Operations

Colorado regulators have approved a settlement for Rapid City, SD-based Black Hills Corp.’s natural gas utility operations in the state, allowing a small rate increase amounting to less than 1% annually. Black Hills/Colorado Gas Utility Co. put the recommended rate hike into effect Monday, the first base rate increase for the utility since April 2009. Although the increase amounts to only $174,000 more in revenue annually, or an 0.83% increase, Black Hills officials said the approved rates allow it to recover the nearly $30 million the utility has invested in its infrastructure since 2008, along with a 9.6% return on equity. The increase was hammered out in a settlement earlier this year among the utility, Colorado Public Utilities Commission staff and the state Consumer Counsel Office.

An Encana Corp. official on Thursday once again urged the U.S. Environmental Protection Agency (EPA) to withdraw a year-old draft report of groundwater samples near natural gas drilling sites in Pavillion, WY, saying the report was “sloppy” and had led to a “misguided response.”

Looking to support local oil and natural gas development operations in the Marcellus and Utica shale plays, Valerus and Brilex Industries have established a partnership to manufacture oil and gas production equipment in Youngstown, OH, for building surface facilities operating in the shales.

Anchor Drilling Fluids USA Inc. announced Monday that it has opened a drilling fluids production plant in Wellsville, OH, the first such facility in the state and designed to service oil and natural gas operators in the emerging Marcellus and Utica shales.

Statoil ASA, which has natural gas and oil operations in the Gulf of Mexico and across North America, last Thursday began delivering its U.S. natural gas produced in the Marcellus Shale to Canada to secure better prices.

Operations have begun at MarkWest Energy Partners’ Sherwood I gas processing plant and the initial phase of its high-pressure gas gathering system in Harrison and Doddridge counties, WV, to serve the Marcellus production of Antero Resources.

Statoil ASA, which has natural gas and oil operations in the Gulf of Mexico and across North America, on Thursday plans to begin delivering its U.S. natural gas produced in the Marcellus Shale to Canada to secure better prices.

Investors expecting dour third quarter earnings from Dow Chemical Co. one day after the company reported plans to cut approximately 2,400 jobs were given a bit of a surprise Wednesday as the chemical giant reported better-than expected earnings, thanks in part to abundant and low-priced natural gas.

Beginning Monday, producers will have to notify the Environmental Protection Agency (EPA) two days in advance by e-mail of their plans to hydraulically fracture (frack) natural gas wells