Pecos

Debt-tarnished Quicksilver Resources Inc. said Thursday it is still in talks to sell a nonoperated minority working interest in its Barnett Shale assets and is negotiating a potential joint venture (JV) in the Horn River Basin in northeast British Columbia. Investors have been awaiting deals on both fronts for some time.

To give Kinder Morgan Inc. (KMI) complete control of a joint venture (JV) in which merger partner El Paso Corp. now owns one-half, its partnership on Wednesday agreed to buy a 50% interest in the Altamont gathering and processing system in Utah’s Uinta Basin, as well as the Camino Real Gathering System in the Eagle Ford Shale in Texas.

Victory Energy Corp. said Thursday a carbonite formation well in southeastern New Mexico it holds an interest in has been successfully re-entered, five years after being plugged, and is now completed, fracked and producing oil and natural gas.

Kern River Gas Transmission Co. has filed an application at FERC to expand its pipeline system between existing receipt points in Lincoln County, WY, to the Pecos delivery point in Clark County, NV, by 266,000 Dth/d to meet growing power generation demand for natural gas.

El Paso said it has determined that a pipe anomaly between the Eunice and Pecos River Stations will require replacement of about 80 feet of pipe, which will begin at 8 a.m. MST Thursday and is expected to take 12 hours. The reduction in segment capacity will be about 200 MMcf/d out of a base capacity of 400 MMcf/d. The IPENNWELL interconnect will be completely shut in for the duration of the work, but based on current levels of throughput, El Paso expects minimal service impact.

Transwestern declared an OFO for the second day in a row Thursday, saying allocations were being made at the GulfTerra Ward and GulfTerra Waha Pecos delivery points. “In order to preserve the safe and efficient operation of the pipeline…Transwestern has rescheduled volumes to the points to more closely match actual flow rates,” a bulletin board posting said. According to a spokesman, the volumes were reduced by an unspecified amount.

About 1 Bcf/d of flow on El Paso’s South Mainline downstream ofPecos River (NM) Station ceased after the pipeline exploded earlySaturday, killing 10 people and seriously injuring two others at anearby campsite (see related reports:wrap-up, politics).