Scheduled

Kinder Morgan Inc. and El Paso Corp. have received all regulatory approvals required to close their merger, which is scheduled for May 24. The deadline for El Paso shareholders and equity award holders to elect the form of consideration they wish to receive in the merger is 5 p.m. EDT May 23. The deal was announced last fall (see Daily GPI, Oct. 18, 2011) and received antitrust clearance with a condition that some assets be divested (see Daily GPI, April 20; March 19).

Total exploratory well completions rose during the first three months of this year, but natural gas drilling fell by 28% from a year ago, according to the American Petroleum Institute’s (API) latest well completion report. There were 2,495 natural gas wells completed in the quarter, while oil well completions were pegged at 5,352, down 1% from activity in 1Q2011; dry holes were estimated at 1,116 completions. The Washington, DC-based producer group reported that a total of 8,963 wells — both exploration and development — were completed in the first three months, down 9% from the same period of 2011. Total well completions were 9,877 in 1Q2011, including 5,425 oil well completions, 3,444 gas well completions and 1,008 dry holes. A total of 10,383 total wells — 6,149 oil wells, 3,217 gas wells and 1,017 dry holes — were completed in 4Q2011 (see NGI, Feb. 6). While overall well completions dropped in 1Q2012, exploratory well completions rose 12% from year-ago levels.

The Maryland House of Delegates passed a 7.5% state severance tax on natural gas production on Monday, which if adopted would become the highest severance tax rate for natural gas in the Marcellus Shale.

The buildout of infrastructure to serve growing liquids-rich natural gas production from shale plays is continuing. Driven by natural gas liquids (NGL) production out of the Rockies and the Eagle Ford Shale of South Texas, Enterprise Products Partners LP plans to construct two more NGL fractionators at its Mont Belvieu, TX, facility. These would provide 150,000 b/d of incremental capacity. Pipeline construction also is under way.

The Senate Energy and Natural Resources Committee has scheduled a confirmation hearing Wednesday (March 14) to consider multiple nominations to the Federal Energy Regulatory Commission (FERC), the Energy Information Administration (EIA) and the Interior Department. The nominees include Tony Clark, who currently is chairman of the North Dakota Public Service Commission, to be a FERC commissioner; John Norris for a second term at FERC; Adam Sieminski, chief energy economist for Deutsche Bank, to head the EIA; and Marcilynn Burke to be an assistant secretary of the Interior.

Although only two of its counties overlay the Marcellus Shale, Maryland could earn on average about $441 million in severance taxes over a 30-year period if drilling were permitted there, according to a report released Thursday by the Maryland Petroleum Council (MPC).

The Senate Energy and Natural Resources Committee has scheduled a confirmation hearing next Wednesday (March 14) to consider multiple nominations to FERC, the Energy Information Administration (EIA) and the Interior Department.

Ohio Gov. John Kasich is reportedly considering raising severance taxes on oil and natural gas, new taxes for the extraction of natural gas liquids (NGL) and a new impact fee on oil and gas operations.

Enbridge Energy Partners LP (EEP) said Tuesday that for at least the next three years, it plans to rely on rail facilities to transport crude oil from the Bakken Shale and Three Forks formations while it launches long-term plans to expand pipelines in the region.