Panhandle

The North American shales have been good to Devon Energy Corp. as evidenced by the company’s strong 3Q2010 earnings revealed this week. The Oklahoma City-based exploration and production (E&P) company said it set new quarterly production records in both its Barnett and Cana-Woodford shale plays.

Houston-based LINN Energy LLC on Tuesday said its latest two horizontal wells in the Granite Wash play of the Texas Panhandle tested at double-digit initial production (IP) rates. The wells, in which LINN holds 60% stakes, are in the Greater Stiles Ranch area.

El Paso Natural Gas Co. provided an update Tuesday on the investigation into a rupture and explosion on its pipeline that occurred Nov. 5 in the Texas Panhandle in the Prairie West subdivision of the town of Bushland.

Pipeline customers who failed to get lower rates on Panhandle Eastern Pipe Lines’ Southwest Gas Storage service by filing their own Natural Gas Act (NGA) Section 5 complaint [RP07-34] several years ago, nevertheless may have laid the groundwork and inspired the strategy for FERC’s surprise action last week, calling for formal investigations of three pipelines for possible over-recovery in their rates (see related story).

El Paso said Thursday it had experienced an overnight rupture on Line 1102 just north of the Amarillo Compressor Station in the Texas Panhandle. The line was shut in between the Amarillo and Dumas stations for investigation, which required the additional shut-ins of one receipt point and three delivery points. El Paso declared a force majeure. Due to the isolation of Line 1102 in this area, the pipeline said, no gas can be scheduled from Plains to locations north of the Amarillo station. Also, delivery locations north of the station were required to adjust their supply sources in Cycle 3 nominations for Thursday’s gas day to one of three receipt points in the Anadarko Basin area. In an updated notice prompted by customer inquiries about whether gas moving south into Amarillo was affected as well as gas moving north from the station, El Paso clarified that it is unable to schedule any gas in either direction through the rupture area.

Transwestern declared a force majeure Friday for Unit 5 at its P-3 Compressor Station. Panhandle Lateral capacity has been reduced from 253,000 MMBtu/d to about 180,000 MMBtu/d, Transwestern said. Interconnects with five other pipes are affected until the P-3 unit is returned to service, which is expected to be May 16.

Pacific Gas & Electric did not extend a systemwide low-inventory OFO beyond Thursday.

Panhandle Eastern said there will a pipe replacement outage lasting about 14 days starting Wednesday on the Houstonia 100 Line between gate valves 104 and 112W. During this period capacity through Houstonia will be limited to 1,250 MMcf/d, but the restriction is not expected to impact firm service.

Southern California Gas did not extend a high-linepack OFO beyond Friday.