Reported

The groundwater in Pavillion, WY, contains chemicals that are normally used in natural gas production practices, such as hydraulic fracturing (fracking), according to a draft report released by the Environmental Protection Agency (EPA) Thursday.

Contract driller Helmerich & Payne Inc. has been repositioning its rig fleet or the last 10 years, well in advance of the shale revolution that has swept the oil and gas patch. Back then it wasn’t known how well suited the firm’s FlexRigs would be to horizontal drilling in the shales. As it turns out, they work quite well, H&P CEO Hans Helmerich told financial analysts during a fiscal fourth quarter earnings conference call.

Southern California Gas reported regaining 340 MMcf/d of withdrawal capacity and 125 MMcf/d of injection capacity at its Goleta storage facility Wednesday following completion of two planned high-inventory shut-in outages.

Two high-ranking state oil/gas drilling officials were fired by California’s Gov. Jerry Brown for putting too many roadblocks in the state’s permitting process, it was reported Monday. The move brought immediate praise from the exploration/production (E&P) industry, which has increasingly been critical of what its leaders viewed as an overly arduous process for obtaining permits to drill new wells.

Two high-ranking state oil/gas drilling officials were fired by California’s Gov. Jerry Brown for putting too many roadblocks in the state’s permitting process, it was reported Monday. The move brought immediate praise from the exploration/production (E&P) industry, which has increasingly been critical of what its leaders viewed as an overly arduous process for obtaining permits to drill new wells.

October natural gas futures rose Thursday despite the fact that the Energy Information Administration (EIA) reported an increase in working gas storage higher than what many traders were expecting. The prompt-month contract ventured north of $4 for a second straight regular trading session before closing the day at $3.980, up 4 cents from Wednesday. November futures added 2.3 cents to $4.068.

ANR reported beginning engine repairs at St. John Compressor Station along its Michigan Leg South, reducing total St. John west-to-east capacity by 100 MMcf/d (leaving 1,195 MMcf/d available) through Friday. Based on current nominations, the reduction may result in curtailment of IT and Firm Secondary nominations, ANR said.

Bison Pipeline reported that the section of pipe damaged in a July 20 rupture had been repaired, and it was beginning inline inspections Thursday as part of the restoration plan, allowing it to accept up to 200,000 Dth/d of nominations for Friday’s gas day.

Fayetteville Shale pioneer Southwestern Energy Co. has been branching out to Appalachia’s Marcellus Shale; to New Brunswick, Canada; and to the Lower Smackover Brown Dense formation, an unconventional oil reservoir in southern Arkansas and northern Louisiana. Right now company executives are most enthusiastic about the latter, which Southwestern has been working on for more than two years.