Dynegy Inc.’s amended Form 10-K, filed with the Securities and Exchange Commission (SEC) on Feb. 14, resulted in an $11 million reduction to 2001’s net income and a $13 million increase to 2002 net income, which were both reported in January (see Daily GPI, Feb. 3).
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The prospect for renewed cold weather in the Midwest and Northeast early this week resulted in across-the-board cash increases ranging from about a nickel to 45 cents Monday. Most gains were between a dime and 30 cents.
A pigging operation on Matagorda Offshore Pipeline System from Wednesday evening through Friday resulted in very high liquid levels, and thus scheduled volumes from MOPS were reduced to zero for the gas days of Friday through Sunday. The action cut deliveries of about 100,000 MMBtu/d into South Texas interconnects with Florida Gas Transmission, Gulf South and Tejas Gas Pipeline, MOPS operator Northern Natural Gas said.
A competitive auction of 164 oil and gas leases on federal land in late March resulted in bids on 113 parcels that will bring $729,250 to federal and state authorities. The auction, conducted by the Department of Interior’s Bureau of Land Management (BLM), included parcels in Alabama, Arkansas, Louisiana, Mississippi and Illinois. Bonus bids, filing fees and rental revenue amounting to $520,724 will go to the U.S. Treasury, and $208,525 will be shared with the affected states. Eight of nine parcels were leased in Alabama; 42 of 52 in Arkansas; six of six in Louisiana; 56 of 96 in Mississippi; and one parcel was offered and leased in Illinois. The BLM has responsibility for leasing the federally owned minerals located in the 31 states east of and adjoining the Mississippi River and offers selected parcels at quarterly competitive auctions. Regulations require the bidding to open at $2 per acre. J. Bradley Jeffreys from San Diego, CA paid $36,646 for an 80-acre parcel in the DeSoto National Forest in Mississippi. His bid of $450 per acre was the highest per-acre bid of the auction. Leases are awarded for a 10-year term, and as long thereafter as there is production of oil and gas in paying quantities. The federal government receives a royalty of 12.5% of the value of production. Also, each state government receives a 25% minimum share of the bonus bid and the royalty revenue from each lease issued in that state. The next competitive oil and gas lease sale is scheduled for June 20, 2002. Visit the web site at www.es.blm.gov for more information about the lease sales.
PG&E called a Stage 4 systemwide OFO for gas day Saturday June 9. The recent high inventory customer-specific OFOs have not resulted in improved pipeline system conditions, the utility said. “Rather, we have seen non-targeted customers create significant imbalances.” The OFO had a 7% tolerance and $25/Dth penalties.
No injuries or fire resulted from a rupture Sunday evening onone of El Paso’s two 24-inch pipes (Line 1201) in the San JuanTriangle south of the pipeline’s San Juan River Mainline Station.The ruptured line was isolated and the other one remained inservice. Monday’s throughput impact was estimated at 50-75 MMcf/d(about 3% of Triangle capacity); no scheduling increases were beingallowed for Cycles 3 and 4 of the gas day. El Paso expected tocomplete repairs Monday night and that Triangle capacity would beback to normal today.
Multiple fires were reported last Tuesday afternoon in BattleCreek, MI, as an “incident” at Semco’s Battle Creek gas systemresulted in two destroyed homes and extensive residential damage.Two people were treated at the scene for smoke inhalation, Semcosaid. One report said the incident occurred when a high-pressureline was mistakenly connected to a low-pressure residential line.
The $1.9 billion sale in March of Panhandle Eastern Pipe Lineand Trunkline Gas to Michigan-based CMS Energy resulted in aone-time gain of $1.82 per share for the first quarter and anafter-tax gain of $660 million, putting Duke earnings for thequarter over results in the same quarter last year. Duke reportedearnings of $2.65 per share, compared with 87 cents in 1Q98.Without the sale, and the absence of an extraordinary item fromlast year’s quarter, basic first-quarter earnings were 83 cents pershare versus 89 cents last year.