Vancouver-based Epic Oil and Gas Ltd. said that AEC Storage and Hub Services Inc., a subsidiary of Alberta Energy Co. Ltd., has given notice to Epic’s U.S. subsidiaries Rival Resources Inc. and American Safari Resources Inc. that it is terminating its letter of agreement on the Birch Bay Gas Storage Project in northwest Washington State. In October 2000, Epic said AEC completed a four-mile seismic survey over part of the project area. The results of this work did not meet AEC’s expectations and consequently AEC suspended work on the project. In accordance with the terms of the agreement, AEC will pay to Rival and American Safari a substantial portion of a $50,000 “Success Fee.” In conjunction, Rival and American Safari have assigned to AEC thirty-eight oil and gas mineral leases covering 621 acres in the project area. Epic said the AEC decision will not negatively affect progress on Rival and American Safari’s ongoing natural gas exploration program in the same general area of Washington State; in fact the receipt of the Success Fee will assist work. The companies said results of recently completed programs in the area are “very encouraging.” The companies are scheduled to drill some of the best shallow natural gas targets this winter, Epic said.
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Western Gas, Questar Team Up For Gas Gathering in Wyoming
Rendezvous Gas Services LLC, formed by subsidiaries of Western Gas Resources Inc. (WGR) and Questar Market Resources plans to offer gas gathering and compression services beginning next year in the Pinedale anticline and Hoback Basin areas in southwest Wyoming under a joint venture agreement between the two companies.
Western Gas, Questar Team Up For Gas Gathering in Wyoming
Rendezvous Gas Services LLC, formed by subsidiaries of Western Gas Resources Inc. (WGR) and Questar Market Resources plans to offer gas gathering and compression services beginning next year in the Pinedale anticline and Hoback Basin areas in southwest Wyoming under a joint venture agreement between the two companies.
Williams to Build, Operate Deepwater Facilities for Dominion, Pioneer
Dominion Exploration & Production and Pioneer Natural Resources signed an agreement with various subsidiaries of Williams that will provide deepwater gas and oil infrastructure development and transportation services for the Devils Tower field. The deal calls for Williams to build and own the floating production facility as well as the gas and oil export pipelines. Dominion is operator of the field, with 75% working interest, and Pioneer owns the remaining 25% working interest.
Williams to Build Deepwater Facilities for Dominion, Pioneer
Dominion Exploration & Production and Pioneer Natural Resources signed an agreement with various subsidiaries of Williams that will provide deepwater gas and oil infrastructure development and transportation services for the Devils Tower field. The deal calls for Williams to build and own the floating production facility as well as the gas and oil export pipelines. Dominion is operator of the field, with 75% working interest, and Pioneer owns the remaining 25% working interest.
FERC Staff: El Paso Had Market Power, Committed Affiliate Abuse
Two El Paso Corp. subsidiaries, El Paso Natural Gas and El Paso Merchant Energy Co. (EPME), possessed market power — the ability to maintain prices above competitive levels — during the summer of 2000, and violated FERC’s marketing affiliate standards that govern the behavior of interstate pipelines and their affiliates, FERC staff counsel has concluded.
Kinder Morgan, Exelon Enter into TX Gas Supply Agreement
Subsidiaries of Kinder Morgan Energy Partners LP and Exelon Generation Co. LLC reported on Monday that they have entered into a long-term natural gas supply agreement. Under the terms of the transaction, Kinder Morgan Texas Pipeline will supply gas to ExTex LaPorte Ltd. Partnership’s new 160 MW generating facility located in LaPorte, TX.
Islander Pipeline Project Filed at FERC
Islander East Pipeline Co. LLC., a joint venture of subsidiaries of Duke Energy and KeySpan Corp., filed an application with FERC to construct 50 miles of interstate gas pipeline that will transport gas to growing markets in Connecticut, New York City and Long Island, NY. First announced in late January (see NGI, Feb. 5), the 250 MMcf/d pipe is expected to be in service in 2003.
Islander Files CT-NY Pipe Project With FERC
Islander East Pipeline Co. LLC., a joint venture of subsidiaries of Duke Energy and KeySpan Corp., filed an application with FERC to construct 50 miles of interstate gas pipeline that will transport gas to growing markets in Connecticut, New York City and Long Island, NY. First announced in late January (see Daily GPI, Jan. 30), the 250 MMcf/d pipe is expected to be in service in 2003.
El Paso Hit with Another Major Class Action Suit in CA
Multiple El Paso Energy subsidiaries were hit with a major classaction lawsuit on Friday filed on behalf of all the commercial andresidential gas customers in the State of California. The law firmLieff, Cabraser, Heimann & Bernstein fired off the complaint inState Superior Court in San Francisco against El Paso Natural Gasand several marketing and pipeline affiliates for allegedly rigginga capacity auction to gain market power and then manipulating gasprices at the California border.
