Northwest notified shippers that due to the current shut-in of Questar’s Clay Basin storage facility (see Daily GPI, Oct. 8) and the need to protect its own Jackson Prairie storage account for the upcoming winter season, “Northwest is no longer able to mitigate the overscheduling of Kemmerer” Compressor Station. Thus a recall advisory and realignment OFO were to become effective Saturday (Oct. 11) until further notice, Northwest said. It will issue the daily OFO obligations to affected parties if the primary firm scheduled quantity through Kemmerer is above the design capacity of 655,000 Dth/d. Shippers with OFO obligations must realign nominations from receipt points south of Kemmerer to receipt points north of Kemmerer, “or may elect to voluntarily reduce their nominations through Kemmerer by the OFO volume or take other mutually agreeable action to alleviate the problem,” the pipeline added.
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MMS: Nearly 13% of GOM Gas Production Restored
Around 87.5% of the natural gas and 95.2% of the oil produced in the Gulf of Mexico (GOM) remained shut in at midday Thursday, according to the Minerals Management Service (MMS). Estimated gas output from the GOM before Hurricane Gustav was 7.4 Bcf/d; oil production was around 1.3 million b/d.
Transportation Notes
Tennessee said it was allowing all production behind the Grand Chenier and Sabine processing plants that had been ordered to shut in Monday due to Tropical Storm Edouard to resume flows Wednesday.
Transportation Notes
The Hess Corp.-operated Sea Robin Gas Processing Plant was shut in late Tuesday morning, according to a notice by Sea Robin Pipeline. The pipeline reduced Plant Volume Reduction nominations by two-thirds for Wednesday’s gas day and said they would be cut to zero Thursday for the duration of the plant outage, during which gas will continue to be dehydrated. Shippers were encouraged to call downstream delivery point operators to see if they will be accepting gas from Sea Robin Pipeline during this outage.
Transportation Notes
Southern Natural Gas has scheduled a shut-in test at the Bear Creek Storage Field in North Louisiana from Tuesday through next Monday. The test constitutes a force majeure event, Southern said, and as a result each CSS customer will be allocated 64% of its currently effective Daily Injection Quantity and Daily Withdrawal Quantity. Those customers were advised that the allocations will affect not only their CSS service, but also related injection/withdrawal capacity under no-notice firm transportation service.
Ultra ‘Persevered, Prospered’ Despite Low Rockies Prices
Despite low Rockies natural gas basis prices last year, which for a period forced Ultra Petroleum Corp. to shut in some of its wells (see NGI, Nov. 5, 2007), CEO Michael D. Watford last week said that “somehow, someway” the company “persevered and then prospered” in 2007.
Judge Greenlights Atlantic Rim Project
A U.S. district court judge has denied a preliminary injunction by environmental groups to shut down development of a coalbed methane (CBM) natural gas drilling project along Wyoming’s Atlantic Rim.
Judge Denies Preliminary Injunction; Atlantic Rim Project to Continue
A U.S. district court judge denied a preliminary injunction by environmental groups to shut down development of a coalbed methane (CBM) natural gas drilling project along Wyoming’s Atlantic Rim.
Transportation Notes
Southern Natural Gas reported experiencing an unscheduled outage Friday morning at Gate 6 offshore Louisiana. Some production was shut in as a result, but based on the best information available, Southern said it would try to keep markets whole for Friday’s gas day. Damage assessment is under way, the pipeline added.
Paramount Sells Oilsands Leases, Gas Rights in NE Alberta to MEG
Calgary-based Paramount Resources Ltd.’s shares tumbled on news Friday that it will sell its oilsands leases and shut-in and producing natural gas rights in the Surmont area of northeastern Alberta to MEG Energy Corp. for C$301.7 million (US$284.2 million).
