Mountain

Anadarko Petroleum Corp. is doubling up its Rocky Mountainexploration and production presence this year, announcing yesterday itwould budget more than $131 million toward an aggressive strategy tofind and develop new natural gas and coalbed methane sourcesthere. E&P will target some of the nearly eight million acrespicked up in the Union Pacific Resources merger last year (see DailyGPI, July 17, 2000).

Kinder Morgan Inc. (KMI) transferred the 2,600-mile KinderMorgan Texas Pipeline (KMP) system and several Rocky Mountainregion gathering and treating assets to Kinder Morgan EnergyPartners last week for $300 million, which nearly wraps up themassive asset divestiture program KMI started last year followingits merger with KN Energy.

There’s little doubt that pipeline capacity between the RockyMountain region and the Midcontinent is about to experience asignificant upgrade. In all, three large projects have surfaced,including one formally announced this week by Colorado InterstateGas (CIG).

Pipeline competition in the Rockies is heating up with a newpipeline project launched last week by Williams and changes to aplanned extension announced by rival Trailblazer Pipeline.

Denver’s Tom Brown Inc. paid $16.2 million for an estimated 22Bcf of gas equivalent in reserves, with current net dailyproduction of 8 MMcf of equivalent gas in the Rocky Mountainregion’s Pavillion field. The transaction by the independent energycompany increases its working interest in the Pavillion to 90%, upfrom a previous 50% interest.

Developers of what at one time was California’s first merchantpower plant proposal are gearing up for more concentrated effortsto develop natural gas deals and power marketing efforts, assumingthey get final federal government environmental okays for their$350 million, 700 MW High Desert generation plant by mid-summer.Although delayed more than two years, the project last week (May 3)gained its long-sought state approval for the plant from theCalifornia Energy Commission (CEC).

Cross Timbers Oil Co. killed two birds with one stone recentlyas it sold $63.5 million of non-core assets in various RockyMountain and Midwest areas, then used the proceeds from the sale tobuy Lehman Brothers Holding’s 50% in Spring Holdings Co. The restof the proceeds from the sale were used to pay down debt, thecompany said when it revealed both transactions yesterday. CrossTimbers now owns 100% of Spring Holding Co.

Natural Gas Intelligence the weekly gas market newsletterpublished : August 16, 1999

CMS Energy Corp. went on a shopping spree yesterday, taking amajor stake in one of the Rocky Mountain region’s hottest newproducing areas, the Powder River Basin, and added to its growingMidcontinent midstream asset base with the purchase of Heritage GasServices, L.L.C.