Result

Due to the high level of storage overhang at the end of winter, which was the result of record gas production in 2011 and a warm winter, the construction of new storage facilities in the United States is not recommended, according to a report issued by FERC’s Office of Enforcement (OE) Thursday.

Williams Partners LP has modified the open season for Atlantic Access, a proposed expansion of its Transco interstate pipeline, as a result of discussions with potential shippers (see Shale Daily, Feb. 7). Transco is increasing the total firm transportation capacity, offering additional firm transportation paths and revising the proposed in-service date to December 2015. The revised open season runs through July 13. Atlantic Access would connect gas supplies originating in western West Virginia and Pennsylvania to markets in the Northeast, Mid-Atlantic, Southeast and Gulf Coast regions. Transco is now proposing a total of six firm transportation paths under the project. Two of the three original paths have been fully subscribed. For customer inquiries, contact Gary Duvall at (713) 215-2589.

Two separate decisions in the U.S. District Court for the Northern District of New York came down mostly on the side of shale play giant Chesapeake Energy Corp. in a year-old dispute over the extension of leases from landowners at below-market prices. Landowners in parts of four counties in New York state’s portion of the Marcellus Shale filed lawsuits against the Oklahoma-based shale operator.

The ConocoPhillips board of directors has given final approval to spin off the downstream businesses as Phillips 66 at close of business on April 30, which would result in ConocoPhillips becoming the largest pure-play, upstream independent in North America (see NGI, July 18, 2011). The companies would be headquartered in Houston. Chairman and CEO Ryan Lance would lead ConocoPhillips. Phillips 66, to be traded on the New York Stock Exchange as “PSX,” would be led by Chairman and CEO Greg Garland and would comprise the refining and marketing; midstream and chemicals businesses.

The ConocoPhillips board of directors has given final approval to spin off the downstream businesses as Phillips 66 at close of business on April 30, which would result in ConocoPhillips becoming the largest pure-play, upstream independent in North America (see Daily GPI, July 15, 2011). The companies would be headquartered in Houston. Chairman and CEO Ryan Lance would lead ConocoPhillips. Phillips 66, to be traded on the New York Stock Exchange as “PSX,” would be led by Chairman and CEO Greg Garland and would comprise the refining and marketing; midstream and chemicals businesses.

Terra Energy Corp. said it is targeting international companies — particularly Asian firms — for a possible joint venture (JV) — and it is considering the sale of its natural gas-rich Montney Shale portfolio in British Columbia (BC) as it shifts toward more oil and natural gas liquids (NGL) production.

As another result of the heightened scrutiny prompted by the San Bruno natural gas pipeline explosion, a new California regulatory unit has identified 17 potential hazards as part of a new statewide database on gas system hazards.

Spokane, WA-based Avista Utilities’ retail natural gas rates for residential customers in Ohio dropped about 5.7% as the result of periodic adjustments for changes in wholesale gas prices. The tariff was decreased from 41.8 cents/therm to 36.2 cents/therm, based on the changes approved earlier by the Idaho Public Utilities Commission (PUC), providing a decrease of about $3.46 on the average residential customer’s monthly bill. Large commercial customer rates decreased by about 7.3%. Rates are adjusted by the PUC at least once a year based on a purchased gas cost adjustment mechanism, which has shown steady decreases in recent years with the continuing fall in wholesale gas prices.

Extracting natural gas from shale formations using hydraulic fracturing (fracking) “has no direct connection” to groundwater contamination reports, based on a study of three big shale gas plays in the United States, the Energy Institute at the University of Texas at Austin (UT) said in a new report.