeline system in Susquehanna County, PA. The southern portion of the pipeline connects gas production of Southwestern Energy to the Tennessee Gas Pipeline in Lenox Township, PA (see Shale Daily, July 6, 2011). The pipeline has a capacity of 275 million cubic feet per day. The remaining 32 miles of pipeline will interconnect with the Millennium Pipeline in Sanford, NY and should be completed in January, DTE said. Bluestone Gathering is being developed as the Bluestone Pipeline Co. of Pennsylvania LLC, Bluestone Gas Corp. of New York Inc. and Susquehanna Gathering Co. I LLC, all of which are subsidiaries of DTE Pipeline, an affiliate of DTE Energy. Bluestone is DTE’s first natural gas gathering project outside Michigan. DTE Pipeline also is a 40% owner of the Vector Pipeline, 26.25% owner of the Millennium Pipeline and 33% owner of the recently announced Nexus Gas Transmission System.

EnerVest Ltd., the second biggest leaseholder in Ohio’s Utica Shale, plans to sell the majority of its property in several packages in hopes of fetching $6 billion or more.

Chesapeake Energy Corp. is selling legacy properties in the Cana Woodford Shale, including the rights to 298 producing wells, “because it does not have the drilling budget to adequately develop the abundant additional opportunities in the area,” according to a sales listing. Ninety-eight percent of the leases are held by production.

Dallas-based natural gas vehicle (NGV) conversion company BAF Technologies has acquired Michigan-based automotive emissions control company ServoTech Engineering Inc., which will continue to operate under its current president as a BAF subsidiary. Terms of the acquisition were not released. Headed by Hamid Servati, ServoTech is a Ford Motor Co.-qualified calibration modifier. BAF was the first compressed natural gas converter recognized as Ford-qualified. ServoTech’s relationship with Ford should support BAF in developing engine calibrations more efficiently, enabling it ultimately to receive California and federal air quality approvals faster than in the past, according to BAF President John Bacon. BAF is a wholly owned subsidiary of Clean Energy Fuels Corp., a provider of fueling infrastructure and natural gas for NGVs.

ANR reported beginning engine repairs at St. John Compressor Station along its Michigan Leg South, reducing total St. John west-to-east capacity by 100 MMcf/d (leaving 1,195 MMcf/d available) through Friday. Based on current nominations, the reduction may result in curtailment of IT and Firm Secondary nominations, ANR said.

The ongoing expansion of Atlas Pipeline Partners LP’s (APL) Velma system and similar projects on the partnership’s other systems must be completed before it can take on all of the production coming its way, APL said Tuesday.

ANR said it began unplanned engine repairs Monday at Bridgman Compressor Station along its Michigan Leg South, which reduced total St. John W-E (west to east) capacity by 265 MMcf/d (leaving 1,030 MMcf/d available) until further notice. Based on current nominations, ANR anticipates that the reduction may result in the curtailment of IT and Firm Secondary nominations.

Linn Energy has agreed to pay $196 million to Concho Resources to acquire oil properties in the Bakken play in North Dakota, the companies said Monday. The properties are expected to add current net production of about 1,350 Boe/d (94% of it oil), proved reserves of approximately 8 MMBoe (83% oil) and more than 400 potential oil drilling locations, according to Linn.

Questerre Energy Corp. said late Monday it is deferring two exploration projects in its primary development area, the Utica Shale in Quebec’s St. Lawrence Lowlands, and will decide whether to proceed after the provincial government’s environmental review panel issues a report on shale gas development in February.