Separate

Atmos Energy Corp. and Equitrans LP are pinning their hopes on FERC approving their separate proposals in September to build new pipelines to ease the capacity constraint in eastern Kentucky that has led to natural gas production being shut in for much of the year in that region.

FERC in separate orders Tuesday directed Columbia Gulf Transmission and Tennessee Gas Pipeline to submit revised tariff filings that comply with the agency’s new policy statement on natural gas quality issues that was issued in June. The orders also called for technical conferences to be held to discuss the proposed changes.

FERC last Thursday issued decisions in four separate natural gas pipeline and storage cases that would expand the interstate gas infrastructure system in the United States.

FERC on Thursday issued decisions in four separate natural gas pipeline and storage cases that would expand the interstate gas infrastructure system in the United States.

As the jury began its second day of deliberations in the case against Enron Corp. founder Kenneth Lay and ex-CEO Jeffrey Skilling, Lay faced a new day and a new trial on Thursday in a separate fraud and conspiracy case involving his personal banking.

In separate presentations to analysts in New York this week, the heads of energy giants, Exxon Mobil Corp. and Chevron Corp. mapped out their companies’ respective plans for future growth in the ever-evolving energy industry.

The Williams Companies announced it has reached four separate agreements totaling $77.2 million to resolve pending claims and investigations related to the false reporting of natural gas prices and volumes to published indexes for a period that ended in the fall of 2002.

Petrohawk Energy Corp. closed its previously announced North Louisiana gas properties acquisition and entered into a separate transaction to unload its Gulf of Mexico properties. First announced in December (see Daily GPI, Dec. 15, 2005), the Houston-based junior independent purchased two packages of natural gas reserves in the Elm Grove and Caspiana fields of northern Louisiana in private transactions for $262 million, before working capital and other closing adjustments. As of Dec. 31, 2005, Petrohawk owned 551 Bcfe in proved reserves, of which 76% were natural gas. With the added production from this transaction, Petrohawk’s current estimated production rate is 146 MMcfe/d. The acquired reserves are 98% natural gas and include an estimated 106 Bcfe of proved reserves and 100 Bcfe of probable and possible reserves. The assets include about 27,400 gross acres, with 80% of them operated. They include 11 producing wells and 185 identified drilling locations. Average 2006 projected output is expected to be 20 MMcfe/d; current production is 16 MMcfe/d. Lease operating expenses for 2006 are estimated to be $0.55/MMcfe. Petrohawk also announced Monday it is has entered into a definitive agreement with a private company to sell substantially all of its Gulf of Mexico properties for $52.5 million in cash. Petrohawk said these properties have internally estimated proved reserves of 26 Bcfe, are 70% gas, and are 59% proved developed and 27% operated, with lease operating expenses of $2.35 per Mcfe. Petrohawk estimates current production at 10 MMcfe/d. The transaction is expected to close in March 2006.

Kinder Morgan Energy Partners and Sempra Pipelines & Storage launched two separate binding open seasons Wednesday to test market interest in an expansion and extension of EnCana’s Entrega Gas Pipeline system, which Kinder Morgan and Sempra plan to buy as part of their $3 billion Rockies Express Project, planned to carry gas from the terminus of Entrega in northern Colorado more than 1,300 miles to the Clarington Hub in eastern Ohio.