Modified

Intangible drilling costs (IDC) are “an ordinary and necessary business expense of the oil and gas industry,” and should only be modified as part of a broader tax reform package — and in combination with a lower, globally competitive corporate tax rate — according to Industrial Energy Consumers of America (IECA).

Intangible drilling costs (IDC) are “an ordinary and necessary business expense of the oil and gas industry,” and should only be modified as part of a broader tax reform package — and in combination with a lower, globally competitive corporate tax rate — according to Industrial Energy Consumers of America (IECA).

Hearings resumed Wednesday in New Mexico on a request from the state’s two main energy industry groups that the state’s “pit rule” be modified to make it more cost effective. An official with the state Energy, Minerals and Natural Resources Department indicated that additional hearings may be required by the Oil Conservation Commission (OCC). New Mexico’s Independent Petroleum Association (IPA) and Oil and Gas Association (OGA) have continued to seek administrative changes to state rules for handling natural gas and oil drilling production waste (see Daily GPI, May 22). Earlier, IPA and OGA representatives told the OCC that their costs are rising to comply with the pit rule, and ranchers expressed environmental concerns. After five days of testimony in May, the OCC was taking additional input and that was expected to require additional hearings beyond the one now scheduled for Friday (June 22). A final determination by the OCC will not come up until about a month after hearings are concluded, according to a state resources department official.

The number of “felt” manmade earthquakes induced by hydraulic fracturing (fracking) in oil and natural gas operations is negligible, the chair of a major report on seismicity activity told a Senate panel Tuesday. However the disposal of the water associated with fracking of shale gas wells is linked to increased quake activity, an official with the U.S. Geological Survey (USGS) said.

New Mexico has completed initial hearings on a request from the state’s two main energy industry groups that the “pit rule” be modified to make it more cost effective. The hearings are scheduled to continue June 20 in Santa Fe, NM.

Williams Partners LP has modified the open season for Atlantic Access, a proposed expansion of its Transco interstate pipeline, as a result of discussions with potential shippers (see Shale Daily, Feb. 7). Transco is increasing the total firm transportation capacity, offering additional firm transportation paths and revising the proposed in-service date to December 2015. The revised open season runs through July 13. Atlantic Access would connect gas supplies originating in western West Virginia and Pennsylvania to markets in the Northeast, Mid-Atlantic, Southeast and Gulf Coast regions. Transco is now proposing a total of six firm transportation paths under the project. Two of the three original paths have been fully subscribed. For customer inquiries, contact Gary Duvall at (713) 215-2589.

In a day-long hearing Thursday before New York legislators that was at times slowed by audience jeers and shouting, regulators and business leaders urged the state to support expanding natural gas development in the Marcellus Shale.

A federal appeals court in Washington, DC has vacated and remanded an order in which FERC, after having approved two rate settlements, modified them to require Dominion Transmission Inc. to provide additional information to its shippers with respect to its fuel accounting practices.

A federal appeals court in Washington, DC Friday vacated and remanded an order in which FERC modified two rate settlements to require Dominion Transmission Inc. to provide additional information to its shippers with respect to its fuel accounting practices.