natural gas prices

Los Angeles-based Occidental Petroleum Corp. (Oxy) said it is paying a $14 million lump sum to former chairman and CEO Ray Irani as part of a $26 million settlement following his ouster earlier this year from chairing the Oxy board. After a 30-year stint at the mid-major oil/natural gas company, Irani, 78, was pushed out of his chairman role in May (see Daily GPI,May 6). Occidental said in a regulatory filing that Irani will get lifetime security and financial planning services estimated at up to $1.3 million annually. The former executive was paid an average of $90 million annually in total compensation during the past 11 years, according to a calculation by the Los Angeles Times. Initial comments from Wall Street analysts characterized the exit package for the former executive as excessive.

Regency Energy Partners LP is picking up the midstream business of Eagle Rock Energy Partners LP in a $1.3 billion deal. Combined with Regency’s planned acquisition of PVR Resources, the Eagle Rock assets will diversify its exposure in East and South Texas as well as the Texas Panhandle. A smaller deal, also announced Monday, aims to grow Regency’s presence in the Delaware Basin in West Texas.

The transition from coal-fired power plants to those fueled by natural gas in Texas is saving water and making the Lone Star state less vulnerable to drought, even when the large amount of water used for hydraulic fracturing (fracking) to stimulate gas wells is considered, according to a new study.

A group of 21 scientists, engineers and other technical experts last week wrote California Gov. Jerry Brown in support of shale oil and natural gas development and the use of hydraulic fracturing (fracking).

The Regulatory Commission of Alaska (RCA) has denied an application filed by Fairbanks Natural Gas LLC (FNG) and approved an application filed by Interior Alaska Natural Gas Utility (IANGU) for the right to distribute natural gas in the Fairbanks North Star Borough area. In denying the application by FNG, commissioners said the privately owned utility relied too heavily on presumed gas demand from Golden Valley Electric Association. The commission found that the FNG application overstated expected demand from Golden Valley by 0.5 to 1.5 Bcf per year. Three local area governments formed IANGU about a year ago to serve an area beyond the existing FNG service territory following dissatisfaction with the rates charged by FNG. FNG, which is owned by Minnesota investors, had also applied to the RCA to serve the same territory.

Coming off a much warmer than normal weekend in which a number of eastern population centers welcomed the official start of winter with temperatures in the high 60s to low 70s, the return to more seasonable cold on Monday, with forecasts of more to come, saw the value of physical gas traded for Tuesday delivery increase at nearly all points across the country.

Sens. John Hoeven (R-ND) and Heidi Heitkamp (D-ND) announced Friday that bipartisan legislation they authored to help streamline oil and gas permitting on federal lands in western North Dakota has passed the U.S. Senate and is headed to the White House for President Obama’s signature.

David F. Smith, executive chairman of National Fuel Gas Co., is retiring effective April 1. He would continue to serve as chairman of the board. Smith joined National Fuel in 1978 and was CEO from February 2008 until March. Elected to the board in 2007 and named chairman in 2010, Smith during his tenure served as president of National Fuel Gas Supply Corp., National Fuel Gas Distribution Corp., Empire Pipeline Inc. and National Fuel Resources Inc. “During his five years as CEO, Dave established the current course of the company, focusing attention and significant resources on development in the Marcellus Shale as Seneca Resources Corp.’s total production nearly tripled and the company’s pipeline business commenced a historic, transformational realignment,” said CEO Ron Tanski. Seneca is the exploration and production (E&P) arm of the company. The integrated Williamsville, NY-based operator has $6.2 billion in assets in E&P, gathering, utility, energy marketing, and pipeline and storage.

The Regulatory Commission of Alaska (RCA) has denied an application filed by Fairbanks Natural Gas LLC (FNG) and approved an application filed by Interior Alaska Natural Gas Utility (IANGU) for the right to distribute natural gas in the Fairbanks North Star Borough area. In denying the application by FNG, commissioners said the privately owned utility relied too heavily on presumed gas demand from Golden Valley Electric Association. The commission found that the FNG application overstated expected demand from Golden Valley by 0.5 to 1.5 Bcf per year. Three local area governments formed IANGU about a year ago to serve an area beyond the existing FNG service territory following dissatisfaction with the rates charged by FNG. FNG, which is owned by Minnesota investors, had also applied to the RCA to serve the same territory.