Mutual

Quicksilver Resources Inc. has executed an agreement with the U.S. exploration arm of Royal Dutch Shell plc to establish an area of mutual interest (AMI) covering more than 850,000 acres of the Sand Wash Basin in northwestern Colorado.

The City Council of Binghamton, NY, voted 6-1 Wednesday night in favor of enacting a two-year ban on hydraulic fracturing (fracking) within the city limits.

Cheniere Energy Inc. and Gaz de France (GDF) agreed to a mutual deal last week that will allow them to buy and sell liquefied natural gas (LNG) in European and North American markets over a 15-year period. Under the plan, Cheniere agreed to purchase seven LNG cargoes from GDF in 2008.

Although pipelines and producers are often at odds on major issues before FERC, the groups are “steadfast in our mutual support for reforms” to promote the construction of interstate natural gas pipeline mainline expansions, certain storage facilities and takeaway facilities for liquefied natural gas (LNG) import terminals, top officials of the Interstate Natural Gas Association of America (INGAA) and the Natural Gas Supply Association (NGSA) said in a joint letter to FERC last Tuesday.

Although pipelines and producers are often at odds on major issues before FERC, the groups are “steadfast in our mutual support for reforms” to promote the construction of interstate natural gas pipeline mainline expansions, certain storage facilities and takeaway facilities for liquefied natural gas (LNG) import terminals, top officials of the Interstate Natural Gas Association of America (INGAA) and the Natural Gas Supply Association (NGSA) said in a joint letter to FERC Tuesday.

In a mutual agreement, Williams has terminated the sale of some of its South Texas natural gas transmission lines to Enbridge Energy Partners LP, a deal originally set in October 2001. The South Texas system includes unregulated gathering systems and 492 miles of FERC-regulated pipelines. The two regulated pipelines extend from the Texas-Mexico border near Laredo and McAllen, TX, to Transco Station 30, where they connect with Williams’ Transco mainline. Enbridge Inc. subsidiaries agreed in October 2001 to purchase the Williams’ assets for $41 million (see NGI, Oct. 15, 2001). The transaction was conditioned upon approval by the Federal Energy Regulatory Commission that Williams could abandon the facilities to Enbridge and upon a finding that the assets would not be subject to FERC jurisdiction under the Natural Gas Act following the sale. In October 2002, Enbridge then assigned the purchase to Enbridge Energy Partners. In May, FERC issued an order denying abandonment of the South Texas system, which reversed a previous ruling granting the necessary approvals. The decision, said Williams, effectively prevents the sale from proceeding under the terms of the purchase and sale agreement. Williams plans to pursue an alternative transaction with Enbridge Partners or other buyers under a structure that is responsive to the May 2 FERC order, the company said in a statement.

In a mutual agreement, Williams is terminating the sale of some of its South Texas natural gas transmission lines to Enbridge Energy Partners LP, a deal originally set in October 2001. The South Texas system includes unregulated gathering systems and 492 miles of FERC-regulated pipelines. The two regulated pipelines extend from the Texas-Mexico border near Laredo and McAllen, TX, to Transco Station 30, where they connect with Williams’ Transco mainline.