Transco reported sending a force majeure notice to customers under the ESS and EESWS rate schedules. The pipeline explained that on Dec. 26 it detected a large, unexpected pressure drop in one of seven caverns at Eminence Storage Field in Covington County, MS. Eminence is the facility that supports the service for affected customers. Two days later Transco determined that gas was leaking from Cavern 3 and since then has reduced the cavern’s pressure by venting and flaring gas. On Jan. 4, Transco continued, based on a determination that the reduced pressure in Cavern 3 created a risk to the salt pillars separating it from adjacent Caverns 1 and 2, the pipeline began to reduce the pressures of Caverns 1 and 2 by withdrawing gas from them. During those operations, on Jan. 15 Transco discovered gas escaping from the ground around the wellhead for Cavern 1. It continued to safely withdraw gas from Caverns 1 and 2, and by Jan. 24 their pressure was low enough to avoid potential effects on Cavern 3. However, due to the leak at Cavern 3 and the damage to the well at Cavern 1, both are out of service, and that prompted last Thursday’s force majeure declaration, Transco said. Determining that neither cavern can be returned to service, it plans to file an application with FERC seeking to abandon them. Transco estimates that due to the force majeure event, Eminence is capable of providing about 70% of contracted capacity and 92% of contracted deliverability. The field’s daily injection capability is not affected.
Schedules
Articles from Schedules
Wood Mackenzie: Haynesville Could Surpass Barnett Shale
The Haynesville Shale — a “booming new resource play” — could become the fastest growing shale play to date in the Lower 48, based on initial results from operators, according to a new report from consultancy Wood Mackenzie.
Albertans Believe Province Not Getting Fair Share of Royalties, Survey Finds
While all sides say details like rates and schedules remain negotiable, it appears industry rapidly lost the battle to enlist the hearts and minds of Albertans for its war against an overhaul of provincial royalties. Within two weeks of a stunning report advocating $2 billion in annual royalty increases by a provincially appointed review panel, polls showed opinion swung overwhelmingly in favor of change — including in the Calgary capital of Canada’s natural gas industry.
Albertans Believe Province Not Getting Fair Share of Royalties, Survey Finds
While all sides say details like rates and schedules remain negotiable, it appears industry rapidly lost the battle to enlist the hearts and minds of Albertans for its war against an overhaul of provincial royalties. Within two weeks of a stunning report advocating $2 billion in annual royalty increases by a provincially appointed review panel, polls showed opinion swung overwhelmingly in favor of change — including in the Calgary capital of Canada’s natural gas industry.
Transportation Notes
ANR notified its interruptible storage customers under Rate Schedules DDS and MBS that they must reduce their remaining inventory to zero by Oct. 31. ANR will continue to allow infield transfers to and from DDS and MBS accounts if the transfers do not cause account balances to exceed 35% of their June 14 allocated balance, as long as the accounts are emptied by Oct. 31. A daily restriction on interruptible injections that was implemented June 12 (see Daily GPI, June 13) remains in effect until further notice, ANR said.
Transportation Notes
CIG issued an OFO affecting all shippers under rate schedules TF-1, TF-4, NNT-1, NNT-2 and CS-1. It was scheduled to take effect Saturday until further notice. As the pipeline said it had indicated in a Strained Operating Condition notice posted Wednesday, “CIG’s ability to handle imbalances caused by variations between scheduled receipts/deliveries and actual gas flow as well as any related excess injections into its storage fields is limited due to current high inventory levels. Since that posting, CIG’s storage inventories have continued to increase. CIG is in a critical operational situation related to its storage fields.” The OFO requires that all storage customers limit their inventory to no more than 102% of their contractual Maximum Available Capacity (MAC). Those with storage currently exceeding 102% of MAC should initiate withdrawals to return such inventory to within the OFO limits, CIG said. See the bulletin board for further details.
Transportation Notes
Citing its current and projected storage inventory, ANR notified storage customers under its DDS and MBS rate schedules that effective last Tuesday, it must limit their account activity to zero net injections through Oct. 31, the end of the traditional injection season. ANR said it will continue to allow DDS/MBS injections “provided that an equal or greater amount of gas is withdrawn” prior to Nov. 1. “Please be advised that daily operating conditions and firm service confirmations will determine the daily level of interruptible storage activity allowed.”
MMS Proposes Major Expansion of Fee System for OCS
Dealing with the federal government on offshore leases will get more expensive under new fee schedules proposed to recover the costs of its services by the Minerals Management Service (MMS) in two recently issued notices of proposed rulemaking.
MMS Proposes Major Expansion of Fee System for OCS
Dealing with the federal government on offshore leases will get more expensive under new fee schedules proposed to recover the costs of its services by the Minerals Management Service (MMS) in two recently issued notices of proposed rulemaking.
Devon Schedules New Beaufort Sea Drilling to Feed Mackenzie Pipe
While one aboriginal group is still putting up a fight, others are declaring the Canadian Arctic open for business, and the natural gas industry is betting the majority will prevail in the Northwest Territories. Devon Canada Corp. declared intentions to go ahead on the first new Beaufort Sea drilling campaign in more than 20 years.