Onshore

FERC last Tuesday reversed an August 2001 ruling that found part of Transcontinental Gas Pipe Line’s network located onshore and offshore Louisiana to be unregulated gathering and eligible to be spun down to affiliate Williams Gas Processing-Gulf Coast Co. (WGP).

FERC on Tuesday reversed an August 2001 ruling that found part of Transcontinental Gas Pipe Line’s network located onshore and offshore Louisiana to be unregulated gathering and eligible to be spun down to affiliate Williams Gas Processing-Gulf Coast Co. (WGP).

By zeroing in on Midcontinent natural gas wells, Chesapeake Energy Corp. has now moved into position as one of the largest customers of U.S. onshore drilling service companies, which has given it substantial negotiating power, CEO Aubrey McClendon said last week.

By zeroing in on Midcontinent natural gas wells, Chesapeake Energy Corp. has now moved into position as one of the largest customers of U.S. onshore drilling service companies, which has given it substantial negotiating power, CEO Aubrey McClendon said this week.

Dallas-based independent Remington Oil & Gas Corp., which concentrates its operations onshore and offshore the Gulf Coast, said fourth quarter production jumped 7.2%, while 2004 natural gas and oil volumes grew 9.5%, both setting company records.

The Department of Transportation (DOT) on Monday published a final rule requiring new onshore natural gas transmission lines and replacements of existing pipe or components to be designed and constructed to accommodate the passage of instrumented internal devices, better known as “smart pigs.”

The liquids level at the Tivoli Plant onshore Texas from a Matagorda Offshore Pipeline System pigging operation had receded to the point that all scheduled nominations were being accepted for Tuesday’s Intraday 2 cycle, MOPS operator Northern Natural Gas said. The pipeline was forced to shut down Sunday due to excess liquids being received at Tivoli (see Daily GPI, Dec. 23). According to an NNG spokesman, “We were able to get rid of the liquids faster than expected, and there are no remaining constraints on MOPS.” Florida Gas Transmission resumed taking deliveries from MOPS at their interconnect in Matagorda County, TX effective with the Intraday 2 cycle for Tuesday’s gas day and for Wednesday’s evening cycle. Another MOPS pigging is scheduled for Dec. 26-31.

Due to an excessive amount of liquids received at the Tivoli Plant onshore Texas Sunday morning, the Matagorda Offshore Pipeline System was shut in that day and all receipts and deliveries were scheduled to zero. Return to service is expected by Tuesday, MOPS operator Northern Natural Gas said; it had expected to finish a scheduled pigging project Sunday (see Daily GPI, Dec. 18). Florida Gas Transmission took its scheduled deliveries from MOPS at their interconnect in Matagorda County, TX to zero for Sunday’s gas day and until further notice.

In its fourth acquisition since May, Forest Oil Corp. last week agreed to buy 70 of Unocal Corp.’s offshore Gulf of Mexico (GOM) and onshore Louisiana properties for $295 million. As of July 1, the 273,000 net acres held approximately 34 MMboe in reserves, with net production of 18,000 boe/d.