Response

In response to a series of headline-grabbing oil and natural gas pipeline explosions in recent months, Transportation Secretary Ray LaHood on Monday launched a national pipeline safety initiative aimed at repairing and replacing aging pipelines to avert potentially catastrophic incidents. The initiative includes several proposals that were contained in legislation sent to Congress last year.

In response to Japan’s earthquake/tsunami-triggered nuclear power plant crisis, the Nuclear Regulatory Commission (NRC) on Wednesday launched a two-pronged review of the safety of U.S. nuclear plants.

In response to Japan’s earthquake/tsunami-triggered nuclear power plant crisis, the Nuclear Regulatory Commission (NRC) has launched a two-pronged review of the safety of U.S. nuclear plants, and state regulators in California and Arizona sought reviews of their plants.

In response to a filing by the energy company, a Mexican federal judge last Friday granted San Diego-based Sempra Energy’s liquefied natural gas (LNG) facility in North Baja California a second protective order against local government officials and adjacent private landowners who have tried to shut down the Energia Costa Azul LNG terminal in past months (see NGI, Feb. 18).

March natural gas futures managed a modest gain Wednesday as other markets soared or sank in response to turbulence in oil-rich Libya and the greater Middle East. Analysts noted that the situation is far different than the recent upheaval in Egypt as Libya is a major exporter of crude oil and by most accounts the petroleum markets are going to have to factor in the loss of about 1.5 million b/d, as companies evacuate personnel from the country.

Natural gas futures bulls made another assault on resistance at $4.500 but received the same response as on Monday as the January contract was unable to settle above the important price level. The prompt-month contract ended up closing at $4.393, down 9.5 cents from Monday’s close.

In the first approval of its kind in the state, the Ohio Environmental Protection Agency (OEPA) last week signed off on a request bythe city of Warren, OH, to accept pre-treated natural gas well wastewater.

In its latest public response to outside efforts to kill its proposed acquisition by private equity firm Blackstone Group LP, Houston-based Dynegy Inc. said Monday the growing prospects for depressed natural gas prices and the accelerated advent of shale gas makes it crucial for Blackstone’s $4.50/share offer to be approved Wednesday by shareholders.

In response to a motion by the Department of Justice (DOJ), the U.S. District Court in New Orleans ordered that a security zone be established around the wreckage of the Deepwater Horizon rig in the Gulf of Mexico (GOM). The security zone, which would remain in place until at least Oct. 8, 2011, would extend 750 feet in all directions from the center of mobile offshore drilling unit Deepwater Horizon. The wreckage, which is located in an area known as the Mississippi Canyon, also would extend from the sea floor of the GOM to the sea surface. The federal court ruled that it would be in the interest of the public to protect the search area and any evidence located in the area against intentional or unintentional loss. It directed the DOJ to inform the public and companies about the security zone. DOJ has informed companies, such as oil and natural gas producers, who have the means and equipment to operate in the wreckage site not to enter the security zone. The order will be enforced by the United States using vessels, aircraft or other appropriate means and equipment, the DOJ said. Eleven workers died in the blast aboard the Deepwater Horizon rig, which was owned and operated by Transocean Inc. and leased by BP plc (see NGI, April 26).