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Northeast Pennsylvania Marcellus Shale producers got some relief from sagging prices when El Paso Corp.’s Tennessee Gas Pipeline Co. placed its long-awaited 300 Line forward-haul expansion in service, increasing capacity on the Tennessee Gas Pipeline (TGP) system by 350 MMcf/d, a nearly 50% boost.

After hinting for months that going big was the only way to accommodate excess ethane supplies in the Marcellus Shale, Williams on Tuesday proposed to build a large-scale natural gas processing and ethane project that would traverse the rich gas/dry gas divide in Pennsylvania.

More doubts arose Thursday regarding Pacific Gas and Electric Co.’s (PG&E) transmission pipeline testing as it related to its main link (Line 300) to Southwest natural gas supplies at the Arizona border. A California Public Utilities Commission (CPUC) hearing is set for Monday on the utility’s request to restore Line 300’s maximum allowable operating pressure (MAOP).

Oilfield services giant Halliburton on Thursday filed a lawsuit against BP plc claiming negligent misrepresentation, business disparagement and defamation related to the April 20, 2010 Macondo well blowout in the Gulf of Mexico.

Encore Energy Partners LP(ENP) closed on an acquisition of producing oil and natural gas assets in the Permian Basin of West Texas for a net price of $14.8 million from a private seller. The properties have estimated total net proved reserves of 1.03 million boe, of which 87% are oil and natural gas liquids (NGL). They are 51% proved developed, and current production is about 115 Boe/d. The effective date of the acquisition was May 1, 2011. ENP also said it agreed to acquire certain nonoperated working interests in producing oil and natural gas assets in Sweetwater County, WY, from an undisclosed seller for $28.5 million. The assets have estimated total proved reserves of 4.175 million boe, of which 65% are natural gas and 35% are oil and NGLs. They are 90% proved developed, and net production attributable to the acquisition is 880 boe/d. Closing is expected in September with an effective date of June 1, 2011. ENP said it made new oil and gas hedges covering a substantial portion of the estimated production related to proved developed reserves from both acquisitions for the next several years.

El Paso Corp. said Thursday it has filed Securities and Exchange Commission forms related to the planned spinoff this year of its exploration and production (E&P) business. The filing provides information about the spinoff and a detailed look at all aspects of the E&P business.

Inergy LP has closed on its acquisition of the Seneca Lake gas storage facility in Schuyler County, NY, and two related pipelines for about $65 million from New York State Electric & Gas Corp. Seneca Lake is a 2 Bcf salt cavern storage facility on Inergy’s U.S. Salt property outside Watkins Glen, NY. It has a maximum withdrawal capability of 145 MMcf/d and maximum injection capability of 72.5 MMcf/d. Seneca Lake is connected to the Dominion transmission system via the Seneca West Pipeline and indirectly to the citygate of Binghamton, NY, via the Seneca East Pipeline. The deal was announced in January 2010 (see Daily GPI, Jan. 12, 2010). It required the approval of the Federal Energy Regulatory Commission as well as that of the New York State Public Service Commission.

Western Gas Partners LP is buying the Bison gas treating facility and related assets in the Powder River Basin from Anadarko Petroleum Corp. for $130 million. “The cash flow profile of the Bison assets, which is 100% fee-based and entirely supported by demand charges, is a great addition to WES’ portfolio,” said Western Gas Partners CEO Don Sinclair. The Bison assets are in northeastern Wyoming and have a combined carbon dioxide treating capacity of 450 MMcf/d. Western Gas expects to finance the acquisition with $25 million of cash and the issuance of 2,950,284 common units to Anadarko and 60,210 general partner units to Western Gas Holdings LLC, the partnership’s general partner, at about $34.88/unit. The deal is expected to close early this month with an effective date of July 1, 2011.

Late summer promises to be a busy time for major federal regulatory proceedings related to the Pacific Gas and Electric Co. (PG&E) natural gas pipeline rupture last September in San Bruno, CA, according to a California-based staff member for Rep. Jackie Speier (D-San Mateo).