Rocky

Natural gas pipeline growth is moving full speed ahead in the Rocky Mountains, Southern California and the Northeast, but expansion of West-to-East transportation capacity, pipelines in Atlantic Canada and Gulf Coast infrastructure has slowed considerably — marking a huge change from the outlook just two years ago, a panel of energy executives said Wednesday.

Natural gas pipeline growth is moving full speed ahead in the Rocky Mountains, Southern California and the Northeast, but expansion of West-to-East transportation capacity, pipelines in Atlantic Canada and Gulf Coast infrastructure has slowed considerably — marking a huge change from the outlook just two years ago, a panel of energy executives said Wednesday.

Energy West Inc., a natural gas, propane and energy marketing company serving the Rocky Mountain states, said Monday that Edward Bernica has resigned as president and CEO and as a member of the board of directors and that John C. Allen has been named by the board to take over the positions on an interim basis. The changes will take effect immediately. Allen has been Energy West’s general counsel, vice president and secretary since 1992. “All of us at Energy West will move forward to work to strengthen our financial position and to provide a solid basis for our company to operate in the new environment facing energy companies,” Allen said. “We will continue to work to strengthen our business operations with particular emphasis on our core businesses in the regulated natural gas and propane distribution businesses. For now, we do not anticipate expanding our involvement in other areas outside of those core businesses.” Chairman G. Montgomery Mitchell said Allen is a leading candidate for assuming the CEO post on a permanent basis.

In the first public forum of the Rocky Mountain Energy Council (RMEC) on Wednesday, the Bush administration panel heard recommendations from industry, environmental and ranching groups on how to — or not to –streamline the permitting process to speed up drilling in the oil and gas-rich basins of the Rockies.

The experts disagree on how much recoverable gas there is in the Rocky Mountains, but economists, E&P and pipeline executives working in the area do agree it is “under explored and under exploited,” with extremely complex geology requiring new technologies that are continuously under development, as well as increased land access and investment in infrastructure.

The experts disagree on how much recoverable gas there is in the Rocky Mountains, but economists and E&P and pipeline executives working in the area do agree it is “under explored and under exploited,” with extremely complex geology requiring new technologies that are continuously under development, as well as increased land access and investment in infrastructure.

Williams sold a small package of Rocky Mountain region producing properties in the Denver-Julesberg (D-J) basin in northeastern Colorado to Bridgeport, WV-based Petroleum Development Corp. for $28 million. The D-J Basin properties were among those announced for sale earlier this year as part of Williams’ financial-strengthening plan.

Rocky Mountain Gas Inc. (RMG) has signed on with Gastar Exploration Ltd. in a joint venture to develop nearly 37,000 acres of Gastar’s coalbed methane (CBM) properties in the Powder River Basin of Wyoming and Montana.

Williams unloaded more Rocky Mountain reserves Thursday, selling about 8.6 million boe (75% light oil and 25% natural gas) of reserves in the Uinta Basin in Utah to Berry Petroleum for $49 million. Earlier this month Williams sold a much larger chunk of its reserves, 311 Bcfe, to XTO for $400 million (see Daily GPI, April 10).