Reducing

Dallas-based midstream operator Crosstex Energy LP said Wednesday it is reducing its previously reported first and second quarter net income by $0.9 million because of an accounting error related to a natural gas purchase.

CIG has taken one unit at Table Rock (WY) Compressor Station out of service through June 23, reducing station capacity from 30 MMcf/d to 8 MMcf/d.

Forest Oil Corp. said it will pay about $255 million for producing assets, including about 26,000 acres, mainly in the Cotton Valley play of East Texas. The 110 Bcfe of estimated proved reserves (43% proved developed, 90% natural gas) produced about 13 MMcfe/d in January, and the Denver-based company said it expects to double production by the end of 2007.

FERC last Thursday issued a proposed rule aimed at reducing the time and expense involved in settling disputes that arise when parties move to change the terms of their jurisdictional wholesale natural gas and power sales contracts.

FERC on Thursday issued a proposed rule aimed at reducing the time and expense involved in settling disputes that arise when parties move to change the terms of their jurisdictional wholesale natural gas and power sales contracts.

Oklahoma Gas & Electric Co. (OG&E) flunked its prudence review, the Oklahoma Corporation Commission (OCC) said in reducing the amount the utility may recover from customers to pay its affiliate, Enogex Inc., for gas storage and transportation to fuel its power generation plants and ordering refunds of amounts already collected from customers.

Although it would be easier for oil and natural gas operators to look for new resources, the Texas Railroad Commission has no intention of reducing the financial assurance bonding requirements for offshore wells, a state commissioner said Tuesday.

Two units at CIG’s Rawlins (WY) Compressor Station will be out of service Aug. 1-31, reducing capacity through the station by 150 MMcf/d. In Utah, the entire Natural Buttes Compressor Station will be out of service Aug. 9-23 for plant upgrades and modifications, during which nominations will be scheduled to zero. In conjunction with the Natural Buttes outage, the Questar 101 Meter Station will be down with nominations scheduled to zero Aug. 9-12.

Wind energy is doing its part to help lower gas prices by reducing gas demand from gas-fired power generation, according to the American Wind Energy Association (AWEA). However, one critic says whatever money is saved in lower gas prices, if any, is clearly being more than offset by the substantial subsidies wind power developers receive from taxpayers.